PARLE PET P.LTD, MUMBAI V. DCIT 8(2), MUMBAI

ITA 2570/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2758 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: J
• Assessment Year: 2005-2006
• Appeal Filed On: 05-05-2015
• Court: TRIBUNAL
• Department Lawyers: C W ANGOLWKAR SR
• Assessee Lawyers: NIMESH JAIN
• Keywords: Business income; Depreciation; Principle of natural justice
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER I.T.A. NO.2570/M/2015 (ASSESSMENT YEAR: 2005 - 2006 ) M/S. PARLE PET PVT LTD., (NOW MERGED WITH PARLE AGRO PVT LTD.,) WESTERN EXPRESS HIGHWAY, CHAKALA, ANDHERI (E), MUMBAI 400 099. / VS. DCIT - 8(2), MUMBAI. ./ PAN : AABCP9640D ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI NIMESH JAIN / RESPONDENT BY : SHRI C.W. ANGOLWKAR, SR. AR / DATE OF HEARING : 18.07 .2016 / DATE OF PRONOUNCEMENT : 1 8.07 .2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 5.5.2015 IS AG AINST THE ORDER OF THE CIT (A) - 17 , MUMBAI DATED 26.02.2015 FOR THE ASSESSMENT YEAR 2005 - 2006 . 2. IN THIS APPEAL, ASSESSEE RAISED SEVEN GROUNDS IN TOTO AND THEY RELATE TO (I) VIOLATION OF PRINCIPLES OF NATURAL JUSTICE; (II) ADDITION OF LTCG AMOUNTING TO RS. 1,50,57,183/ - ; (III) DISALLOWANCE OF DEPRECIATION AMOUNTING TO RS. 3,07,600/ - ; (IV) DISALLOWANCE OF AMORTIZATION EXPENDITURE OF RS. 1 7,17,462/ - ; (V) DISALLOWANCE OF LEGAL AND PROFESSIONAL EXPENDITURE OF RS. 1,80,745/ - ; (VI) DISALLOWANCE OF OTHER EXPENDITURE OF RS. 3,36,862/ - AND (VII) TREATING STCG OF RS. 36,33,874/ - AS BUSINESS INCOME. GROUNDS NO. (II) TO (VII) ARE RAISED WITHOUT PREJ UDICE TO GROUND NO.(I). 3. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BRIEFLY NARRATED THE FACTS OF THE CASE AND BROUGHT OUR ATTENTION TO THE ORDER OF THE TRIBUNAL IN ITA NO. 4248/M/2010 (AY 2005 - 2006 ), DATED 17.02.2016 , COPY OF WHICH IS PLACED 2 ON RECORD AND MENTIONED THAT VIDE THE SAID ORDER, THE TRIBUNAL QUASHED THE REVISION ORDER DATED 25.03.2010 OF THE CIT MADE U/S 263 OF THE ACT. THEREFORE, CONSIDERING THE SAID TRIBUNALS ORDER (SUPRA), THE FRESH ASSESSMENT ORDER MADE U/S 143(3) R.W.S 263 OF THE ACT , DATED 15.102010 BECOMES INFRUCTUOUS. 4 . AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE SAID TRIBUNALS ORDER (SUPRA), DATED 17.02.2016, WHEREIN ONE OF US (AM) IS A PARTY TO THE SAID ORDER, WE FIND, VIDE PARA 18 , THE TRIBUNAL QUASHED THE REVISION ORDER OF THE CIT. CONSIDERING THE SIGNIFICANCE OF THE SAID ORDER FOR THE SAKE OF COMPLETENESS OF THIS ORDER, THE RELEVANT LINES ARE EXTRACTED AS UNDER: - 18. NOW LET US, CONSIDER THE GROUND NO.1 IF THE ORDER PASSED BY AO IS ERRONEOUS OR PREJ UDICIAL TO THE INTEREST OF REVENUE. WE HAVE ALREADY GIVEN OUR OBSERVATION IN GROUND NO.2 TO 9 RAISED IN THE PRESENT APPEAL AND THE RESULT OF ALL THE GROUNDS ARE IN FAVOUR OF THE ASSESSEE, HENCE, THE GROUND NO.1 RAISED IN THE PRESENT APPEAL IS ALSO ALLOWED IN FAVOUR OF THE ASSESSEE AND WE HOLD THAT CIT ERRED IN HOLDING THE ORDER OF THE AO AS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE ARE LIABLE TO BE QUASHED. 5 . CONSIDERING THE ABOVE DECISION OF THE TRIBUNAL, THE FRESH ASSESSMENT ORDER MADE BY THE AO DOES NOT HAVE LEGS TO STAND. CONSEQUENTLY, THE APPEAL FILED BY THE ASSESSEE BECOMES INFRUCTUOUS. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH JULY, 2016. S D / - S D / - ( SANJAY GARG ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 18 .07 .2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . 3 //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI