INCOME TAX OFFICER-8(2)-3, MUMBAI V. NUTECH CORPORATE SERVICES P.LTD. (FORMERLY KNOWN AS IIT CAPITAL SERVICES LTD.), MUMBAI

ITA 2769/MUM/2009

• Counselvise Citation: 276919914 RSA 2009
• Duration Of Justice: 3 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-06-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 29-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K B MENON
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI BEFORE SHRI B.R. MITTAL, JUDICIAL MEMBER AND SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO. 2769/MUM/2009 ASSESSMENT YEAR 2005-06 INCOME TAX OFFICER 8(2)(3), R.NO. 213, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020. VS. NUTECH CORPORATE SERVICES P. LTD., (FORMERLY KNOWN AS IIT CAPITAL SERVICES LTD.,) RAJABAHADUR MANSION, 2 ND FLOOR, 28, B.S. MARG, MUMBAI 400 001. PAN: AAACI 3356 A (APPELLANT ) (RESPONDEN T) REVENUE BY : SHRI P.K.B. MENON ASSESSEE BY : NONE DATE OF HEARING : 28-06-2012 DATE OF PRONOUNCEMENT : 04-07-2012 ORDER PER RAJENDRA, A.M. FOLLOWING GROUNDS OF APPEAL WERE FILED BY THE APPELLANT AGAINST THE ORDER DATED 03-02-2009 OF THE CIT(A)-VIII, MUMB AI: O N THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN ALLOWING THE CLAIM OF D EPRECIATION OF RS.64,15,914/- ON LEASING OF ASSETS CLAIMED BY THE ASSESSEE WITHOUT APPRECIATING THE FACTS OF THE CASE. ITA NO. 2769/MUM/2009 NUTECH CORPORATE SERVICES P. LTD., 2 THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUND TO BE SET ASIDE AND THAT OF THE ITO/AC/DCJT BE RESTORED. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GR OUNDS OR ADD A NEW GROUND WHICH MAY BE NECESSARY. 2. ON 28-06-2012, WHEN CASE WAS CALLED FOR HEARING NOB ODY APPEARED ON BEHALF OF THE RESPONDENT COMPANY. DR R ELYING UPON THE ORDER OF THE ASSESSING OFFICER (AO) SUBMITTED THAT DEPRECIATION ALLOWED BY THE FIRST APPELLATE AUTHORITY (FAA) WAS NOT AS PER THE PROVISIONS OF LAW. 3. DURING THE ASSESSMENT PROCEEDINGS AO FOUND THAT THE ASSESSEE COMPANY HAD EARNED INCOME FROM LEASING, HIRE PURCHA SE, MERCHANT BANKING AND OTHER FINANCIAL ACTIVITIES AND THE LEAS E RENTALS REFLECTED IN THE P&L ACCOUNT RELATED TO ASSETS PURCHASED AND LEA SED OUT IN THE EARLIER YEARS. HE ASKED THE ASSESSEE TO EXPLAIN AS TO WHY THE CLAIM FOR DEPRECIATION SHOULD NOT BE DISALLOWED. AFTER CONSID ERING THE REPLY OF THE ASSESSEE,HE DISALLOWED THE ASSESSEES CLAIM FOR DEPRECIATION ON LEASED ASSETS AMOUNTING TO RS. 64,15,9141/-, ON THE BASIS OF FINDINGS IN THE PAST. 4. ASSESSEE PREFERRED AN APPEAL BEFORE THE FAA. AFTER CONSIDERING THE ORDERS OF HIS PREDECESSOR FOR EARLIER PERIOD HE RESTORED THE MATTER TO THE FILE OF THE AO OBSERVING AS UNDER : SINCE THERE IS NO CHANGE IN THE FACTS OF THE CASE A ND THE LEGAL POSITION, I HAVE NO REASON TO DIFFER FROM THE DECIS ION OF MY PREDECESSOR. KEEPING IN VIEW ALL THESE FACTS AND CI RCUMSTANCES, THE ASSESSING OFFICER IS DIRECTED TO RE COMPUTE THE CLA IM OF DEPRECIATION BY FOLLOWING THE DIRECTION GIVEN ABOVE IN THE APPEL LATE ORDER FOR A.Y 1999-2000. THIS GROUND IS ADJUDICATED ACCORDINGLY. 5. FROM THE ABOVE ORDER OF THE FAA IT IS CLEAR THAT FA A HAD NOT ALLOWED THE CLAIM OF DEPRECIATION ON LEASING OF AS SETS CLAIMED BY THE ASSESSEEAS MENTIONED IN GROUND NO.1 OF THE APPEAL MEMO. AS THE GROUND IS NOT ARISING OUT OF THE ORDER OF THE FAA, WE DISMISS THE ITA NO. 2769/MUM/2009 NUTECH CORPORATE SERVICES P. LTD., 3 APPEAL FILED BY THE AO. HE WILL BE FREE TO FILE FR ESH APPEAL, IF HE DESIRES TO DO SO. APPEAL FILED BY THE AO STANDS REJECTED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH JULY, 2012 SD/- SD/- (B.R. MITTAL) (RAJENDRA) JUDICIAL MEMBER AC COUNTANT MEMBER MUMBAI, DATE 4 TH JULY, 2012 TNMM COPY TO: 1. ASSESSEE 2. RESPONDENT 3. THE CONCERNED CIT (A) 4. THE CONCERNED CIT 5. DR B BENCH, ITAT, MUMBAI 6. GUARD FILE (TRUE COPY) BY ORDER ASST. REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI