ACIT, New Delhi V. M/s. Galileo India (P) Ltd., New Delhi

ITA 4784/DEL/2011

• Counselvise Citation: 478420114 RSA 2011
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 04-01-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 02-11-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SALIL MISHRA
• Assessee Lawyers: TAPAS RAM MISHRA
• Keywords: Depreciation; Question of law
• Section: 14A

Judgement Text

ITA 4784/DEL/11 GALILEO INDIA (P) LTD. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI A.N. PAHUJA ITA NO. 4784/DEL/2011 ASSTT. YR: 2005-06 ACIT, CIRCLE 12(1), VS. M/S GALILEO INDIA (P) LTD., NEW DELHI. 124, JANPATH, CENTRAL WING, GROUND FLOOR, THAPAR HOUSE, NEW DELHI-110001. PAN/GIR NO. AAACG3351K (APPELLANT) ( RESPONDENT ) APPELLANT BY : SHRI SALIL MISHRA SR. DR RESPONDENT BY : SHRI TAPAS RAM MISHRA ADV. O R D E R PER R.P. TOLANI, J.M : THIS IS REVENUES APPEAL AGAINST CIT(A)S ORDER DAT ED 28-7-2011, RELATING TO A.Y. 2005-06. FOLLOWING GROUNDS ARE RAI SED: 1. WHETHER, LD. CIT(A) WAS CORRECT ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW IN DELETING TH E DISALLOWANCE OF RS. 12,18,278/- ON ACCOUNT OF EXPEN SES INCURRED FOR EARNING EXEMPTED INCOME MADE BY THE AO U/S 14A READ WITH RULE 8D. 2. WHETHER, LD. CIT(A) WAS CORRECT ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW IN DELETING TH E DISALLOWANCE OF RS. 6,98,790/- ON ACCOUNT OF DEPREC IATION ON COMPUTER PERIPHERALS. 2. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET CONTENDS THAT THE IMPUGNED ORDER HAS BEEN PASSED BY THE AO CONSEQUENT TO THE ORDER OF CIT ITA 4784/DEL/11 GALILEO INDIA (P) LTD. U/S 263, SETTING ASIDE THE ORDER OF AO FOR NON-CONS IDERATION OF ISSUES U/S 14A AND EXAMINING THE ALLOWANCE OF DEPRECIATION. TH IS ORDER OF CIT WAS CHALLENGED BY THE ASSESSEE BEFORE THE ITAT, WHICH V IDE ITS ORDER DATED 16- 12-2010 RENDERED IN ITA NO. 2331/DEL/10, QUASHED TH E 263 PROCEEDINGS. 2.1. REVENUE CHALLENGED THE ORDER OF ITAT, QUASHING THE CITS ORDER U/S 263 BEFORE THE HONBLE DELHI HIGH COURT, WHICH BY J UDGMENT DATED 19-12- 2011 RENDERED IN ITA NO. 1074/ 2011 UPHELD THE 263 ORDER PASSED BY THE CIT, BY FOLLOWING OBSERVATIONS: 10. WE HAVE BEEN INFORMED AT THE BAR BY COUNSEL FO R THE RESPONDENT THAT IN SPITE OF THE ORDER OF THE TRIBUN AL DATED 11161-12-2010, THE ASSESSING OFFICER AHD PASSED AN ORDER ON 24-12-2010. LEARNED COUNSEL FOR THE RESPONDENT FURT HER STATES THAT THE SAID ORDER HAS BEEN QUASHED BY THE CIT(A) AS IT WAS PASSED AFTER THE ORDER DATED 16-12-2010. THE REVENU E AHS HOWEVER PREFERRED AN APPEAL BEFORE THE TRIBUNAL. IN THESE CIRCUMSTANCES, COUNSEL FOR THE RESPONDENT-ASSESSEE STATES THAT THE ASSESSING OFFICER SHOULD PASS A FRESH ORDER IN TERMS OF THE DIRECTIONS GIVEN BY THIS COURT AND AS THIS COURT HA S SET ASIDE THE ORDER OF THE TRIBUNAL. LEARNED COUNSEL FOR THE REVE NUE IN VIEW OF THE FACTS STATED BY THE RESPONDENT-ASSESSEE STAT ES THAT HE HAS NO OBJECTION IN CASE THE ASSESSING OFFICER IS DIREC TED TO PASS A FRESH ORDER. IN VIEW OF THE STATEMENTS, WHICH ARE T AKEN ON RECORD, IT IS DIRECTED THAT THE ASSESSING OFFICER W ILL PASS A FRESH ORDER. 11. ACCORDINGLY THE QUESTION OF LAW IS ANSWERED IN NEGATIVE AND AGAINST THE ASSESSEE AND IN FAVOUR OF THE REVEN UE BUT SUBJECT TO THE DIRECTIONS/ OBSERVATIONS MADE ABOVE. 2.2. LEARNED COUNSEL CONTENDS THAT AO PASSED THE IM PUGNED ORDER DISALLOWING THE AMOUNT U/S 14A AND ON ACCOUNT OF DE PRECIATION. HOWEVER, THE OBSERVATION MADE BY THE HONBLE HIGH COURT WERE NOT BEFORE HIM. BESIDES, THE HONBLE HIGH COURT HAS DIRECTED THE AO TO PASS A FRESH ORDER. ITA 4784/DEL/11 GALILEO INDIA (P) LTD. 3. LEARNED DR IS HEARD. 4. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE RELEVANT MATERIAL AVAILABLE ON RECORD. KEEPING IN VIEW THE D IRECTIONS OF HONBLE HIGH COURT FOR AO TO PASS A FRESH ORDER, AS PER THE OBSE RVATIONS MADE THEREIN, WE SET ASIDE THE MATTER BACK TO THE FILE OF AO TO PASS APPROPRIATE ORDER IN VIEW OF HONBLE HIGH COURTS DIRECTION. 5. IN THE RESULT, REVENUES APPEAL IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 04-01-2012. SD/- SD/- ( A.N. PAHUJA ) ( R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 04-01-2012. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR