M/s. Plastichemix Industries, Baroda V. The DCIT, Circle-2(2), Baroda

ITA 2525/AHD/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9756 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 09-12-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 28-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANT JAVERI
• Assessee Lawyers: UKTI SHAH
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 2525/AHD/2013 (ASSESSMENT YEAR: 2007-08) M/S. PLASTICHEMIX INDUSTRIES. 6THE FLOOR, KIRTI TOWER, TILAK ROAD BARODA. (GUJ.) V/S DCIT-CIRCLE-2(2), BARODA (APPELLANT) (RESPONDENT) PAN: AABFP8519L APPELLANT BY : SHRI UKTI SHAH, AR RESPONDENT BY : SHRI JAYANT JAVERI, SR. D.R. ( )/ ORDER DATE OF HEARING : 09-12-201 6 DATE OF PRONOUNCEMENT : 13-12-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-II, BARODA DATED 04.09.2013 PERTAINING TO A.Y. 2007-08. ITA NO. 2525 /AHD/2013 . A.Y. 2007-08 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO THE L EVY OF PENALTY U/S. 271(1)(C) OF THE ACT AT RS. 8,10,750/-. 3. IN THIS CASE, THE ASSESSMENT WAS MADE U/S. 143(3) O F THE ACT VIDE ORDER DATED 23.12.2009 WHEREIN THE CLAIM OF DEPRECIATION ON GOODWILL WAS DISALLOWED BY THE A.O. AND SIMULTANEOUSLY PENAL PRO CEEDINGS WERE INITIATED U/S. 271(1)(C) OF THE ACT FOR FURNISHING INACCURATE PARTICULARS BY CLAIMING DEPRECIATION ON GOODWILL. THE MATTER TRAVELLED UP T O THE TRIBUNAL AND THE TRIBUNAL IN ITA NO. 397/AHD/2011 BY ITS ORDER DATED 29.02.2016 WHILE DECIDING THE ISSUE ON THE CLAIM OF DEPRECIATION ON GOODWILL HELD AS UNDER:- IN OUR CONSIDERED VIEW, THE RIGHT COURSE OF ACTION WILL BE TO REMIT THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR ADJ UDICATION DE NOVO IN ACCORDANCE WITH THE LAW, PARTICULARLY IN THE LIGHT OF HONBLE SUPREME COURT DECISION IN THE CASE OF SMIFS SECURITIES (SUP RA), BY WAY OF A SPEAKING ORDER AND AFTER GIVING YET ANOTHER OPPORTU NITY OF HEARING TO THE ASSESSEE. WE DIRECT SO. 4. SINCE THE MATTER HAS BEEN RESTORED TO THE FILES OF THE A.O., IT WOULD BE APPROPRIATE TO RESTORE THE ISSUE RELATING TO THE LE VY OF PENALTY ALSO TO THE FILES OF THE A.O. THE A.O. IS DIRECTED TO DECIDE ON LEVY OF PENALTY U/S.271(1)(C) OF THE ACT AFTER DECIDING THE CLAIM O F DEPRECIATION AS PER THE DIRECTIONS OF THE TRIBUNAL (SUPRA). WE DIRECT SO. ITA NO. 2525 /AHD/2013 . A.Y. 2007-08 3 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 13 - 12- 20 16. SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 13/12/2016 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD