ACIT,Cir.18(1), V. Worldtex Ltd.,

ITA 32/DEL/2003

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3535 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 28-07-2010
• Assessment Year: 1997-1998
• Appeal Filed On: 03-01-2003
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K CHAND
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI K.G. BANSAL, ACCOUNTANT MEMBER I.T.A NO. 32/DEL/03 ASSTT. YEAR 1997-98 ACIT, CIR, 18(1), VS. M/S. WORLDTEX LIMITED, NEW DELHI. 2213, GURDWARA ROAD, KAROL BAGH, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI N.K. CHAND, DR RESPONDENT BY: NONE ORDER PER RAJPAL YADAV, JM: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LD. CIT(A) DATED 17 TH APRIL, 2000 PASSED FOR ASSTT. YEAR 1997-98. THE SO LITARY GRIEVANCE OF THE REVENUE IS THAT LD. CIT(A) HAS ERR ED IN DELETING THE DISALLOWANCE OF RS. 9,33,946/- OUT OF DEPRECIATION CLAIM. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HA S FILED ITS RETURN OF INCOME ON 29.11.96 DISCLOSING A NET LOSS OF RS. 78, 85,416/-. THE ASSESSEE AT THE RELEVANT TIME WAS ENGAGED IN THE MA NUFACTURE AND EXPORT OF FABRICS. IT HAD AVAILED LOAN IN FOREIGN E XCHANGE FOR ACQUIRING ITA NO. 32/DEL/03 ASSTT. YEAR 1997-98 2 PLANT AND MACHINERY. AT THE END OF THE YEAR ASSESSE E HAS ENHANCED THE VALUE OF ITS PLANT AND MACHINERY ON ACCOUNT OF FORE IGN EXCHANGE RATE FLUCTUATION. THE ASSESSEE HAS CLAIMED DEPRECIATION ON THE ENHANCED VALUE. THIS WAS DISALLOWED TO THE ASSESSEE BY THE A O. 3. ON APPEAL LD. CIT(A) HAS DELETED THE DISALLOWANC E ON THE GROUND THAT SIMILAR CLAIM WAS MADE BY THE ASSESSEE IN ASST T. YEAR 1996-97. HE HAS DELETED THE DISALLOWANCE IN ASSTT. YEAR 1996-97 . IN ANOTHER WORDS LD. CIT(A) HAS NOT DISCUSSED THE ISSUE INDEPENDENT LY IN THIS YEAR RATHER FOLLOWED THE ORDER OF THE LD. CIT(A) IN ASSTT. YEAR 1996-97 IN APPEAL NO. 232/2001-2002 DATED 14 TH JANUARY, 2002. 4. IN RESPONSE TO THE NOTICE OF HEARING NO-ONE HAS COME ON BEHALF OF THE ASSESSEE. LD. DR BROUGHT IT TO OUR NOTICE THAT IN ASSTT. YEAR 1996-97. ORDER OF THE LD. CIT(A) HAS BEEN UPHELD BY THE ITAT IN ITA NO. 3776/D/2002. HE POINTED OUT THAT IN THAT YEAR DEPRE CIATION WAS DISALLOWED AT RS. 2,61,933/-. THE ITAT HAS UPHELD T HE DELETION BY FOLLOWING THE SPECIAL BENCHS DECISION OF THE ITAT IN THE CASE OF OIL & NATURAL GAS CORPORATION (ONGC) VS. DCIT 83 ITD 151 . 5. WITH ASSISTANCE OF LD. DR WE HAVE GONE THROUGH T HE RECORD CAREFULLY AND PERUSED THE ORDER OF THE ITAT IN ASST T. YEAR 1996-97. WE FIND THAT ISSUE IS SQUARELY COVERED IN FAVOUR OF TH E ASSESSEE BY THE SAID ORDER. ITAT HAS FOLLOWED THE ORDER OF SPECIAL BENCH IN THE CASE OF ONGC ITA NO. 32/DEL/03 ASSTT. YEAR 1997-98 3 WHEREIN IT HAS BEEN HELD THAT VALUE OF FIXED ASSET GOT INCREASED OR DECREASED ON ACCOUNT OF FLUCTUATION IN THE EXCHANGE RATE ON THE BASIS OF LIABILITY INCURRED. RESPECTFULLY FOLLOWING THE ORDE R OF THE TRIBUNAL IN THE ASSESEES OWN CASE WE DO NOT FIND ANY MERIT IN THIS APPEAL IT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH JULY, 2010. SD/- [K.G. BANSAL] [RAJPAL YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER VEENA DATED: 28.7.2010 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT