M/s. Mula Pravara Electric Co-op Society Ltd, Ahmednagar V. Assistant Commissioner of Income tax,

ITA 2853/PUN/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0217 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 16-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK MESHR AM
• Keywords: Depreciation; Business expenditure; Set aside
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, J UDICIAL MEMBER . / ITA NO . 2853 /PUN/201 6 / ASSESSMENT YEAR : 201 3 - 14 M/S. MULA PRAVARA ELECTRIC CO - OP. SOCIETY LTD., WARD NO. 7, BELAPUR ROAD, TAL. - SHRIRAMPUR, DISTT. - AHMEDNAGAR - 413709 PAN : AAAAT3309A ....... / APPELLANT / V/S. THE ASSISTANT COMMISSIONER OF INCOME TAX, AHMEDNAGAR CIRCLE, AHMEDNAGAR / RESPONDENT ASSESSEE BY : S HRI ABHAY SHASTRI REVENUE BY : SHRI ABHISHEK MESHRAM / DATE OF HEARING : 1 6 - 09 - 2019 / DATE OF PRONOUNCEMENT : 18 - 09 - 2019 / ORDER PER S.S. VISWANETHRA RAVI, JM : THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 24 - 10 - 2016 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 2 , PUNE FOR ASSESSMENT YEAR 201 3 - 14. 2 ITA NO. 2853/PUN/2016, A.Y. 2013 - 14 2. THE ONLY ISSUE IS TO BE DECIDED AS TO WHETHER THE COMMISSIONER OF INCOME TAX (APPEALS) IS JUST IFIED IN CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OF BUSINESS EXPENSES BY HOLDING THAT THE ASSESSEE DISCONTINUED ITS BUSINESS AND NO SUCH EXPENDITURE IS ALLOWABLE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. HEA RD BOTH PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. SHRI ABHAY SHASTRI, LD. AR SUBMITTED THAT THE ISSUE RAISED IN THE GROUNDS OF APPEAL IS COVERED BY THE ORDER OF THIS TRIBUNAL FOR ASSESSMENT YEAR 2012 - 13, THE SAME WAS PLACED ON RECORD, AND THERE IS NO DISPUTE BY SHRI ABHISHEK MESHRAM, LD. DR IN THIS REGARD. WE FIND THAT THE SIMILAR ISSUE HAS BEEN DECIDED BY THIS TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2012 - 13 IN ITA NO. 1776/PUN/2016 V IDE ITS ORDER DATED 28 - 09 - 2018 , WHICH IS PLACED ON RECORD . ON PERUSAL OF THE SAME , AS WE DISCUSSED ABOVE, THE ISSUE RAISED IN THE YEAR UNDER CONSIDERATION IS SIMILAR TO THE ISSUE RAISED FOR ASSESSMENT YEAR 2012 - 13. THIS TRIBUNAL DID NOT AG REE WITH THE CO NTENTIONS OF RESPONDENT REVENUE I.E. THE ASSESSEE IS NOT ENTITLED TO CLAIM BUSINESS EXPENDITURE AS THE ASSESSEE HAS NO INTENTION TO CONTINUE THE BUSINESS OF POWER DISTRIBUTION AND HELD ALL THE ADMINISTRATIVE EXPENSES IS ALLOWABLE AS BUSINESS EXPENDITURE. I N VIEW OF THE SAME, WE HOLD THAT THE ASSESSEE IS ENTITLED TO CLAIM ALL THE EXPENDITURE INCLUDING DEPRECIATION AND CONSEQUEN TIAL BENEFIT OF CARRY FORWARD CURRENT YEAR BUSINESS LOSS. THUS, THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) IS NOT JUSTIFIED A ND IT IS SET ASIDE. THUS, GROUND NOS. 1 AND 2 RAISED BY THE ASSESSEE ARE ALLOWED. 3 ITA NO. 2853/PUN/2016, A.Y. 2013 - 14 4. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH SEPTEMBER, 2019. SD/ - SD/ - ( R.S. SYAL ) ( S.S. VISWANETHRA RAVI ) VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 18 TH SEPTEMBER, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 2, PUNE 4. THE PR. COMMISSIONER OF INCOME TAX - 1, PUNE 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE