M/s. GUPTA SONS, Bhopal V. Pr. CIT -1 , Bhopal

ITA 257/Ind/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8526 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-10-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 23-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Keywords: Depreciation; Set aside
• Section: 143(3); 263

Judgement Text

[ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.257/IND/2018 ASSESSMENT YEAR: 2013-14 M/S. GUPTA SONS 46, RAMLAXMI PARISAR 142, MALVIYANAGAR BHOPAL / VS. PR. CIT - 1 BHOPAL ( APPELLANT ) ( REVENUE ) P.A. NO. AAEFG8044L APPELLANT BY WRITTEN SUBMISSION (NONE) RESPONDENT BY SMT. ASHIMA GUPTA, DR DATE OF HEARING: 10.10.2019 DATE OF PRONOUNCEMENT: 11.10.2019 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER O F THE LD. PR. CIT-1, BHOPAL DATED 2.2.2018 PERTAINING TO THE ASSESSMENT YEAR 2013-14. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 2 1. THAT THE IMPUGNED ORDER PASSED U/S 263 OF THE ACT B Y PR. CIT IS BAD IN LAW AND DESERVES TO BE CANCELLED. 2. THAT THE LD. PR. CIT ERRED IN HOLDING THAT THE ORDE R OF ASSESSMENT PASSED BY A.O. WAS ERRONEOUS IN SO FAR AS IT WAS PR EJUDICIAL TO THE INTEREST OF REVENUE . 2. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAINST REVISING THE ASSESSMENT ORDER BY INVOKING PROVISIONS OF SECTION 263 OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT). THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT THE ASSESSEE FIRM IS ENGAGED IN THE BUSINESS OF JEWELLERY, ORNAMENTS, PRECIOUS STONES, ETC. THE ASSE SSMENT U/S 143(3) OF THE ACT WAS FRAMED VIDE ORDER DATED 3.3.2016. SUBSEQUENTLY, LD. PR. CIT ON GOING THROUG H THE CASE RECORDS NOTICED THAT THE ASSESSEE HAD COMMISSIONED AND INSTALLED SOLAR POWER GENERATION SYSTEM ON 26.3.201 3. THE COST OF FRESH PROJECT INCLUDING LAND WAS RS.9,77,72,500/- AND CLAIMED DEPRECIATION @ 40%. IT W AS NOTICED THAT THE INVOICE BILL OF SOLAR PLANT FROM M/S. MNB SWITCHGEAR WAS DATED 30.3.2013 THAT GOES TO SHOW THAT [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 3 PLANT WAS PURCHASED AFTER INSTALLATION AND IT WAS BEING USED IN THE BUSINESS BY THE ASSESSEE. THEREFORE, LD . PR. CIT BY INVOKING THE PROVISIONS OF SECTION 263 OF TH E ACT ISSUED A NOTICE ON 27.12.2017 TO THE ASSESSEE CALLING UPON AS TO WHY THE ASSESSMENT ORDER SHOULD NOT BE REVISED. IN RESPONSE THERETO, THE ASSESSEE FILED WRITTEN SUBMISS ION. THE LD. PR. CIT WAS NOT SATISFIED WITH THE EXPLANATION OFFERED BY THE ASSESSEE. THEREFORE, HE SET ASIDE THE ASSESSMENT ORDER AND DIRECTED THE A.O. TO REFRAME THE ASSESSMENT. 3. AT THE TIME OF HEARING, NO ONE APPEARED ON BEHALF OF THE ASSESSEE. IT IS NOTICED THAT THE ASSESSEE HAD SOUG HT ADJOURNMENT ON LAST DAY OF HEARING AND ALSO ON 10.5.201 9. THE ASSESSEE WAS AWARE OF THE DATE OF HEARING. WE FIND THAT THE ASSESSEE HAS FILED A WRITTEN SUBMISSION RECEIV ED IN THE REGISTRY ON 1.8.2019. NEITHER ANY PERSON REPRES ENTING THE ASSESSEE APPEARED NOR HAS ANY REQUEST SEEKING [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 4 ADJOURNMENT BEEN FILED. THEREFORE, THE APPEAL IS TAKEN UP IN THE ABSENCE OF THE ASSESSEE AND TO BE DECIDED ON TH E BASIS OF MATERIAL AVAILABLE ON RECORD. ASSESSEE FILED W RITTEN SUBMISSION, WHICH IS REPRODUCED AS UNDER: [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 5 4. THE LD. D.R. OPPOSED THESE SUBMISSIONS AND SUPPORTED THE IMPUGNED ORDER. LD. CIT(DR) ARGUED TH AT THERE IS NO ILLEGALITY IN THE ORDER OF THE LD. PR. C IT. LD. CIT(DR) SUBMITTED THAT THE ASSESSING OFFICER FAILED TO [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 6 EXAMINE THIS ASPECT AND MECHANICALLY ALLOWED THE CLAIM OF DEPRECIATION. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS ON RECORD. THE LD. PR. CIT HAS DECIDED THE ISSUE AS UNDER: [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 7 [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 8 6. THE CONTENTION OF THE ASSESSEE IS THAT THE A.O. HAS ADOPTED ONE OF THE PLAUSIBLE VIEW. IT IS STATED THAT T HE SOLAR GENERATORS WERE PURCHASED DURING THE FINANCIAL YE AR [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 9 2012-13 AND ALSO INSTALLED DURING THE FINANCIAL YEAR 2012 - 13. IT IS ALSO STATED THAT THESE GENERATORS WERE PUT T O USE FOR BUSINESS IN THE FINANCIAL YEAR 2012-13 ITSELF. IT IS FURTHER STATED THAT THE ASSESSEE HAS MADE PAYMENT OF THE SALE CONSIDERATION WITHIN THE FINANCIAL YEAR 2012-13 EXC EPT A SUM OF RS.59,48,030/- WHICH WAS PAID ON 31.3.2013. THE ASSESSEE HAS NOT FILED ANY EVIDENCE SUPPORTING THI S CLAIM BEFORE US. IN THE ABSENCE OF THE REQUISITE EVID ENCE IN SUPPORT OF THE CLAIM THAT THE SOLAR GENERATORS WERE PURCHASED, INSTALLED, PUT TO USE FOR BUSINESS AND THE PART PAYMENT OF THE SAME WAS ALSO PAID DURING THE FINANCIAL YEAR 2012-13. WE DO NOT SEE ANY REASON TO INTERFERE W ITH THE FINDING OF THE LD. PR. CIT. GROUND RAISED IN TH E APPEAL IS DISMISSED. [ITA NO.257/IND/2018] [M/S. GUPTA SONS, BHOPAL] 10 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO.257/IND/2018 FOR THE A.Y. 2013-14 IS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 11 . 10.2019. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER J UDICIALMEMBER INDORE; DATED : 11/10/2019 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE