DCIT, New Delhi V. M/s. G S Control Ltd., New Delhi

ITA 2433/DEL/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6700 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 02-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DLEHI BEFORE : SMT. DIVA SINGH, JUDICIAL MEMBER ITA NO.2433/DEL/2016 ASSESSMENT YEAR: 2011-12 DCIT, CIRCLE 10(1), VS. G.S. CONTROL LTD., NEW DELHI. F-3/8A, KRISHNA NAGAR, NEW DELHI. PAN : AACCG 0368G (APPELLANT) (RESPONDENT) APPELLANT BY : MS. RINKU SINGH, SR. DR RESPONDENT BY: NONE. DATE OF HEARING : 04.02.2020 DATE OF PRONOUNCEMENT : 06.02.2020 ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE, WHEREIN CORRECTNESS OF THE ORDER DATED 04.02.2016 OF CIT(A) -4, NEW DELHI PERTAINING TO 2011-12 ASSESSMENT YEAR IS ASSAILED O N THE FOLLOWING GROUND : 1. THAT ON THE FACTS AND IN CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION MADE BY AO ON ACCOUNT OF DISALLOWANCE OF 80% OF DEPRECIATION O F RS.96,45,654/- WITHOUT APPRECIATING THE FACT THAT D EPRECIATION IS ALLOWABLE ONLY IF THE ASSETS WERE EITHER USED AC TIVELY OR PASSIVELY FOR THE PURPOSE OF BUSINESS BUT IN THE IN STANT CASE THE ASSESSEE COMPANY DID NOT CARRIED OUT ANY BUSINE SS ACTIVITY THEREFORE, THERE CANNOT BE ANY PASSIVE USE OF THE A SSETS. 2 2. AT THE TIME OF HEARING, NO ONE WAS PRESENT ON BE HALF OF THE ASSESSEE. HOWEVER, LD. SR. DR SUBMITTED THAT THE TA X EFFECT INVOLVED IN THE PRESENT APPEAL IS RS.31,83,066/-. ACCORDINGL Y, IN TERMS OF CIRCULAR NO.17/2019 DATED 08.08.2019, THE APPEAL MA Y BE DECIDED ON THE BASIS OF LOW TAX EFFECT. IN THE SAID BACKDR OP, I AM OF THE VIEW THAT THE AFORESAID CBDT CIRCULAR PUTS AN END TO THI S LITIGATION WHERE RELIEF GRANTED BY THE CIT(A) IS UNDER CHALLENGE OVE R THE YEARS. TO QUOTE FROM THE ORDER DATED 14.08.2018 IN ITA 1398/A HD/2004 IN THE CASE OF ITO VS DINESH MADHAVLAL PATEL AND 627 OTHER S, THE ITAT ADDRESSING THE BACKDROP OF THE AFORESAID CBDT CIRCU LAR DATED 08.08.2019 WAS PLEASED TO NOTE WHAT IT MEANS, IN PLAIN WORDS, IS THAT WHEN A COMMISSIONER (APPEALS) GIVES THE TAXPAY ER TAX RELIEF OF UPTO RS 50 LAKHS IN AN APPEAL IN AN ASSESSMENT YEAR , THE MATTER ENDS THERE AND THE RELIEF SO GRANTED BY THE COMMISS IONER (APPEALS) CANNOT BE CHALLENGED BEFORE THIS TRIBUNAL ACCORDINGLY, IN THE LIGHT OF THE AFORESAID CBDT CIRCULAR AND THE AFORESAID DE CISION OF THE AHMEDABAD BENCH OF THE ITAT, THE APPEAL OF THE REVE NUE IS DISMISSED AS NOT MAINTAINABLE. SAID ORDER WAS PRONO UNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. SD/- (DIVA SINGH) JUDICIAL MEMBER DATED: 06/02/2020 AKS