SINDHU RESETTLEMENT CORPORATION LTD, MUMBAI V. ASST CIT (OSD) 2(3), MUMBAI

ITA 3156/MUM/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 7759 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2017
• Appeal Filed By: Assessee
• Bench Allotted: E
• Next Hearing Date: 09-08-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 25-04-2013
• Court: TRIBUNAL
• Department Lawyers: VISHWAS MUNDHE
• Assessee Lawyers: R V CHANIYARI
• Keywords: Gift; Depreciation; Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER I.T.A. NO.3156/M/2013 (ASSESSMENT YEAR: 2009 - 2010 ) SINDHU RESETTLEMENT CORPORATION LTD., 1, PNB HOUSE, SIR P.M. ROAD, MUMBAI 400 001. / VS. ACIT (OSD) - 2 (3), AAYAKAR BHAVAN, MUMBAI 400 020. ./ PAN : AAACS6525P ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI R.V. CHANIYARI / RESPONDENT BY : SHRI VISHWAS MUNDHE, DR / DATE OF HEARING : 02 .03.2017 / DATE OF PRONOUNCEMENT : 17 .03.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 25.4.2013 IS AGAINST THE ORDER OF THE CIT (A) - 6, MUMBAI DATED 14.2.2013 FOR THE ASSESSMENT YEAR 2009 - 10. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE AO ERRED IN DISALLOWING EXPENSES OF RS. 24,55,900/ - U/S 37 OF THE ACT ON ACCOUNT OF GIFT TO SHAREHOLDERS AND INCREASING THE TOTAL INCOME ACCORDINGLY. THE HONBLE CIT (A) HAS ERRED IN CONFIRMING THE ACTION OF THE AO. THE AO BE DIRECTED TO ALLOW A DEDUCTION OF RS. 24,55,900/ - INCURRED ON ACCOUNT OF GIFT TO SHAREHOLDERS AND REDUCE THE TOTAL INCOME ACCORDINGLY. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD AO ERRED IN DISALLOWING EXPENDITURE OF RS. 19,11,162/ - ON ACCOUNT OF AMOUNT SPENT FOR CONSTRUCTION OF SHOPS AND HOUSES UNDER THE HEAD WORK IN PROGRESS TREATING THE SAME AS CAPITAL EXPENDITURE AND ALLOWING DEPRECIATION OF RS. 1,91,196/ - ON RS. 19,11,162/ - . THE LD CIT (A) ERRED IN DIRECTING THE AO TO VERIFY FACTS AND ALLOW DEDUCTION OF THE EXPENDITURE ACCORDINGLY. THE AO BE DIRECTED TO DELETE THE ADDITION MADE TO TOTAL INCOME OF RS. 19,11,162/ - AS WELL AS WITHDRAW DEPRECIATION OF RS. 1,19,196/ - ALLOWED TO THE APPELLANT COMPANY AND REDUCE THE TOTAL INCOME ACCORDIN GLY. 2. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BRIEFLY NARRATED THE FACTS OF THE CASE AND MENTIONED THAT SINCE THE AO GRANTED RELIEF ON THE ISSUES RAISED BEFORE THE TRIBUNAL, VIDE THE ABOVE EXTRACTED GROUNDS, THEREFORE ASSESSEE HAS NO GRIEVANCE. CON SIDERING THE SAME, ASSESSEE DESIRES TO WITHDRAW ITS APPEAL. 2 3. AFTER HEARING THE LD REPRESENTATIVES OF BOTH THE PARTIES, WE ALLOW THE ASSESSEE TO WITHDRAW ITS CASE. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE DISMISSED AS WITHDRAWN. 4. IN THE RESULT , APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNC ED IN THE OPEN COURT ON 17 TH MARCH, 201 7 . SD/ - SD/ - (SANDEEP GOSAIN) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 17.03 .201 7 . . ./ 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 . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI