ACIT circle I, V. Jitender Kumar Gupta,

ITA 4342/DEL/2007

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0001 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 27-04-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 31-10-2007
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: M P RASTOGI AVOCATE
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : C : NEW DELHI BEFORE SHRI R.S. SYAL, AM AND SHRI C.M. GARG, JM ITA NO.4342/DEL/2007 ASSESSMENT YEAR : 2002-03 ACIT, CIRCLE-I, MEERUT. VS. SHRI JITENDER KUMAR GUPTA, 219, RAILWAY ROAD, MEERUT. PAN AARPG5507B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI M.P. RASTOGI, AVOCATE DEPARTMENT BY : SHRI T. VASANTHAN, SR. DR DATE OF HEARING : 30.04.2015 DATE OF PRONOUNCEMENT : 05.05.2015 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 4.7.2007 IN RELATION TO THE ASSESSME NT YEAR 2002-03. 2. IT IS A RECALLED MATTER QUA THE ISSUE ASSAILING THE VIEW TAKEN BY THE LD. CIT(A) IN DIRECTING TO ADOPT VALUE OF THE DEPRE CIATED ASSETS AT RS.66,82,684 AS AGAINST RS.16,83,750 TAKEN BY THE A SSESSING OFFICER ITA NO.4342/DEL/2007 2 (AO) AND CONSEQUENTLY ALLOWING RELIEF OF DEPRECIAT ION AMOUNTING TO RS.15,51,163 BY IGNORING THE PROVISIONS OF SECTION 43(1) OF THE ACT. EARLIER, THE TRIBUNAL PASSED A COMBINED ORDER FOR THE INSTANT YEAR AS WELL AS THE IMMEDIATELY PRECEDING YEAR U/S 254(1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED `THE ACT) DECIDING T HIS ISSUE IN FAVOUR OF THE REVENUE, BY OVERTURNING THE ORDER OF THE LD. CI T(A) AND RESTORING THAT OF THE AO. ON AN APPLICATION FILED BY THE ASSE SSEE U/S 254(2) OF THE ACT, THE TRIBUNAL VIDE ITS LATER ORDER DATED 3.8.20 12, RECALLED ITS ORIGINAL ORDER ON THIS LIMITED ISSUE. THAT IS HOW, THIS ISSU E HAS BEEN PLACED BEFORE US FOR CONSIDERATION AND DECISION. 3. THE ISSUE IS ABOUT ASCERTAINING THE ACTUAL COST OF EQUIPMENTS PURCHASED BY THE ASSESSEE FROM M/S BABA BUILDWELL A ND GIVEN ON RENT TO M/S MINERVA HOLDING AND THE CONSEQUENTIAL AMOUNT OF DEPRECIATION. THIS ISSUE IS SIMILAR TO THE ONE RAISED IN THE APPE AL FOR THE IMMEDIATELY PRECEDING ASSESSMENT YEAR, I.E., 2001-02. BOTH THE SIDES ARE IN AGREEMENT THAT THE FACTS AND CIRCUMSTANCES OF THE A PPEAL FOR THE CURRENT YEAR ARE MUTATIS MUTANDIS SIMILAR TO THOSE OF THE EARLIER YEAR. IN FACT, ITA NO.4342/DEL/2007 3 BOTH THE SIDES ADOPTED THE ARGUMENTS MADE FOR THE E ARLIER YEAR IN RELATION TO THE INSTANT YEAR. WE HAVE PASSED A SEPARATE ORD ER FOR THE PRECEDING YEAR DETERMINING THE ACTUAL COST OF SUCH EQUIPMENTS AT RS.35 LAC AS AGAINST RS.20 LAC TAKEN BY THE AO. THE IMPUGNED ORD ER IS SET ASIDE ON THIS SCORE AND THE MATTER IS REMITTED TO THE AO FOR ALLOWING DEPRECIATION ACCORDINGLY. THIS GROUND IS DISPOSED OF IN THE ABO VE TERMS. 4. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 05.05.201 5. SD/- SD/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 5 TH MAY, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.