DCIT, Faridabad V. M/s. Maa Santoshi Grit Udyog, Rewari

ITA 4021/DEL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53056 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2003-2004
• Appeal Filed On: 05-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MONGA
• Assessee Lawyers: N O N E APP REJECTED
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH I DELHI ] BEFORE MS. DIVA SINGH, JM AND SHRI K. D. RANJAN , AM I. T. APPEAL NO. 4021 (DEL) OF 2011 ASSESSMENT YEAR : 2003-04. DY. COMMISSIONER OF INCOME-TAX, M/S. MAA SANTOSHI GRIT UDYOG, CENTRAL CIRCLE : II, VS. BEHIN D P N B BUILDING, F A R I D A B A D. QUTUBPUR, R E W A R I. P A N / G I R NO. AAD FM 0959 R. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY : N O N E [APP. REJECTED]; DEPARTMENT BY : SHRI A. K. MONGA, SR. D. R. ; O R D E R. PER K. D. RANJAN, AM : THIS APPEAL BY THE REVENUE FOR ASSESSMENT YEAR 200 3-04 ARISES OUT OF ORDER OF THE LD. CIT (APPEALS)-I, LUDHIANA. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE AS FOLLOWS:- 1. THE LD. CIT (APPEALS) HAS ERRED BOTH IN LAW AND ON FACTS OF THE CASE IN ALLOWING THE DEPRECIATION AT FULL RATE ON THE SA ME ASSETS BY TREATING BOTH THE FIRMS AS SEPARATE ENTITY PARTICULARLY WHEN THE EARL IER FIRM WHICH STAND DISSOLVED ON 11/03/2003 DOES NOT HOLD AND WAS NOT THE OWNER O F THOSE ASSETS AS ON 31 ST MARCH AND WAS, THUS, NOT ENTITLED FOR DEPRECIATION AS PER THE PROVISIONS OF THE ACT; 2. THE LD. CIT (APPEALS) HAS ERRED BOTH IN L AW AND ON FACTS OF THE CASE IN TREATING THE FIRM FOR TWO DIFFERENT PERIODS AS S EPARATE FIRMS BY IGNORING THE FACT THAT THE ALLEGED NEWLY CONSTITUTED FIRM AD MITTEDLY DID NOT HAVE A 2 I. T. APPEAL NO. 4021 (DEL) OF 2011 SEPARATE PAN WHICH IS MANDATORY REQUIREMENT TO CLAI M THE STATUS OF A SEPARATE FIRM; 3. THE LD. CIT (APPEALS) HAS ERRED BOTH IN L AW AND ON FACTS OF THE CASE IN DELETING THE ADDITION OF RS.7,38,925/- MADE BY T HE ASSESSING OFFICER BY ALLOWING THE DEPRECIATION ON THE SAME ASSETS AT FULL RATE. 3. NONE ATTENDED ON BEHALF OF THE ASSESSEE WHEN THE APPEAL CAME UP FOR HEARING. THE LD. SR. DR SUBMITTED AN APPLICATION FOR ADJOURNMENT WHICH W AS REJECTED AS THE TAX EFFECT IN THE APPEAL FILED BY THE ASSESSEE IS LESS THAN RS.3,00,000/-. HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA. NO. 128/2008 DATED 3/03/2011 HAS HELD AS UNDER:- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS.4,65,860/-. AS PER THE RECENT GUIDELINES OF THE CBDT, APPEAL IN THOSE CASES WHERE THE TAX EFFECT IS LESS THAN RS.10,00,000/- ARE NOT TO BE ENTERTAINED. THIS COURT IN THE CASE OF CIT, DELHI-III VS. M/S. P. S. JAIN & CO. BEING ITA. NO. 179/1991 DECIDED ON 02 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR W OULD ALSO APPLY TO THE PENDING CASES. 4. IN VIEW OF DECISION OF HONBLE DELHI HIGH COU RT, IT IS CLEAR THAT INSTRUCTION NO. 3/2011 DATED 9/02/2011 WILL ALSO APPLY TO ALL PENDI NG APPEALS. WE, THEREFORE, DISMISS THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON : 03 RD NOVEMBER, 2011. SD/- SD/- [ DIVA SINGH ] [ K. D. RANJAN ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 03 RD NOVEMBER, 2011. *MEHTA * 3 I. T. APPEAL NO. 4021 (DEL) OF 2011 COPY OF THE ORDER FORWARDED TO : - 1. APPELLANT. 2. RESPONDENT. 3. CIT, 4. CIT (APPEALS), 5. DR, ITAT, NEW DELHI. TRUE COPY. BY ORDER. ASSISTANT REGISTRAR, ITAT.