ACIT, Nashik V. M/s EPCOS INDIA P. LTD, Nashik

ITA 2213/PUN/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 72402 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 07-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MODI
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI G.S. PANNU, ACCOUNTANT MEMBER ITA NO.2213/PN/2012 (A.Y. 2004-05) JT. CIT, RANGE-2, NASHIK APPELLANT VS. M/S. EPCOS INDIA PVT. LTD., PLOT NO.E-12 TO 25, MIDC, SATPUR, NASHIK PAN: AAACE4000H RESPONDENT APPELLANT BY : SHRI A.K. MODI RESPONDENT BY : SHRI KISHOR PHADKE DATE OF HEARING : 28-11-2013 DATE OF PRONOUNCEMENT : 29-11-2013 ORDER PER SHAILENDRA KUMAR YADAV, JM: THIS APPEAL FILED BY REVENUE AGAINST THE ORDER OF CIT(A)-I, NASHIK DATED 21-08-2012 FOR THE A.Y. 2004-05. 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD.CIT(A)-I, NASHIK WAS JUSTIFIED IN DELETING T HE ADDITION OF RS. 5,70,40,OO0/- WHICH WAS MADE AS THE ASSESSEE HAS GOT DISCOUNT UNDER PREPAYMENT OF SALES TAX DEFERRAL SCHEME. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD.CIT(A)-I, NASHIK WAS JUSTIFIED IN DELETING D ISALLOWANCE OF RS. 90,,53,615/- MADE ON ACCOUNT OF CAPITALIZATI ON OF INTEREST EXPENSES AFTER ALLOWING THE ADMISSIBLE DEP RECIATION, (I.E OF RS. 1,10,95,116 - RS. 20,41,501). 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD.CIT(A)-I, NASHIK WAS JUSTIFIED IN DELETING T HE ADDITION OF RS. 20,41,501/- WHICH WAS ADDED AS PER EXPLANATION (1)(G) TO SEC 115JB(1) WHILE CALCULATING THE BOOK PROFIT F OR COMPUTATION OF MAT. 4. THE APPELLANT PRAYS THE ORDER OF THE ASSESSING OFFI CER MAY BE RESTORED. 5. THE APPELLANT PRAYS TO ADDUCE SUCH FURTHER EVIDENCE TO SUBSTANTIATE HIS CASE. 6. THE APPELLANT PRAYS LEAVE TO ADD, ALTER, CLARIFY, A MEND AND OR WITHDRAW ANY GROUNDS OF APPEAL AS AND WHEN THE OCCA SION DEMANDS. 2. AT THE OUTSET OF HEARING, IT WAS POINTED OUT THA T ORDER OF CIT(A) U/S. 263 HAS BEEN QUASHED BY THE ITAT BY OBSERVING AS UNDER: 6. CONSIDERING THE FACT IT IS THE LAW OF THE HON'B LE BOMBAY HIGH COURT AS REVEALED IN THE CASE OF RELIANCE UTIL ITIES REFERRED TO ABOVE THAT THE PRESUMPTION SHOULD BE THAT IN THE CASE OF MIXED FUNDS, ASSESSEE'S OWN FUNDS WOULD HAVE BEEN U TILIZED FOR PURPOSES OF MEETING THE COST OF ASSETS ACQUIRED IN THE YEAR IN THIS CASE, CONSIDERING THE ABOVE, WE ARE OF THE OPI NION THAT THE CIT HAS ERRONEOUSLY ASSUMED JURISDICTION ON THIS IS SUE TOO. THEREFORE, WE ARE OF THE OPINION THAT THE ASSESSEE SHOULD WIN ON THIS ACCOUNT ALSO. CONSIDERING THE ABOVE, WE ARE OF THE OPINION THAT EXAMINING THE ISSUES ON MERITS OF THE ADDITIONS CONSTITUTES MERELY AN ACADEMIC EXERCISE. THEREFORE, THE GROUNDS RELATING TO MERITS ARE DISMISSED AS ACADEMI C IN NATURE. ACCORDINGLY, THE GROUNDS RAISED IN THIS REGARD ARE ALLOWED. AS A RESULT CONSEQUENTIAL PROCEEDINGS GO INFRUCTUO US. 3. IN THE RESULT, REVENUES APPEAL GOES INFRUCTUOUS . ACCORDINGLY, SAME IS DISMISSED AS BEING INFRUCTUOUS. PRONOUNCED IN THE OPEN COURT ON THIS THE 29 TH DAY OF NOVEMBER, 2013. SD/- SD/- (G.S. PANNU) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED 29 TH NOVEMBER, 2013 GCVSR COPY TO:- 1) DEPARTMENT 2) ASSESSEE 3) THE CIT(A)-I, NASHIK 4) THE CIT-I, NASHIK 5) THE DR, B BENCH, I.T.A.T., PUNE 6) GUARD FILE //TRUE COPY// BY ORDER SENIOR PRIVATE SECRETARY ITAT PUNE BENCHES, PUNE