DCIT, Circle - 12, Kolkata, Kolkata V. M/s. Selvel Media Services Pvt. Ltd., Kolkata

ITA 451/KOL/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7540 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2012
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 16-03-2011
• Court: TRIBUNAL
• Department Lawyers: K R MONDAL
• Keywords: Opportunity of being heard

Judgement Text

1 , C , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH- C, KOL KATA [ . . . . . .. . , !'# !'# !'# !'# , ] BEFORE SRI S.V.MEHROTRA, ACCOUNTANT MEMBER & SRI N.VIJAYAKUMAR AN, JUDICIAL MEMBER $ $ $ $ / ITA NOS. 451 & 452 (KOL) OF 2011 % & '( / ASSESSMENT YEARS 2006-07 & 2007-08 DY.COMMISSIONER OF INCOME-TAX CIRCLE-12, KOLKATA. SELVEL MEDIA SERVICES PVT. LTD., KOLKATA. (PAN-AADCS7951G) (+, / APPELLANT ) - - - VERSUS - (/0+,/ RESPONDENT ) +, 1 2 / FOR THE APPELLANT: /SRI K.R. MONDAL /0+, 1 2 / FOR THE RESPONDENT: / SRI SUBASH AGARWAL # 3 1 4 / DATE OF HEARING : 09/01/2012 5' 1 4 / DATE OF PRONOUNCEMENT : 09/01/2012 6 / ORDER ( !'# !'# !'# !'# ), (N. VIJAYAKUMARAN), JUDICIAL MEMBER : BOTH THESE APPEALS FOR ASSESSMENT YEARS 2006-07 & 2 007-08 ARE BY THE DEPARTMENT AGAINST THE ORDERS OF LD. C.I.T.(A)-XII, KOLKATA DATED 29/12/2010. 2. THE FIRST GROUND IS ON ALLOWING OF DEDUCTIONS O F RS.1,52,77,467/- AND RS. 2,48,98,146/- BY THE LD. C.I.T.(A), WHICH WERE DISA LLOWED BY THE LD. A.O. U/S. 80-IA OF THE ACT FOR ASSESSMENT YEARS 2006-07 AND 2007-08 RE SPECTIVELY FOR DEVELOPMENT OF BUS SHELTERS, TOILET BLOCKS AND FOOT OVER-BRIDGES. THE REVENUE CONTENDS THAT THE SAME DO NOT QUALIFY FOR DEDUCTION AS INFRASTRUCTURE FACI LITIES AS PER EXPLANATION TO SEC. 80- IA(4) OF THE ACT. FOR THE ASSESSMENT YEARS UNDER C ONSIDERATION ALSO, THE ASSESSEE IS IN THE SAME BUSINESS OF DEVELOPING INFRASTRUCTURE FACI LITIES WHICH HAS BEEN TERMED AS BRIDGE & ROAD. 3. THIS ISSUE IS COMMON FOR BOTH THE ASSESSMENT YE ARS UNDER APPEAL BEFORE US. ON IDENTICAL SET OF FACTS, THE I.T.A.T., B BENCH, KO LKATA IN ITA NO. 1065/KOL/2008 IN THE 2 CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2005-06 VI DE THEIR ORDER DATED 31/7/2009 BY FOLLOWING THE DECISION OF I.T.A.T., KOLKATA BENC H C DATED 30/6/2009 IN THE CASE OF THE SISTER CONCERN OF THE ASSESSEE, VIZ., VANTAGE A DVERTISING PVT. LTD. IN ITA NOS. 1054 & 1055/KOL/2008 HELD THAT THE BUS SHELTERS, TOILET BLOCKS ETC. WERE FUNCTIONALLY NECESSARY AND PART & PARCEL OF HIGHWAY INFRASTRUCTU RE. THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE DECISIONS OF THE TRIBUNAL, WE C ONFIRM THE ORDERS OF LD. C.I.T.(A) FOR THE ASSESSMENT YEARS UNDER APPEAL ALSO, WHO FOLLOWE D THE DECISION OF I.T.A.T. REFERRED SUPRA. HENCE THE ISSUE FOR BOTH THE ASSESSMENT YEA RS UNDER APPEAL IS DECIDED AGAINST THE REVENUE AND IN FAVOUR OF THE ASSESSEE. 4. COMING TO THE SECOND ISSUE, IT IS ONLY FOR ASSE SSMENT YEAR 2006-07 RELATING TO THE DELETION OF ADDITION ON ACCOUNT OF PRIOR PERIOD EXPENSES. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE DISA LLOWANCE OF RS.1,65,974/- HAS TO GO BACK TO THE FILE OF LD. A.O. FOR PROPER ADJUDICATIO N ON MERITS AND IN ACCORDANCE WITH LAW. WE, THEREFORE, SET ASIDE THE ORDERS OF THE AUTHORIT IES BELOW ON THIS ISSUE AND REMAND THE MATTER TO THE FILE OF LD. A.O. TO DECIDE THE IS SUE AFRESH AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND IN ACCORDANCE WI TH LAW. THE ASSESSEE IS AT LIBERTY TO JUSTIFY THE CLAIM WITH RELEVANT SUFFICIENT MATERIAL TO THE SATISFACTION OF THE LD. A.O. HENCE THE SECOND ISSUE FOR ASSESSMENT YEAR 2006-07 IS TO BE TREATED AS ALLOWEOD FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE REVENUES APPEAL FOR ASSESSM ENT YEAR 2006-07 IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND THAT FO R ASSESSMENT YEAR 2007-08 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09/1/2012 SD/- SD/- ( . . . . . .. . ) ( !'# !'# !'# !'# ) (S.V.MEHROTRA), ACCOUNTANT MEMBER (N.VIJAYAKUMARAN) JUDICIAL MEMBER ( (( (4 4 4 4) )) ) DATE: 09-01-2012 3 $ $ $ $ / ITA NOS. 451 & 452 (KOL) OF 2011 6 1 /%%! 7!'8- COPY OF THE ORDER FORWARDED TO: 1. +, / THE APPELLANT : DCIT, CIRCLE-12, KOLKATA. 2 /0+, / THE RESPONDENT : SELVEL MEDIA SERVICES PVT. LTD., 10/1G, DIAMOND HARBOUR RO AD, KOLKATA-700 027. 3. %6 () : THE CIT(A)-XII, KOLKATA. 4. %6 / THE C.I.T., KOL - 5 <%= /% / DR, ITAT, KOLKATA BENCHES, KOLKATA 6 GUARD FILE . 0! /%/ TRUE COPY, 6 #/ BY ORDER, (DKP) ASSTT. REGISTRAR .