Nagaur Water Supply Co. Pvt. Ltd., Ahmedabad V. The DCIT, Circle-3(1)(1), Ahmedabad

ITA 41/AHD/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8368 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 01-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; TDS; Set aside
• Section: 144; 10; 43B; 40(a)(ia)

Judgement Text

, ‘A’ । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMEBR & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR आयकर अपील सं./I.T.A. No. 41/Ahd/2018 ( Assess ment Ye ar : 2014-15) M / s. Na ga ur Wat e r Su pp ly C o. P vt. L t d. H. No . 9 & 10 , Si g ma Co rp ora te H ou se , S ind hu Bh ava n Ro ad , B/ H. Ra jp at h Cl ub, A h med ab ad - 38 00 54 / V s . DC IT Cir cl e -3( 1) (1 ), 4 t h F lo or , “ B” W in g , Pra t ya k sh ka r Bh ava n, A mba wa di, A h med aba d - 38 00 15 यी ल सं./ ीआ आर सं./P A N / G IR N o . : A A C C N 7 4 0 3 R (अपील Appellant) . . ( य / Respondent) अपील र स /Appellant by : No ne य क र स / Respondent by : Shri S. K. Dev, Sr. D.R. स क र D a t e o f H e a r i n g 04/07/2022 !"# क र /D a t e o f P r o n o u n c e m e n t 12/07/2022 ORDER PER MAHAVIR PRASAD, JM: The appeal has been preferred by the assessee against the order of the Commissioner of Income Tax (Appeals)-7, Ahmedabad (‘CIT(A)’ in short) vide Appeal No. CIT(A)-7/256/16-17 dated 18.10.2017 arising in the assessment order dated 01.12.2016 passed by the Assessing Officer (AO) under s. 144 of the Income Tax Act, 1961 (the Act) concerning AY. 2014-15. ITA No. 41/Ahd/2018 [Nagaur Water Supply Co. Pvt. Ltd. Vs. DCIT] A.Y. 2014-15 - 2 - 2. The ground of appeal raised by assessee reads as under: “Ground 1: Disallowance of Depreciation of Rs. 31,30,871/-. Learned CIT has disallowed Depreciation of Rs. 31,30,871/- on addition value of Plant & Machinery of Rs. 2,08,72,474/-, stating that all the submissions made by the assessee are unsigned printout of his ledger account and bills were unstamped and unsigned. In fact all these ledger accounts and the copies of the bills are part of main letter of submission. The said letter is duly signed by Director of the company. All the Assets purchase are put to use during the year and hence the depreciation was claimed disallowed depreciation require to be allowed in this appeal. Ground 2: Disallowance of Administrative and General Expenses incurred of Rs. 14,88,673/-(20% of total expenses Rs.74,43,366/). Learned CIT has not taken into consideration ledger copy and sample vouchers and supporting documents, she has stated that all the documents are not signed. Our humble submission before your goodself is that all documents bearing part of covering letter which is duly signed by Director and as all these expenses are incurred for the purpose of business and the same should be allowed.” 3. In this case, assessee has claimed depreciation of plant and machinery and electric installation to the tune of Rs.31,30,871/- and assessee has claimed administrative and other expenses to the tune of Rs.14,88,673/-. As per Tax Audit Report in Form 3CD, the assessee company had deducted TDS on various payments, but not deposited in Government Account. The total payments comes to Rs.4,07,44,709/-. However, in the computation of income the assessee itself disallowed Rs.3,52,30,000/-. For this issue, assessee was asked to show cause as to why remaining Rs.55,14,709/- should not be disallowed under S.40(a)(ia) of the Act. Apart from abovementioned, as per Tax Audit Report, assessee company has not deposited the following statutory payment before the due date of filing of return under S.139(1) of the Act: a) TDS Rs.36,31,058 ITA No. 41/Ahd/2018 [Nagaur Water Supply Co. Pvt. Ltd. Vs. DCIT] A.Y. 2014-15 - 3 - b) Service Tax Rs.469,283 c) Professional Tax Rs.2,200 But, despite of the fact that several notices were issued by the learned AO, the assessee did not appear before him. Since, there was no cooperation on behalf of the assessee, therefore, under S.144 of the Act, learned AO disallowed the following amount: Total as per return of income (-)Rs.6,30,23,177/- Add: Additions/Disallowance as discussed above i) Depreciation u/s.32 31,30,871 ii) Administrative & Other Exp 14,88,673 iii) Disallowance u/s 40(a)(ia) 55,14,709 iv) Disallowance u/s 43B 4,02,541 Rs.1,05,36,794/- Assessed Total Loss Rs.(-)-5,24,86,383/- 4. Against the disallowance made by the AO, assessee preferred first statutory appeal before the learned CIT(A) but assessee did not file the complete detail before the learned CIT(A). Thereafter on the basis of material available on record, learned CIT(A) passed an order. 5. Now, assessee has come before us against the order of learned CIT(A) by way of a second statutory appeal. 6. We have heard learned DR. As it appears from the records that after filing of the appeal none appeared on behalf of the assessee. It appears from the record that there is no business transaction in the company since 2014. Therefore, in the interest of justice, we would like to give one more chance to the assessee as assessee suffered with loss and is not functioning. Therefore, in the interest of justice, we set aside this matter back to the file ITA No. 41/Ahd/2018 [Nagaur Water Supply Co. Pvt. Ltd. Vs. DCIT] A.Y. 2014-15 - 4 - of the learned CIT(A) subject to the condition that assessee shall deposit a penalty of Rs.1000/- with the department as assessee has wasted precious time of the lower authorities. The same shall be deposited with the Department within 60 days from the receipt of the order. 7. Since the proceedings have been restored to the file of the learned CIT(A), it will be proper to give direction him to provide reasonable opportunity to the assessee. If despite of providing opportunities, the assessee does not co-operate in the matter, then learned CIT(A) will be at liberty to adjudicate the matter as per law. 8. In the result, the appeal filed by the Assessee is allowed for statistical purposes. Sd/- Sd/- (ANNAP UR NA GUP TA) (MAHAVIR PRASAD) ACC OUNTANT MEMB ER JUDICIAL MEMBER Ahmedabad: Dated 12/07/2022 True Copy S.K.SINHA ेश ! " #े" / Copy of Order Forwarded to:- $. र / Revenue 2. आ दक / Assessee '. सं(ं)* आयकर आय + / Concerned CIT 4. आयकर आय + - अपील / CIT (A) .. / 0 1ीय 2 2 )*3 आयकर अपील य अ)*कर#3 अ45द ( द / DR, ITAT, Ahmedabad 6. 1 78 9 ल / Guard file. By order/आद श स 3 उप/स4 यक पं ीक र आयकर अपील य अ)*कर#3 अ45द ( द । This Order pronounced in Open Court on 12/07/2022