The India Taxtile Products, Ahmedabad V. The ACIT.,Circle-10, Ahmedabad

ITA 2560/AHD/2011

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9695 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 09-07-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 14-10-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J P JANGID
• Assessee Lawyers: NIMESH VYAWALA
• Keywords: Depreciation

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA NO.2560/AHD/2011 / ASSESSMENT YEAR: 2003-2004 THE INDIA TEXTILE PRODUCTS JAY HOUSE PANCHAVATI AHMEDABAD 380 006. PAN : AAAFT 8595 P. VS ACIT, CIR.10 AHMEDABAD. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI NIMESH VYAWALA, AR REVENUE BY : SHRI J.P. JANGID / DATE OF HEARING : 09/07/2015 / DATE OF PRONOUNCEMENT: 17/07/2015 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF ASSESSEE AGAINST THE ORDER OF THE CIT(A)-XVI, AHMEDABAD DATED 22.9.2 011 PASSED FOR THE ASSTT.YEAR 2003-04. 2. THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CIT (A) HAS ERRED IN CONFIRMING THE EXPENSES INCURRED BY THE ASSESSEE ON REPAIR AND MAINTENANCE AS EXPENDITURE OF CAPITAL IN NATURE IN AN EX PARTE ORDER. ITA NO.2560/AHD/2011 2 3. THE ASSESSEE IS A FIRM ENGAGED IN MANUFACTURE AN D EXPORT OF DIES, CHEMICALS AND INTERMEDIATES. IT HAS FILED ITS RETU RN OF INCOME ON 29.11.2003 DECLARING TOTAL INCOME OF RS.5,74,900/-. ON SCRUTINY OF THE ACCOUNTS, IT REVEALED TO THE AO THAT ASSESSEE HAS D EBITED A SUM OF RS.8,60,703/- UNDER THE HEAD REPAIRS AND MAINTENAN CE. THE LD. AO TREATED THE ABOVE EXPENDITURE AS CAPITAL IN NATURE. HE ALLOWED DEPRECIATION AT THE RATE OF 25% IN RESPECT OF PLANT & MACHINERY AND 10% IN RESPECT OF BUILDING, WHICH WORKS OUT TO BE A T RS.1,84,310/-. THE LD.AO MADE AN ADDITION OF RS.6,76,393/-. 4. ON APPEAL, THE LD.FIRST APPELLATE AUTHORITY HAS CONFIRMED THIS ADDITION ON THE GROUND THAT THE ASSESSEE FAILED TO APPEAR BEFORE THE FIRST APPELLATE AUTHORITY AND DID NOT SUBMIT ANY DE TAIL. 5. WITH THE ASSISTANCE OF THE LEARNED REPRESENTATIV E, WE HAVE GONE THROUGH THE RECORD CAREFULLY. SUB-SECTION (6) OF S ECTION 250 OF THE INCOME TAX ACT, 1961 MANDATES THE LEARNED CIT(A) TO DETERMINE THE POINT IN DISPUTE, AND THEREAFTER RECORD REASONS ON THOSE POINTS IN SUPPORT OF HIS CONCLUSIONS. THE LEARNED FIRST APPE LLATE AUTHORITY HAS OBSERVED THAT INSPITE OF OPPORTUNITY GIVEN TO THE A SSESSEE, NONE ON BEHALF OF THE ASSESSEE APPEARED FOR PROSECUTING ITS APPEAL. THE LEARNED CIT(A) HAS CONCURRED WITH THE CONCLUSION OF THE AO. WE FIND THAT THE LEARNED FIRST APPELLATE AUTHORITY FAILED T O RE-APPRECIATE THE MATERIAL ALREADY AVAILABLE ON RECORD IN ACCORDANCE WITH THE SETTLED LEGAL PRINCIPLES. NO DOUBT, THE ASSESSEE IS A NEGLIGENT ENTITY, BECAUSE, IT FAILED TO APPEAR BEFORE THE LD.CIT(A). BUT SIMULTA NEOUSLY, THE LD.CIT(A) OUGHT TO HAVE CONSIDERED THE MATERIAL ALREADY AVAIL ABLE ON RECORD AND RE-APPRECIATE THE CONTROVERSY. THEREFORE, WE SET A SIDE THE ORDER OF THE CIT(A) AND RESTORE THIS ISSUE TO THE FILE OF THE LD .CT(A) FOR RE- ADJUDICATING THE ISSUE AFRESH. THE ASSESSEE IS DIR ECTED TO APPEAR BEFORE ITA NO.2560/AHD/2011 3 THE LEARNED CIT(A) AND SUBMIT REQUISITE DETAILS. I N VIEW OF THE ABOVE, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTIC AL PURPOSE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON FRIDAY THE 17 TH DAY OF JULY, 2015 AT AHMEDABAD. SD/- SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER