Biomatiques Identifaication Solution Pvt Ltd, Surat V. DCIT, Circle-1(1)(1), Surat

ITA 359/SRT/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0984 (ITAT-SURAT)
• Duration Of Justice: 3 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 21-08-2022
• Assessment Year: 2015-2016
• Appeal Filed On: 10-07-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation; Principle of natural justice; Additional depreciation
• Section: 143(3); 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM आयकर अपील सं./ITA No. 359/SRT/2019 Ǔनधा[रणवष[/Assessment Year: (2015-16) (Virtual Court Hearing) Biomatiques Identification Solution Pvt. Ltd., G-5, Ashray Building, Opp. Govindji Park-A, Umra, Surat-395007. Vs. The DCIT, Circle-1(1)(1), Surat. (Appellant) (Respondent) èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAFCB0539H Assessee by None. Respondent by Shri Vinod Kumar, Sr. DR Date of Hearing 22/08/2022 Date of Pronouncement 12/10/2022 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the Assessee, pertaining to Assessment Year (AY) 2015-16, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), [in short “the ld. CIT(A)”], in Appeal No. CAS/4/680/2018-19 dated 20.05.2019, which in turn arises out of an assessment order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 26.12.2017. 2. The grounds of appeal raised by the assessee are as follows: “1. That on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals)-III, Surat [here-in-after referred to as Ld. CIT(Appeals)] was not justified and grossly erred in not providing an additional opportunity to appellant of hearing of filing of information and documents from various parties. That on the facts and in the circumstances of the case, the Ld. CIT(Appeals) was not justified and grossly erred in confirming the action of the AO in confirming the order passed u/s. 143(3) of the I.T. Act, 1961 which is incomplete and also bad on facts. Page | 2 ITA 359/SRT/2019/AY.2015-16 Biomatiques Identification Solution Pvt. Ltd. 2. That on the facts and circumstances of the case, the Ld. CIT(Appeals) was not justified and grossly erred in confirming the action of the AO in by accepting the disallowance of excess depreciation amounting to Rs.42,68,445/- and reducing the loss which is incorrect and bad-in-law and needs to be deleted in the interest of natural justice and equity. 3. That the appellant craves leave to add, to amend, modify, rescind, supplement or alter any of the grounds stated here-in-above, either before or at the time of hearing of this appeal.” 3. Brief facts qua the issue are that M/s. Biomatiques Identification Solution Pvt. Ltd. is engaged in manufacturing of Iris Scanner. The original return of income for the assessment year under consideration was filed on 17.08.2015 declaring total loss of Rs.3,02,63,198/-. The assessee’s case was selected for limited scrutiny through CASS and accordingly notice under section 143(2) of the Income Tax Act was issued on 19.04.2016. During the course of assessment proceedings, in response to the query raised by the Deputy Commissioner of Income Tax, Circle 1(1)(1), Surat, the assessee has filed detailed submission together with relevant details, supporting documents and evidences and information in support of the assessee’s stand as well as details asked by the Assessing Officer. However, Assessing Officer rejected the contention of the assessee and disallowed the excess depreciation amounting to Rs.42,68,445/-. 4. Aggrieved by the order of Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A), who has confirmed the action of Assessing Officer, observing as follows: “5. The statement of facts & grounds of appeal are considered. In this case the Ld. AO noticed that assessee had claimed depreciation of Rs.70.85 lacs most of it being additional depreciation @60% on assets. When Ld. AO asked for details, it was found that personal & routine expenditures were included in cost of assets. Hence, Ld. AO issued show cause notice. The assessee admitted to it and revised its claim of depreciation to Rs.28,17,220/- by filling letter dated 22.12.2017, but further claimed Rs.29,22,725/- out of the balance Rs.42,68,445/- as revenue expenditure. The Ld. AO accepted the revised depreciation but has not allowed additional claim of revenue expenditure of Rs.29,22,725/-. Thus Ld. AO has made additional of Rs.42,68,445/-. It is seen that the Ld. AO has given clear finding that 1. The expenditure do not have any nexus to the assets or to business. 2. Expenses do not pertain to current year. Page | 3 ITA 359/SRT/2019/AY.2015-16 Biomatiques Identification Solution Pvt. Ltd. I have examined the issue and I find merit in finding by the Ld. AO. The assessee fails to demonstrate that the expenses are allowable as deduction under the I.T. Act. The addition is hereby confirmed, and grounds of appeal are dismissed.” 5. Aggrieved by the order of ld. CIT(A), the assessee is in appeal before us. 6. None appeared on behalf of the assessee. We have heard Learned Departmental Representative (Ld. DR) for the Revenue and carefully gone through the findings of the ld. CIT(A) and other material brought on record. We have gone through the above findings of Ld. CIT(A) and noted that Ld. CIT(A) has passed reasoned and speaking order. We do not find any infirmity in the order of ld. CIT(A). Hence, we dismiss the appeal of the assessee. 7. In the result, appeal filed by assessee is dismissed. Order is pronounced in the open court on 12/10/2022 by placing the result on the Notice Board. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat Ǒदनांक/ Date: 12/10/2022 SAMANTA Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // TRUE COPY // Assistant Registrar/Sr. PS/PS ITAT, Surat