M/s Century Galaxy Developers Limited , Bangalore V. Deputy Commissioner of Income Tax Circle-2(1)(1), Bangalore

ITA 3349/BANG/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8145 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 19-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S RAMASUBRAMANYAM
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 3349 /BANG/201 8 ASSESSMENT YEAR : 20 1 3 - 1 4 M/S. CENTURY GALAXY DEVELOPERS LTD., NO.2, DIAMOND DISTRICT, AIRPORT ROAD, KODIHALLY, BANGALORE 560 064. PAN : AAACC 9836 F VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2(1)(1), BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI. S. RAMASUBRAMANYAM, CA REVENUE BY : SHRI. R. N. SIDDAPPAJI, ADDL. CIT DATE OF HEARING : 26 . 06 .201 9 DATE OF PRONOUNCEMENT : 19 . 07 .201 9 O R D E R PER JASON P BOAZ, ACCOUNTANT MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-2, BANGALORE DATED 30.10.2018 FOR ASSESSMENT YEAR 2013-14. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE AS UNDER: 2.1 THE ASSESSEE, A COMPANY ENGAGED IN THE BUSINESS OF MAINTENANCE OF APARTMENTS, FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2013-14 ON 28.09.2013 DECLARING LOSS OF RS.(-) 6,15,62,779/-. THE CASE WAS SELECTED FOR SCRUTINY FOR THIS ASSESSMENT YEAR AND THE ASSESSMENT WAS CONCLUDED UNDER SECTION 143(3) OF THE ITA NO. 3349/BANG/2018 PAGE 2 OF 4 INCOME-TAX ACT, 1961 (IN SHORT THE ACT) VIDE ORDER DATED 24.03.2016 WHEREIN THE ASSESSEES INCOME WAS ASSESSED AT (-)RS.1,69,35,259/- IN VIEW OF THE DISALLOWANCE OF THE ASSESSEES CLAIM OF DEPRECIATION ON BUILDING AMOUNTING TO RS.4,46,27,520/-. ON APPEAL, THE CIT(A)-2, BANGALORE, DISMISSED THE ASSESSEES APPEAL VIDE ORDER DATED 30.10.2018. 3.1 AGGRIEVED BY THE ORDER OF CIT(A)-2, BANGALORE, DATED 30.10.2018 FOR ASSESSMENT YEAR 2013-14, THE ASSESSEE FILED THIS APPEAL WHEREIN IT HAS RAISED THE FOLLOWING GROUNDS:- ITA NO. 3349/BANG/2018 PAGE 3 OF 4 3.2 THE ONLY ISSUE RAISED IN THE GROUNDS PREFERRED IN THIS APPEAL (SUPRA), RELATED TO THE DISALLOWANCE OF THE ASSESSEES CLAIM OF DEPRECIATION ON BUILDINGS. IN THE COURSE OF HEARING THE LEARNED AR FOR THE ASSESSEE FAIRLY CONCEDED THAT THE ISSUE FOR ADJUDICATION IS SQUARELY COVERED AGAINST THE ASSESSEE BY THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2011-12 IN ITA NO.1306/BANG/2015 DATED 03.06.2016 (COPY PLACED ON RECORD); BY FOLLOWING THE DECISION OF CO-ORDINATE BENCH IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2003-04 IN ITA NO.999/BANG/2013. THE LEARNED AR SUBMITTED THAT THE ASSESSEE HAS PREFERRED APPEALS BEFORE THE HONBLE KARNATAKA HIGH COURT, AGAINST THE AFORESAID ORDERS OF THE TRIBUNAL (SUPRA), WHICH ARE PENDING DISPOSAL. 3.3.1 AFTER HAVING HEARD THE RIVAL SUBMISSIONS AND PERUSAL OF THE MATERIAL ON RECORD, WE FIND THAT THE ISSUE OF THE ASSESSEES CLAIM OF DEPRECIATION ON BUILDINGS IS SQUARELY COVERED AGAINST THE ASSESSEE BY THE DECISIONS OF THE CO-ORDINATE BENCHES OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2011-12 AND 2003-04. RESPECTFULLY FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2011-12 IN ITA NO.1306/BANG/2015 DATED 03.06.2016, WE UPHOLD THE ORDERS OF THE AUTHORITIES BELOW IN DISALLOWING THE ASSESSEES CLAIM OF DEPRECIATION ON BUILDINGS. CONSEQUENTLY, THE GROUNDS RAISED BY ASSESSEE ARE DISMISSED. 4. IN THE RESULT, THE ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013-14 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF JULY, 2019. SD/ - SD/ - (PAVAN KUMAR GADALE) JUDICIAL MEMBER (JASON P BOAZ) ACCOUNTANT MEMBER BANGALORE. DATED: 19 TH JULY, 2019. /NS/* ITA NO. 3349/BANG/2018 PAGE 4 OF 4 COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.