Deputy Commissioner of Income TAx Circle-6(1)(1), Bangalore V. M/s SI3D Systems Pvt Ltd , Bangalore

ITA 340/BANG/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7808 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-09-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 05-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: N O N E
• Keywords: Depreciation; Opportunity of being heard; Set aside
• Section: 13

Judgement Text

ITA NO.340/BANG/2018 M/S. SI3D SYSTEMS PVT. LTD., BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.340/BANG/2018 ASSESSMENT YEAR: 2012 13 DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-6(1)(1) BENGALURU VS. M/S. SI3D SYSTEMS PVT. LTD. NO.15, KRISHIK SARVODAYA FOUNDATION GOLD COURSE ROAD KODIHALLY BANGALORE 560 008 PAN NO : AAPCS5701G APPELLANT RESPONDENT APPELLANT BY : SHRI PRIYADARSHI MISHRA, D.R. RESPONDENT BY : N O N E DATE OF HEARING : 01.09.2021 DATE OF PRONOUNCEMENT : 01.09.2021 O R D E R PERB.R. BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE O RDER DATED 28.9.2017 PASSED BY LD. CIT(A) 6, BENGALURU AND IT RELATES TO ASSESSMENT YEAR 2012-13. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN DELETING THE DISALLOWANCE OF DEPRE CIATION CLAIMED BY THE ASSESSEE. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THO UGH, THE NOTICE OF HEARING WAS SENT TO THE ASSESSEE ON SEVER AL OCCASIONS. HENCE, WE PROCEED TO DISPOSE OF THE APPEAL EX-PARTE WITHOUT HEARING THE ASSESSEE. ITA NO.340/BANG/2018 M/S. SI3D SYSTEMS PVT. LTD., BANGALORE PAGE 2 OF 3 3. THE APPEAL FILED BY THE REVENUE IS BARRED BY LIM ITATION BY 7 DAYS. THE REVENUE HAS FILED A PETITION REQUESTING TO THE BENCH TO CONDONE THE DELAY. HAVING REGARD TO THE SUBMISSION S MADE ON THE PETITION, WE ARE OF THE VIEW THAT THERE IS REASONAB LE CAUSE FOR THE DELAY AND ACCORDINGLY CONDONE IT. 4. THE LD. D.R. SUBMITTED THAT THE ASSESSING OFFICE R DISALLOWED THE DEPRECIATION CLAIMED ON THE REASONING THAT THE ASSESSEE HAS NOT COMMENCED COMMERCIAL PRODUCTION DURING THE YEAR UND ER CONSIDERATION. HOWEVER, THE LD. CIT(A) HAS ALLOWED THE CLAIM BY PASSING A CRYPTIC ORDER, OBSERVING THAT THE BALANCE SHEET AS ON 31.3.2012 DISCLOSES AN INVENTORY AMOUNT OF RS.2,52, 82,537/-. THE LD. D.R. SUBMITTED THAT THE LD. CIT(A) HAS NOT GIVE N ANY FINDING AS TO WHETHER THE ASSESSEE HAS COMMENCED COMMERCIAL PR ODUCTION OR NOT. HENCE HIS ORDER LACKS PROPER REASONING. ACCO RDINGLY, HE PRAYED THAT THE MATTER MAY BE RESTORED TO THE FILE OF LD. CIT(A) FOR EXAMINING THE ISSUE AFRESH. 5. WE FIND MERIT IN THE SUBMISSION OF LD. D.R. ADM ITTEDLY, THE LD CIT(A) HAS PASSED A CRYPTIC ORDER AND HAS ALLOWE D THE APPEAL OF THE ASSESSEE BEFORE HIM ONLY FOR THE REASON THAT TH ERE WAS AN INVENTORY OF RS.2,52,82,537/-. THE LD. CIT(A) HAS NOT ADDRESSED THE ISSUE WHETHER THE ASSESSEE HAS COMMENCED COMMER CIAL PRODUCTION DURING THE YEAR OR NOT. IN THE ABSENCE OF FINDING ON THE ABOVE SAID ISSUE, IN OUR VIEW, IT WOULD BE DIFFICUL T TO ALLOW THE CLAIM OF THE ASSESSEE, MEANING THEREBY, THE LD. CIT(A) HA S NOT GIVEN PROPER REASONS TO ALLOW THE CLAIM OF THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY HIM AND RESTORE THIS ISSUE TO HIS FILE WITH THE DIRECTION TO PASS A REASONED ORDER AFTER E XAMINING THE ITA NO.340/BANG/2018 M/S. SI3D SYSTEMS PVT. LTD., BANGALORE PAGE 3 OF 3 FACTS RELATING TO THE ISSUE AND AFTER AFFORDING ADE QUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST SEPT, 2021 SD/- (BEENA PILLAI) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 1 ST SEPT, 2021. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.