ACIT, New Delhi V. M/s Surya Roshini Ltd., New Delhi

ITA 3818/DEL/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1236 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 07-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANSHU SHUKLA PANDEY
• Keywords: Depreciation; Cost of acquisition

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C : NEW DELHI BEFORE SHRI I.P.BANSAL, JM AND SHRI R.C.SHARMA, AM ITA NO.3818/DEL/2009 ASSESSMENT YEAR : 2006-07 ASSTT.COMMISSIONER OF INCOME TAX, CIRCLE-9(1), NEW DELHI. VS. M/S SURYA ROSHNI LIMITED, 5, PADMA TOWERS, RAJENDRA PLACE, NEW DELHI. PAN NO.AAACS3558C. (APPELLANT) (RESPONDENT) APPELLANT BY : SMT.ANSHU SHUKLA PANDEY, DR. RESPONDENT BY : SHRI RAVI PRATAP MALL. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 3.3.2009 WHEREIN FOLLOWING GROUND HAS BEEN TAKEN:- LD.COMMISSIONER OF INCOME TAX (APPEALS) ERRED, IN LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE, IN DELETING TH E ADDITION OF RS.25,82,376/- MADE BY THE AO ON ACCOUNT OF EXCESS CLAIM OF DEPRECIATION. 2. AT THE OUTSET, LEARNED AR PLACED ON RECORD THE O RDER OF THE ITAT IN ASSESSEES OWN CASE FOR THE IMMEDIATELY PRECEDING A Y 2004-05 & 2005-06, ORDER DATED 17.10.2008 AND 19.2.2008, WHEREIN EXACTLY SIM ILAR ISSUE HAS BEEN DEALT WITH AND DECIDED IN FAVOUR OF THE ASSESSEE AFTER HAVING THE FOLLOWING OBSERVATION:- AS IS EVIDENT FROM THE READING OF THE AFORESAID PR OVISIONS WHICH HAVE BEEN MADE APPLICABLE FOR AY 2003-04, THERE IS NOTHING CONTAINED THEREIN REQUIRING ADJUSTMENT OR REDUCTION OF THE WDV OF THE ASSETS WHICH HAS ALREADY BEEN ENHANCED AS A RES ULT OF FLUCTUATION IN FOREIGN EXCHANGE RATE IN THE EARLIER YEARS. ON THE OTHER HAND, THE PROVISO TO SECTION 43A SPECIFICALLY REQUIRES THAT A T THE TIME OF 2 MAKING THE FINAL ADJUSTMENT ON ACCOUNT OF INCREASE OR REDUCTION IN THE LIABILITY, THE ADDITION OR DEDUCTION FROM THE A CTUAL COST OR EXPENDITURE OR COST OF ACQUISITION MADE U/S 43A AS IT STOOD IMMEDIATELY BEFORE ITS SUBSTITUTION BY THE FINANCE ACT 2002 SHOULD BE TAKEN INTO ACCOUNT. IT THUS CLEARLY ENVISAGES T HAT THE ADJUSTMENT ALREADY MADE TO THE WDV OF THE ASSETS IN EARLIER YE ARS OWING TO FLUCTUATION IN FOREIGN EXCHANGE RATES ARE NOT TO BE DISTURBED SO ALSO THE WRITTEN DOWN VALUE OF THE ASSETS BROUGHT FORWAR D AFTER MAKING SUCH ADJUSTMENT AND AFTER DEDUCTING THEREFROM DEPRE CIATION AS ALLOWED IN THE EARLIER YEARS. IN OUR OPINION, THE ADJUSTMENT MADE BY THE ASSESSING OFFICER TO THE WDV OF THE ASSETS ON A CCOUNT OF ENHANCEMENT MADE THEREIN OWING TO FLUCTUATION IN FO REIGN EXCHANGE RATES IN THE EARLIER YEARS RELYING ON THE PROVISION S OF SECTION 43A THEREFORE WAS NOT TENABLE AND CONSEQUENTLY DISALLOW ANCE MADE BY HIM ON THIS COUNT OUT OF THE DEPRECIATION CLAIMED B Y THE ASSESSEE WAS NOT SUSTAINABLE. IN THAT VIEW OF THE MATTER, W E FIND NO INFIRMITY IN THE IMPUGNED ORDER OF LEARNED CIT(APPEALS) DELET ING THE SAID DISALLOWANCE MADE BY THE ASSESSING OFFICER AND UPHO LDING THE SAME, WE DISMISS GROUND NO.1 OF THE REVENUES APPEA L. 3. SIMILARLY, IN AY 2006-07, SIMILAR ISSUE HAD ARIS EN AND THE TRIBUNAL BY FOLLOWING THE DECISION OF THE TRIBUNAL DATED 17.10. 2008 DISMISSED THE APPEAL OF THE REVENUE. 4. AS THE FACTS AND CIRCUMSTANCES DURING THE YEAR U NDER CONSIDERATION ARE IN PARI-MATERIA, RESPECTFULLY FOLLOWING THE DECISION O F THE COORDINATE BENCH IN ASSESSEES OWN CASE AS DISCUSSED HEREINABOVE, THE A PPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 5 TH NOVEMBER, 2009. SD/- SD/- (I.P.BANSAL) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :05.11.2009. VK. 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR