M/s. Asian Food Industries, Nadiad V. Asstt.Commissioner of Income Tax, Nadiad

ITA 3076/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7895 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 03-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: D K PARIKH
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 3076/AHD/2015 (ASSESSMENT YEAR: 2011-12) M/S. ASIAN FOOD INDUSTRIES OPP: ESCORT TRACTORS, N.H.NO.8, POST DABHAN 387320, TAL: NADIAD APPELLANT VS. ASSTT. C.I.T., KHEDA CIRCLE, NADIAD RESPONDENT PAN: AAEFA1288Q /BY ASSESSEE : SHRI D. K. PARIKH, A.R. /BY REVENUE : SHRI PRASOON KABRA, SR. D.R /DATE OF HEARING : 28.12.2017 /DATE OF PRONOUNCEMENT : 29.12.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011-12 ARISES AGAINST THE CIT(A)-2, VADODARAS ORDER DATED 10.08.2015 IN CASE NO. CAB/(A)-2/339/14-15, UPHOLDING ASSESSING OFFICERS ACTION IMPOSING PENAL TY OF RS.3,39,846/- IN RESPECT OF QUANTUM DISALLOWANCE OF DEPRECIATION CLAIM COMIN G TO RS.3,39,846/- IN ITA NO. 3076/AHD/15 [M/S. ASIAN FOOD INDUSTRIES VS. ACIT] A.Y. 2011-12 - 2 - ASSESSMENT ORDER DATED 26.03.2014, IN PROCEEDINGS U /S.271(1)(C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. WE HAVE HEARD BOTH THE PARTIES. CASE FILE PERUSED . 2. RELEVANT FACTS APPEAR TO BE IN A NARROWER COMPAS S. THE ASSESSEE HAD CLAIMED DEPRECIATION ON TWO TRUCKS PURCHASED WORTH RS.45,30,930/-. IT CLAIMED CONSEQUENTIAL DEPRECIATION ON THE GROUND THAT THE S AID ASSETS HAD BEEN PUT TO USE FOR ITS BUSINESS PURPOSES IN THE RELEVANT FINANCIAL YEA R. THE ASSESSING OFFICER NOTICED DURING SCRUTINY THAT THE ASSESSEE HAD PAID VEHICLE TAX ON 15.04.2011 FOLLOWED BY REGISTRATION THEREOF ON 19.04.2011. HE THEREFORE D ISALLOWED DEPRECIATION CLAIM IN QUESTION OF RS.3,39,846/-. THIS FOLLOWED THE IMPUG NED PENAL ACTION BEING FINALIZED IN PENALTY ORDER DATED 26.09.2014 HEREIN THE ASSESS ING OFFICER HELD THE ASSESSEE TO HAVE FURNISHED INACCURATE PARTICULARS AS WELL AS CO NCEALED ITS INCOME SO AS TO IMPOSE THE IMPUGNED PENALTY AS UPHELD IN THE LOWER APPELLATE PROCEEDINGS. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL CONTENTIONS AGAINST AND IN SUPPORT OF THE IMPUGNED PENALTY. THERE IS NO DI SPUTE THAT THE SOLE ISSUE RELEVANT TO THE IMPUGNED PENALTY IS THAT OF ASSESSEES DEPRE CIATION CLAIM ON THE ABOVE TWO TRUCKS DISALLOWED IN QUANTUM PROCEEDINGS ON THE GRO UND THAT THE SAME HAD BEEN REGISTERED IN APRIL 2011 (SUPRA). WE HOWEVER NOTIC E FROM THE CASE FILE THAT THE RELEVANT PURCHASE BILL AT PAGE 24 & 25 ARE DATED 22 .03.2011 I.E. IN RELEVANT PREVIOUS YEAR. IT THEREFORE EMERGES THAT THE ASSESSEES IMP UGNED DEPRECIATION CLAIM BASED ON THE FACT THAT THE RELEVANT TRUCKS FORMED PART OF THE BLOCK OF ASSETS IN QUESTION IMMEDIATELY AFTER PURCHASE IS NEITHER FALSE NOR BAS ELESS. THE QUESTION HOWEVER IS OF THE ENTITLEMENT YEAR ONLY. WE ACCORDINGLY ARE O F THE OPINION THAT THE SAME CANNOT BE TREATED AS EITHER FURNISHING OF INACCURAT E PARTICULARS OR CONCEALMENT OF INCOME U/S.271(1)(C) OF THE ACT AS PER HONBLE APEX COURTS LANDMARK JUDGMENT IN ITA NO. 3076/AHD/15 [M/S. ASIAN FOOD INDUSTRIES VS. ACIT] A.Y. 2011-12 - 3 - CIT VS. RELIANCE PETROPRODUCTS (P) LTD. 322 ITR 158 (SC). WE THEREFORE ACCEPT ASSESSEES ARGUMENTS. THE IMPUGNED PENALTY IS DELE TED. 4. THIS ASSESSEES APPEAL IS ALLOWED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 29 TH DAY OF DECEMBER, 2017.] SD/- SD/- ( MANISH BORAD ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL M EMBER AHMEDABAD: DATED 29/12/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0