M/s. Karnataka Power Corporation Limited, Bangalore V. Assistant Commissioner Of Income Tax, Circle- 11(5), Bangalore

ITA 25/BANG/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4343 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2002-2003
• Appeal Filed On: 08-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Capital expenditure

Judgement Text

ITA No.25/Bang/2020 M/s. Karnataka Power Corporation Ltd., Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA No.25/Bang/2020 Assessment Year: 2002-03 M/s. Karnataka Power Corporation Limited Shakthi Bhavan, No.82 Bengaluru 560 001 PAN NO : AAACK8032D Vs. ACIT Circle-11(5) Bangalore APPELLANT RESPONDENT Appellant by : Shri Narendra Sharma, A.R. Respondent by : Shri Sankar K. Ganeshan, D.R. Date of Hearing : 22.09.2022 Date of Pronouncement : 22.09.2022 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This appeal by assessee is directed against order of CIT(A) dated 27.9.2019 for the assessment year 2002-03. The assessee has raised following grounds of appeal:- 1. The order of the learned Commissioner of Income-Tax (Appeals)-4 in so far as it is against the appellant is against law, equity, facts and circumstances of the case. 2. The learned Commissioner of Income-Tax (Appeals)- 4 has erred in law and facts upholding the stand of the learned Assessing Officer in treating the donation of assets amounting to Rs. 2,18,08,292/- as capital expenditure and thus rejecting the claim of the appellant in ITA No.25/Bang/2020 M/s. Karnataka Power Corporation Ltd., Bangalore Page 2 of 3 the profit and loss account as revenue expenditure without understanding the facts and circumstances of the case. 3. The Commissioner of Income-Tax (Appeals)- 4 has erred in law and facts in upholding the stand of the learned Assessing Officer in treating the loss of assets amounting to Rs.2,19,73,292/- as capital expenditure and thus rejecting the claim of the appellant in the profit and loss account a revenue of the following projects without understanding the facts and circumstances of the case. I. Brindavan Hydel Scheme Rs. 1,35,70,828/- II. Chakra Diversion Scheme Rs. 77,94,355/- III. Other Projects [Obsolete Assets] Rs. 6,08,1091- Total Rs. 2,19,73,292/- 4. The learned Commissioner of Income-Tax (Appeals)-4 failed to appreciate that the expenditure incurred by the appellant towards donation of assets and also the loss of assets amounts to revenue expenditure since the appellant was not deriving any enduring benefits to capitalize the same under the facts and circumstances of the case. 5. Without prejudice the learned Commissioner of Income-Tax (Appeals)-4 ought to have allowed deprecation on the donation of assets and loss of assets under the facts and circumstances of the case. 6. The appellant craves leave to add, alter, delete or substitute any of the grounds urged above to meet the ends of justice. 7. In view of the above and other grounds that may be urged at the time of hearing of the appeal, your appellant prays that the appeal may be allowed in interest of equity and justice. 2. At the time of hearing, it is noticed that there was a delay of 41 days in filing the appeal before this Tribunal. On perusing the record, we find that the assessee has not filed any condonation petition for explaining the delay in filing this appeal. In our opinion, there existed no good and sufficient reason for filing the appeal belatedly ITA No.25/Bang/2020 M/s. Karnataka Power Corporation Ltd., Bangalore Page 3 of 3 before this Tribunal. Accordingly, we inclined to dismiss the appeal in limine, without admitting the appeal. 3. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 22 nd Sept, 2022. Sd/- (N.V. Vasudevan) Vice President Sd/- (Chandra Poojari) Accountant Member Bangalore, Dated 22 nd Sept, 2022. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.