Shri Rajiv Desai, Baroda V. The Dy. Commissioner of Income Tax(Intl. Taxn.), Vadodara

ITA 2193/AHD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7926 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 24-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL
• Keywords: Depreciation

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD , , BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.2193/AHD/2016 ( / ASSESSMENT YEAR : 2012-13) RAJIV DESAI 17, VRUNDAVAN SOCIETY NR. AMRAKUNJ SOCIETY RACE COURSE CIRCLE BARODA 390 023 / VS. THE DCIT (INTERNATIONAL TAXATION) BARODA # ./ ./ PAN/GIR NO. : AHWPD 3525 G ( #% / APPELLANT ) .. ( &#% / RESPONDENT ) #%' / APPELLANT BY : SHRI M.K. PATEL, AR &#%(' / RESPONDENT BY : SHRI JAMES KURIAN, SR.DR )*(+ / DATE OF HEARING 19/12/2017 ,-./(+ / DATE OF PRONOUNCEMENT 22/12/2017 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTA NCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX(APPEALS)-13, AHMEDABAD [CIT(A) IN SHORT] DATED 03/06/2016 ARISING IN THE ASSESSMENT ORDER PASSED UNDER S.143(3) OF T HE INCOME TAX ITA NO.2193/AHD /2016 RAJIV DESAI VS. DCIT (INTL.TAXATION) ASST.YEAR 2012-13 - 2 - ACT, 1961 (HEREINAFTER REFERRED TO AS 'THE ACT') D ATED 20/03/2015 RELEVANT TO ASSESSMENT YEAR (AY) 2012-13. 2. THE SOLITARY GROUND IN APPEAL OF THE ASSESSEE IS TOWARDS DISALLOWANCE OF DEPRECIATION OF RS.1,82,711/- BY TH E REVENUE. 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LD. AR FOR THE ASSESSEE MR.M.K.PATEL SUBMITTED THAT ASSESSEE IN TH E INSTANT CASE HAD CLAIMED A SUM OF RS.1,82,711/- AS DEPRECIATION ALL OWANCE AND CLAIMED DEDUCTION THEREOF IN RELATION TO INCOME FROM OTHER SOURCES. IT WAS SUBMITTED THAT THE DEPRECIATION PERTAINED TO FURNIT URES AND FIXTURES. THE ASSESSEE HAS DERIVED RENTAL INCOME OF RS.8,98,560/- TOWARDS THE RENTAL INCOME THEREFROM WHICH HAS BEEN OFFERED AS INCOME F ROM OTHER SOURCES. THE AO DISALLOWED THE AFORESAID CLAIM OF DEPRECIATI ON DISALLOWANCE ON THE GROUND THAT THERE IS NO PROVISION FOR ALLOWING DEPRECIATION UNDER THE HEAD INCOME FROM OTHER SOURCES. THE LOD.AR THERE AFTER SUBMITTED THAT THE CIT(A) HAS SUMMARILY UPHELD THE ACTION OF THE AO. THE LD.AR SUBMITTED THAT SECTION 57 (II) CLEARLY PROVIDES THA T DEPRECIATION ALLOWANCE IS ADMISSIBLE DEDUCTION WITH REFERENCE TO INCOME RE PORTED UNDER THE SECTION 56(2)(II) OF THE ACT. HE ACCORDINGLY URGED FOR RELIEF AS CLAIMED. 4. THE LD.DR, ON THE OTHER HAND, RELIED UPON THE OR DERS OF THE AO AND CIT(A). ITA NO.2193/AHD /2016 RAJIV DESAI VS. DCIT (INTL.TAXATION) ASST.YEAR 2012-13 - 3 - 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. WE STRAIGHT AWAY NOTICE THAT SECTION 57(II) CLEARLY PROVIDES TH AT DEPRECIATION ALLOWANCE UNDER S.32 IS AVAILABLE FOR DEDUCTION AGA INST THE INCOME RETURNED UNDER THE HEAD INCOME FROM OTHER SOURCES MORE PARTICULARLY INCOME FALLING UNDER S.56(2)(II). HENCE, RENTAL IN COME FROM FURNITURE BELONGING TO THE ASSESSEE IS ELIGIBLE FOR DEPRECIAT ION ALLOWANCE. THUS, WE FIND MERIT IN THE PLEA RAISED ON BEHALF OF THE A SSESSEE. THE AO ACCORDINGLY DIRECTED TO GRANT RELIEF DEPRECIATION A LLOWANCE AGAINST RENTAL INCOME DERIVED FROM FURNITURES AND FITURES AND RETU RNED UNDER THE HEAD OF INCOME FROM OTHER SOURCES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . THIS ORDER PRONOUNCED IN OPEN COURT ON 22/ 12 /2017 SD/- SD/- () ( ) (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 22/ 12 /2017 3..),.)../ T.C. NAIR, SR. PS ITA NO.2193/AHD /2016 RAJIV DESAI VS. DCIT (INTL.TAXATION) ASST.YEAR 2012-13 - 4 - !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &#% / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A)-13, AHMEDABAD 5. 89:+)56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. :<* / GUARD FILE. / BY ORDER, &8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 20.12.17(DICTATION-PAD 5-PA GES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 20.12.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.22.12.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 22.12.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER