D.C.I.T., Circle - 6(1), Kolkata, Kolkata V. M/s. Universal Cables Limited, Kolkata

ITA 2148/KOL/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2444 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 17-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Additional depreciation; Earning of tax free income; Proportionate interest
• Section: 14A; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA B BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI ABY T. VARKEY, JUDICIAL MEMBER) I.T.A. NO. 2148/KOL/2019 ASSESSMENT YEAR: 2013-14 DCIT, CIRCLE-6(1), KOLKATA................................................................................................APPELLANT VS. M/S. UNIVERSAL CABLES LTD.............................................................................................RESPONDENT [PAN: AAACU 3547 P] APPEARANCES BY: SMT. RANU BISWAS, ADDL.CIT, APPEARED ON BEHALF OF THE REVENUE. SH. AKKALDUDHWEWALA, A/R, APPEARED ON BEHALF OF THE ASSESSEE. DATE OF CONCLUDING THE HEARING : MAY13 TH , 2021 DATE OF PRONOUNCING THE ORDER : JUNE 23 RD , 2021 ORDER PER J. SUDHAKAR REDDY, AM : THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-19, KOLKATA [HEREINAFTER THE CIT(A)], PASSED U/S 250 OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT), DATED27.03.2019 FOR THE ASSESSMENT YEAR 2013-14. 2. THE DELAY IN FILING OF THIS APPEAL IS CONDONED. 3. AFTER HEARING RIVAL CONTENTIONS, WE FIND THAT BOTH THE GROUNDS OF APPEAL ARE COVERED BY THE DECISION OF THIS BENCH OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE AY 2014-15 IN ITA NO. 1461/KOL/2019, ORDER DATED 30.09.2020. 4. ON THE ISSUE OF CLAIM OF ADDITIONAL DEPRECIATION, THE TRIBUNAL AT PARA-4 HELD AS FOLLOWS: 4. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THAT THE CIT(A) HAS PLACED RELIANCE UPON THIS TRIBUNALS COORDINATE BENCHS ORDERS (SUPRA) IN ASSESSMENT YEAR 2010-11 AND 2011-12 ON THE VERY ISSUE WHILST DELETING THE IMPUGNED DISALLOWANCE COUPLED WITH THIS, YET ANOTHER COORDINATE BENCH IN DEPARTMENTAL APPEAL ITA NO. 1055/KOL/2018 FOR ASSESSMENT YEAR 2012-13 DECIDED ON 22.11.2019 HAS ADOPTED THE JUDICIAL CONSISTENCY IN DECLINING REVENUES IDENTICAL GRIEVANCE. ITS PLEADINGS ARE FAIR ENOUGH IN NOT PINPOINTING ANY DISTINCTION ON FACT AND LAW IN ALL 2 I.T.A. NO. 2148/KOL/2019 ASSESSMENT YEAR: 2013-14 M/S. UNIVERSAL CABLES LTD. THESE ASSESSMENT YEARS QUA THIS ISSUE OF ADDITIONAL DEPRECIATION. WE THEREFORE REJECT THE REVENUES INSTANT FORMER SUBSTANTIVE GROUND FOR THIS PRECISE REASON ALONE. 5. RESPECTFULLY FOLLOWING THE DECISION OF THIS BENCH OF THE TRIBUNAL, WE DISMISS GROUND NO. 1 OF THE REVENUE. 6. ON GROUND NO. 2 THE TRIBUNAL IN ITS ORDER AT PARA-5 HELD AS FOLLOWS: 5. NEXT COMES THE REVENUES LATTER SUBSTANTIVE GRIEVANCE SEEKING TO REVIVE SECTION 14A R.W.R 8D(2)(III) PROPORTIONATE INTEREST AND ADMINISTRATIVE EXPENDITURE DISALLOWANCE(S) OF RS.2,70,00,000/- AND 25,52,000/-; AGGREGATING TO RS.2,95,52,000/- MADE IN THE COURSE OF ASSESSMENT AND RESTORED BACK TO THE ASSESSING OFFICER FOR EXAMINING THE ASSESSEES FACTUAL CLAIM NOT TO HAVE UTILIZED ANY INTEREST BEARING FUNDS FOR MAKING THE EXEMPT INCOME YIELDING INVESTMENTS QUA THE FORMER LIMB FOLLOWED BY FURTHER DIRECTIONS TO TAKE INTO ACCOUNT ONLY THE EXEMPT INCOME YIELDING INVESTMENTS; RESPECTIVELY. THE CIT(A) HAS ADMITTEDLY GONE BY THE TRIBUNALS FINDINGS IN EARLIER ASSESSMENT YEAR(S) IN TUNE WITH YET ANOTHER COORDINATE BENCHS DECISION IN REI AGRO LTD. VS. DCIT 144 ITD 141 (KOL) AS UPHELD IN HONBLE JURISDICTIONAL HIGH COURT IN G. A. NO. 3581 OF 2013 TO THIS EFFECT. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO REBUT THIS CLINCHING FACT THAT THE CIT(A) HAS ADOPTED JUDICIAL CONSISTENCY WHEREIN THE TWIN CLINCHING FACTUAL ISSUES HAVE BEEN RESTORED BACK TO ASSESSING OFFICER FOR FACTUAL VERIFICATION QUA THE CORRESPONDING FACTS AND FIGURES ONLY. WE THEREFORE SEE NO MERIT IN THE INSTANT LATTER SUBSTANTIVE GROUND AS WELL. 7. RESPECTFULLY FOLLOWING THE DECISION OF THIS BENCH OF THE TRIBUNAL, WE DISMISS GROUND NO. 2 OF THE REVENUE. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. KOLKATA, THE 23 RD JUNE, 2021. SD/- SD/- [ABY T. VARKEY] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 23.06.2021 BIDHAN (P.S.) 3 I.T.A. NO. 2148/KOL/2019 ASSESSMENT YEAR: 2013-14 M/S. UNIVERSAL CABLES LTD. COPY OF THE ORDER FORWARDED TO: 1. DCIT, CIRCLE-6(1), KOLKATA. 2. M/S. UNIVERSAL CABLES LTD., 9/1, BIRLA BULDING, R.N. MUKHERJEE ROAD, BBD BAGH, KOLKATA-700 001. 3. CIT(A)- 19 , KOLKATA (SENT THROUGH MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR/DDO ITAT, KOLKATA BENCHES