M/s. Caparo Maruti Ltd., Gurgaon V. ACIT, New Delhi

ITA 2527/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4591 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-06-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 25-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Additional depreciation

Judgement Text

IN THE INCOME - TAX APPELLATE TRIBUNAL, DELHI BENCH B , NEW DELHI BEFORE : SHRI I.C. SUDHIR , JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 2527/DEL./2014 ASSESSMENT YEAR: 2005 - 06 CAPARO MARUTI LTD., PLOT NO. 7, MARUTI JV COMPLEX, DELHI GURGAON ROAD, GURGAON. PAN - AAACC6423G (APPELLANT) VS. A.C.I.T., LTU, NEW DELHI. (RESPONDENT) APPELLANT BY SHRI VED JAIN, C.A. RESPONDENT BY SH. ANSHU PRAKASH, SR. DR ORDER PER L.P. SAHU, A.M.: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 26.02.2014 OF THE LD. CIT(A), LTU, NEW DELHI FOR THE ASSESSMENT YEAR 2005 - 06. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME ON 29.10.2005. THE CASE WAS SELECTED FOR SCRUTINY . I N THE SCRUTINY PROCEEDINGS, THE ASSESSING OFFICER MADE CERTAIN ADDITIONS. THE LD. CIT(A) CONFIRMED THE ADDITIONS MADE ON ACCOUNT OF DEPRECIATION OF RS.1,18,02,678/ - , ADDITIONAL DEPRECIATION OF RS.57,94,549/ - AND FINE & PENALTY OF RS.11,04,004/ - . THE ASSESSING OFFICER IMPOSED PENALTY U/S. 271(1)(C) OF THE IT ACT ON THE BASIS OF DATE OF HEARING 30.08.2017 DATE OF PRONOUNCEMENT 19 .09.2017 ITA NO. 2527/DEL./2014 2 ABOVE ADDITIONS. AGGRIEVED BY PENALTY ORDER, THE ASSESSEE APPEALED BEFORE THE CIT(A) AND THE LD. CIT(A) CONFIRMED THE PENALTY ORDER. A GGRIEVED BY TH IS ORDER OF THE LD. CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. AS REGARDS THE PENALTY BASED ON DEPRECIATION OF RS.1,18,02,678/ - , WE FIND THAT THE ITAT BENCH - B, NEW DELHI IN QUANTUM APPEAL (ITA NO. 1645 AND 1784/DEL./2011) FOR THE A.Y. 2005 - 06 , HAS ALREADY DELETED THIS ADDITION VIDE ORDER DATED 12.01.2017 AND ON THE REMAINING ADDITIONS ON ACCOUNT OF ADDITIONAL DEPRECIATION OF RS. 57,94,549/ - AND FINE & PENALTY PAID BY ASSESSEE COMPANY TO HSIDC OF RS.11,04,004/ - , THE MATTER WAS SET ASIDE AND RESTORED TO THE FILE OF ASSESSING OFFICER FOR DECIDING THE SAME AFRESH. THEREFORE, SINCE THE VERY BASIS OF IMPOSITION OF PENALTY STOOD COLLAPSED, THERE REMAINS NO JUSTIFICATION TO SUSTAIN THE PENALTY , BASED ON THE ABOVE ADDITIONS AT THIS STAGE . WE, THEREFORE, SET ASIDE THE ORDER OF LD. CIT(A) AND CANCEL THE PENALTY IMPOSED BY THE AO. ACCORDINGLY, THE APPEAL OF THE ASSESSEE DESERVES TO BE ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OP EN COURT ON 19.09.2017 . SD/ - SD/ - ( I.C. SUDHIR ) (L.P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 19.09.2017 *AKS*