DCIT, Circle-2(1), Cuttack V. Purvi Bharat Coal Products Private Limited, Cuttack

ITA 31/CTK/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 9919 (ITAT-CUTTACK)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 19-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: UNJHUNWALLA
• Keywords: Depreciation; Tax effect
• Section: 32

Judgement Text

P A G E 1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 31 /CTK/201 8 ASSESSMENT YEAR : 201 2 - 201 3 DCIT, CIRCLE 2(1), CUTTACK VS. M/S. PURVI BHARAT COAL PRODUCTS PVT. LTD., OSL TOWER, LINK ROAD, CUTTACK PAN/GIR NO. AADCP 1801 G (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : R.K.JHUNJHUNWALLA, AR REVENUE BY : SHRI SU BH ENDU D U TTA , DR DATE OF HEARING : 25 /0 9 / 2018 DATE OF PRONOUNCEMENT : 25 /0 9 / 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) , CUTTACK D ATED 27.10.2017 FOR THE ASSESSMENT YEAR 2012 - 2013. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) WAS NOT JUSTIFIED IN GRANTING DEPRECIATION OF RS.46,58,498/ - ON THE PLANT AND MACHINERY INSTALLED AT THE COKE OVEN PLANT OF THE ASSESSEE COMPANY IN CONTRAVENTION OF SECTION 32 OF THE ACT. 3. THE AS ST. COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), CUTTACK VIDE HIS LETTER DATED 6.9.2018 HAS SOUGHT PERMISSION OF THE BENCH ITA NO. 31/CTK/2018 ASSESSMENT YEAR : 2012 - 2013 P A G E 2 | 3 TO WITHDRAW THE APPEAL FILED BEFORE THE TRIBUNAL AS THE TAX EFFECT IS BELOW THE LIMIT OF RS.20 LAKHS PRESCRIBED BY THE CBDT CIRCULAR NO .3 OF 2018 DATED 11.7.2018 FOR FILING APPEAL BEFORE THE TRIBUNAL. THE SAID LETTER READS AS UNDER: SUB : WITHDRAWAL OF APPEAL IN CASE OF M/S. PURVI BHARAT COAL PRODUCTS PRIVATE LTD., PAN - AADCP1801G FOR THE A.Y.2012 - 13 - MATTER REGARDING. REF: LETTER NO.JCIT(ITAT)/CTK/2018 - 19/29 DT.30.08.2018. KINDLY REFER TO THE ABOVE. IN THIS CASE, RETURN OF INCOME WAS FILED BY THE ASSESSEE ON 28.09.2012 DECLARING LOSS AT RS.94,14,102/ - . HOWEVER, ON SCRUTINY ASSESSMENT U/S.143(3), THE LOSS WAS ASSESSED AT RS.47,55,604/ - AS A RESULT OF DISALLOWANCE OF CLAIM OF DEPRECIATION FOR RS.46,58,498/ - . SUBSEQUENTLY, THE ADDITION WAS DELETED BY THE LD.CIT (A) VIDE HIS ORDER DT.27.10.2017. THE POTENTIAL TAX EFFECT IN THIS CASE WORKS OUT TO RS. 13,97,549/ - , WHICH IS BELOW THE MONETARY LIMIT AS PER THE CIRCULAR NO.3/2018, DT. 11.07.2018. THE CASE IS NOT COVERED UNDER THE EXCEPTIONAL CLAUSE - 10 OF THE ABOVE CIRCULAR. THE DECISION OF WITHDRAWAL OF APPEAL FILED BEFORE THE HON'BLE ITAT MAY KINDLY BE CONSIDERED ACCORDINGLY. YOURS FAITHFULLY, SD/ (SA NJ EEB ROY) ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), CUTTACK. 4 . HENCE, WE DISMISS THE APPEAL OF THE REVENUE AS WITHDRAWN. ORDER PRONOUNCED ON 25 /0 9 /2018. S D/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 25 /0 9 /2018 ITA NO. 31/CTK/2018 ASSESSMENT YEAR : 2012 - 2013 P A G E 3 | 3 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR. PVT. SECRETARY, ITAT, CUTTACK 1. THE APPELLANT : DCIT, CIRCLE 2(1), CUTTACK 2. THE RESPONDENT: M/S. PURVI BHARAT COAL PRODUCTS PVT. LTD., OSL TOWER, LINK ROAD, CUTTACK 3. THE CIT(A) CUTTACK 4. PR.CIT - CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//