DCIT Corporate Circle 4(1), CHENNAI V. Marine Container Services (South) Pvt. Limited, CHENNAI

ITA 2507/CHNY/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7443 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 16-10-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N GOPI KRISHNA
• Keywords: Depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !' .$%$&, ( ') BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ./ ITA NO.2507/CHNY/2017 & +& / ASSESSMENT YEAR : 2014-15 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 4(1), CHENNAI. V. M/S MARINE CONTAINER SERVICES (SOUTH) PVT. LTD., NO.21, ASI BUILDING, SWAMI SIVANANDA SALAI, TRIPLICANE, CHENNAI - 600 005. PAN : AAACM 6255 A (-./ APPELLANT) (/0-./ RESPONDENT) -. 1 2 / APPELLANT BY : SHRI N. GOPIKRISHNA, JCIT /0-. 1 2 / RESPONDENT BY : NONE 3 1 4( / DATE OF HEARING : 21.06.2018 56+ 1 4( / DATE OF PRONOUNCEMENT : 03.07.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -8, CHENNA I, DATED 20.07.2017 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2 I.T.A. NO.2507/CHNY/17 2. NO ONE APPEARED FOR THE ASSESSEE INSPITE OF SERV ICE OF NOTICE BY RPAD. THE REGISTRY HAS PLACED ON RECORD THE POSTAL ACKNOWLEDGEMENT AS A PROOF OF SERVICE OF NOTICE ON THE ASSESSEE. THEREFORE, WE HEARD THE LD. DEPARTMENTAL REPRESENTA TIVE AND PROCEEDED TO DISPOSE THE APPEAL ON MERIT. 3. SHRI N. GOPIKRISHNA, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ASSESSEE CLAIMED DEPRECIATION OF 3,62,11,105/- ON THE CONTAINERS. REFERRING TO THE ASSESSMENT ORD ER, THE LD. D.R. SUBMITTED THAT THE ASSESSEE ENTERED INTO PURCHASE L EASE / FINANCE LEASE AGREEMENT. THE ASSESSING OFFICER HAS ALSO FO UND THAT THE LESSEE COMPANY M/S TRISTAR CONTAINER SERVICES (ASIA ) PVT. LTD. HAS CLAIMED DEPRECIATION IN THE RETURN OF INCOME FOR TH E ASSESSMENT YEAR 2014-15. HOWEVER, ACCORDING TO THE LD. D.R., ON THE BASIS OF AFFIDAVIT SAID TO BE FILED BEFORE THE CIT(APPEALS), THE CLAIM OF DEPRECIATION TO THE EXTENT OF 3,62,11,105/- WAS ALLOWED WITHOUT GIVING ANY OPPORTUNITY TO THE ASSESSING OFFICER. T HEREFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) IS NOT CORRECT IN ALLOWING THE CLAIM OF THE ASSESSEE. 4. WE HEARD THE LD. D.R. AND PERUSED THE RELEVANT M ATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICER CATEGOR ICALLY SAYS THAT 3 I.T.A. NO.2507/CHNY/17 M/S TRISTAR CONTAINER SERVICES (ASIA) PVT. LTD. HAS MADE A CLAIM OF DEPRECIATION IN THE RETURN OF INCOME FOR THE ASSESS MENT YEAR 2014- 15. COPY OF THE RETURN SAID TO BE FILED BY M/S TRI STAR CONTAINER SERVICES (ASIA) PVT. LTD. IS NOT AVAILABLE BEFORE T HIS TRIBUNAL. THEREFORE, THIS TRIBUNAL IS UNABLE TO ASCERTAIN WHE THER M/S TRISTAR CONTAINER SERVICES (ASIA) PVT. LTD. HAS CLAIMED DEP RECIATION ON THE CONTAINER. MOREOVER, COPY OF LEASE AGREEMENT IS AL SO NOT AVAILABLE, THEREFORE, IT IS NOT KNOWN WHETHER IT IS A FINANCE AGREEMENT BETWEEN THE PARTIES OR THE ASSESSEE PURCHASED THE CONTAINER AND LEASED OUT THE SAME. IN THE ABSENCE OF SUCH DETAILS, THIS TRI BUNAL IS OF THE CONSIDERED OPINION THAT THE MATTER NEEDS TO BE RECO NSIDERED BY THE ASSESSING OFFICER. ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE. THE ASSESSING OFFICER SHALL RE-EXAM INE THE MATTER IN THE LIGHT OF THE AGREEMENT BETWEEN THE PARTIES FOR LEASING THE CONTAINER AND ALSO THE RETURN SAID TO BE FILED BY M /S TRISTAR CONTAINER SERVICES (ASIA) PVT. LTD. AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASO NABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. 4 I.T.A. NO.2507/CHNY/17 ORDER PRONOUNCED ON 3 RD JULY, 2018 AT CHENNAI. SD/- SD/- ( !' .$%$& ) ( . . . ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) ( / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 3 RD JULY, 2018. KRI. 1 /49: ;:+4 /COPY TO: 1. -. /APPELLANT 2. /0-. /RESPONDENT 3. 3 <4 () /CIT(A)-8, CHENNAI 4. PRINCIPAL CIT, CHENNAI-4, CHENNAI 5. := /4 /DR 6. >& ? /GF.