Gujarat Chemical Port Terminal Co. Ltd., Bharuch V. The Income Tax Officer, Ward-1(1)(1), Baroda

ITA 2298/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8127 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 06-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SAURABH SINGH
• Keywords: Depreciation
• Section: 234B

Judgement Text

ITA NO.2298/AHD/2016 A.Y. 2009-10 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO.2298/AHD/2016 ASSESSMENT YEAR: 2009-10 GUJARAT CHEMICAL PORT TERMINAL CO. LTD., VS. INCOME TAX OFFICER, P.O. LAKHIGAM, WARD 1(1)(1), BARODA. VIA. DAHEJ, TALUKU VAGRA, BHARUCH 392 130. [PAN AAACG 6861 A] (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI SAURABH SINGH, SR. D.R. DATE OF HEARING : 24.05.2018 DATE OF PRONOUNCEMENT : 04.06.2018 O R D E R PER RAJPAL YADAV, ACCOUNTANT MEMBER: 1. ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINS T THE ORDER OF LD. CIT(A) DATED 31 ST MAY, 2016, PASSED FOR A.Y. 2009-10, ON THE FOLLOWI NG GROUNDS :- 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -L, VADODARA ['THE CIT(A)'] ERRED IN FACT AND IN LAW IN CONFIRMING THE ACTION OF THE INCOME TAX OFFICER, WARD-1(1)(1), VADODARA ['THE AO'] IN RESTR ICTING DEPRECIATION ON ELECTRIC INSTALLATION TO 10% INSTEAD OF 15% AS CLAIMED BY TH E APPELLANT AND THEREBY CONFIRMING THE ADDITION OF RS. 28,03,269/- TO THE I NCOME OF THE APPELLANT. 2. THE LEARNED CIT(A) ERRED IN FACT AND IN LAW IN C ONFIRMING THE ACTION OF AO IN RESTRICTING THE DEPRECIATION ON ELECTRICAL IN STALLATION TO 10% INSTEAD OF 15% DESPITE THE FACT THAT THE ELECTRICAL INSTALLATI ON IS AN INTEGRAL PART OF THE PLANT AND MACHINERY. 3. THE LEARNED CIT(A) ERRED IN FACT AND IN LAW IN C ONFIRMING THE ACTION OF AO IN DISALLOWING DEPRECIATION OF RS.28,94,339 ON F OREIGN EXCHANGE LOSS ARISING FROM REINSTATEMENT OF CREDITORS FOR FIXED A SSETS. 4. THE LEARNED CIT(A) ERRED IN FACT AND IN L AW IN CONFIRMING THE ACTION OF AO IN DISALLOWING THE CLAIM OF DEPRECIATION BY REJE CTING THE ACCOUNTING POLICY REGULARLY FOLLOWED BY THE APPELLANT. ITA NO.2298/AHD/2016 A.Y. 2009-10 PAGE 2 OF 2 5. WITHOUT PREJUDICE TO THE ABOVE, THE LEARN ED CIT(A) ERRED IN FACT AND IN LAW IN NOT ALLOWING THE FOREIGN EXCHANGE LOSS AS RE VENUE EXPENDITURE DESPITE HOLDING THAT THE SAME DOES NOT FORM PART OF THE COS T OF THE FIXED ASSET. 6. THE LEARNED CIT (A) ERRED IN FACT AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN CHARGING INTEREST U/S 234B OF THE ACT. 2. IT IS NOTICED THAT WHEN THE MATTER CAME UP FOR H EARING, NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE DESPITE NOTICE HAVING BEE N SERVED ON THE ASSESSEE AS PER THE ACKNOWLEDGEMENT SLIP AVAILABLE ON RECORD. FROM THIS, IT IS REASONABLE TO INFER THAT THE ASSESSEE IS NOT SERIOUS TO PURSUE ITS CASE. H ONBLE SUPREME COURT IN THE CASE OF CIT VS. B.N. BHATTACHARGEE AND ANOTHER, 118 ITR 461 (SC) OBSERVED THAT PREFERRING AN APPEAL MEANS EFFECTIVELY PURSUING IT. HONBLE M .P. HIGH COURT IN THE CASE OF ESTATE OF LATE TUKOJIRAO HOLKAR VS. CWT, 223 ITR 480(M.P.) DISMISSED THE REFERENCE FILED BY THE ASSESSEE FOR NOT TAKING NECESSARY STEPS. SIMIL AR VIEW IS TAKEN BY I.T.A.T., DELHI BENCH IN THE CASE OF MULTIPLAN INDIA LTD., 38 ITD 3 20. CONSIDERING THE ABOVE, IT APPEARS THAT THE ASSESSEE IS NOT INTERESTED IN PROS ECUTING ITS APPEAL. WE, THEREFORE, DISMISS THE APPEAL FILED BY THE ASSESSEE FOR NON-PR OSECUTION. 3. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 4 TH DAY OF JUNE, 2018. SD/- SD/- WASEEM AHMED RAJPAL YADAV (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, THE 4 TH DAY OF JUNE, 2018 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER UE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD