DDIT, CHENNAI V. The Madras Electric Trades Association, CHENNAI

ITA 2195/CHNY/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8894 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 28-08-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MATHIVANAN
• Assessee Lawyers: S SRIDHAR
• Keywords: Depreciation; Reasonable cause
• Section: 12AA; 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D B ENCH, CHENNAI . , ' # . $ , % & BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.2195/MDS/2014 ( / ASSESSMENT YEAR: 2009-10) THE DEPUTY DIRECTOR OF INCOME TAX (EXEMPTIONS)-III, AAYAKAR BHAVAN ANNEXE BLDG., 3 RD FLOOR 121, M.G.ROAD, CHENNAI-34. VS M/S. THE MADRAS ELECTRIC TRADES ASSOCIATION, 93, GOVINDAPPA NAICKEN STREET, CHINTADRIPET, CHENNAI-600 001. PAN:AAATT0639G ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. MATHIVANAN, JCIT /RESPONDENT BY : MR. S.SRIDHAR, ADVOCATE /DATE OF HEARING : 21 ST APRIL, 2016 /DATE OF PRONOUNCEMENT : 1 ST JULY, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL IS FILED BY THE REVENUE AGGRIEVED BY TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- VII, CHENNAI IN ITA NO.483/11-12 DATED 10.03.2014 PASSED UNDER SECTION 144 R.W.S. 147 & 250(6) OF THE ACT. 2. THE APPEAL FILED BY THE REVENUE WAS BARRED BY LIMITATION OF 45 DAYS. THE REVENUE HAS FILED AN AFF IDAVIT EXPLAINING THE REASON THAT AS THE CONCERNED 12AA FO LDER GOT 2 ITA NO.2195/MDS/2014 MIXED UP WITH THE OTHER FILES, CONSEQUENT TO WHICH THERE WAS DELAY IN OBTAINING ADMINISTRATIVE APPROVAL. IT WAS FURTHER SUBMITTED THAT THE DELAY IN FILING THE APPEAL WAS N EITHER WANTON NOR WILLFUL AND THEREFORE PRAYED FOR CONDONA TION OF DELAY. CONSIDERING THE SUBMISSIONS OF THE REVENUE W E ARE SATISFIED THAT THERE WAS REASONABLE CAUSE FOR THE D ELAY IN FILING THE APPEAL. THEREFORE IN THE INTEREST OF JUS TICE, WE HEREBY CONDONE THE DELAY IN FILING THE APPEAL AND A DMIT THE SAME FOR ADJUDICATION. 3. THE REVENUE IN ITS APPEAL HAS RAISED SEVERAL EL ABORATE AND NARRATIVE GROUNDS IN REGARD TO THE ACTIVITY OF THE ASSESSEE SOCIETY WHICH IS IN THE NATURE OF GENERAL PUBLIC UTILITY, APPLICABILITY OF THE PROVISO TO SECTION 2( 15) OF THE ACT, DISTINCTION BETWEEN THE RELATED BUSINESS ACTIVITY A ND UNRELATED BUSINESS ACTIVITY OF THE SOCIETY, ALLOWAB ILITY OF THE CLAIM OF DEPRECIATION, IMPOSITION OF CAPITAL GAIN T AX ETC. 4. AT THE OUTSET, WE FIND THAT LEARNED ASSESSI NG OFFICER HAS PASSED AN EX-PARTE ORDER DUE TO NON-REPRESENTAT ION. SUBSEQUENTLY, ON APPEAL, THE LEARNED COMMISSIONER O F INCOME TAX (APPEALS) HAS ALLOWED THE APPEAL FULLY W ITHOUT 3 ITA NO.2195/MDS/2014 ADDRESSING THE ISSUE ON THE ALLOWABILITY OF DEPRECI ATION, TAXABILITY OF CAPITAL GAIN ETC. THIS BENCH OF THE T RIBUNAL IN THE CASE ANJUMAN E-HIMAYATH-E-ISLAM IN ITA NO.2271/MDS/2014 VIDE ORDER DATED 02.06.2015 HAS HELD THE ISSUE WITH RESPECT TO THE ALLOWABILITY OF DEPRECIATION AGAINST THE ASSESSEE. THEREFORE, IN TH E INTEREST OF JUSTICE, WE HEREBY REMIT THE ENTIRE MAT TER BACK TO THE FILE OF THE LEARNED ASSESSING OFFICER IN ORDER TO PROVIDE AN OPPORTUNITY TO THE LEARNED ASSESSING OFFICER AS WEL L AS THE ASSESSEE TO EXAMINE ALL THE FACTS AND INTRICACIES I N THE CASE AFRESH. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 1 ST JULY, 2016 SD/- SD/- ( ' # . $ ) ( . ) (DUVVURU RL REDDY ) ( A.MOHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 1 ST JULY, 2016 SOMU *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF