RCI Industries & Technologies Ltd, V. ACIT CC-16,

ITA 492/DEL/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2124 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 17-12-2009
• Assessment Year: 2003-2004
• Appeal Filed On: 11-02-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H K LAL
• Assessee Lawyers: K P GARG
• Keywords: Opportunity of being heard; Set aside

Judgement Text

ITA NO. 492/DEL/2008 A.Y. 2003-04 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 492/DEL/2008 A.Y. 2003-04 M/S RCI INDUSTRIES & TECHNOLOGIES LTD. VS. ACIT, CENTRAL CIRCLE-16, B-97, ALL HEAVEN BUILDING, NEW DELHI WAZIRPUR, DELHI 52 [APPELLANT] (RESPONDENT) ASSESSEE BY : SHRI K.P. GARG, CA DEPARTMENT BY : SH. H.K. LAL, SR. DR ORDER PER SHAMIM YAHYA, AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) DATED 5.9.2007 FOR THE ASSESSMENT YEAR 2003-04. 2. THE ISSUE RAISED READS AS UNDER:- THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS I N SUSTAINING THE IMPUGNED ADDITION OF A. RS. 7,85,000/- ON ACCOUNT OF DISALLOWANCE OF DEPRECI ATION ON COMMERCIAL BUILDING ON THE GROUND THAT IT IS ON THE DISALLOWED AMOUNT OF ADDITIONS TO THE BUILDING AND THAT EVEN O THERWISE IT IS NOT ALLOWABLE; ITA NO. 492/DEL/2008 A.Y. 2003-04 2 B. RS. 2,50,160/- ON ACCOUNT OF DISALLOWANCE OF DEPREC IATION ON COMPUTERS ON THE GROUND THAT DURING THE YEAR NO BUS INESS WAS DONE IN THE DIVISION OF INFORMATION AND TECHNOLOGY; C. RS. 41,855/- ON ACCOUNT DISALLOWANCE BEING 10% OF MI SC. EXPENSES, THE LEARNED AO HAD DISALLOWED AT 50%; AND D. RS. 90,000/- ON ACCOUNT OF ALLEGED PERSONAL USE BY D IRECTORS ON ESTIMATE BASIS OF TELEPHONE AND VEHICLE RUNNING EXP ENSES. MERELY FOLLOWING ORDER OF THE PREVIOUS YEAR ON THE GROUND THAT NO NEW FACTS HAVE BEEN BROUGHT TO HIS NOTICE. THE APP ELLANT DENIES HIS LIABILITY TO TAX AS UPHELD BY THE LEARNED CIT(A) AN D DETERMINED AND COMPUTED BY THE LEARNED ASSESSING OFFICER AND THE M ANNER IN WHICH IT HAS BEEN SO DETERMINED OR COMPUTE. 3. WE HAVE HEARD BOTH THE COUNSELS AND PERUSED THE RECORDS. WE FIND THAT LD. CIT(A) HAS PRIMARILY ADJUDICATE UPON ON THE BASIS OF HIS DECISION IN EARLIER YEAR. IT TRANSPIRES THAT ASSESSEES AS WELL AS REVENUES A PPEAL IN ASSESSMENT YEAR 2002-03 WERE CONSIDERED BY THIS TRIBUNAL IN ITA NO. 2880/DEL/07 AND ITA NO. 3049/DEL/07. VIDE ORDER DATED 28.11.2009 THE TRIBUNAL HAD SET ASIDE THE ORD ER OF THE LD. CIT(A) AND RESTORED IT TO THE AO TO RE-ADJUDICATE THE ISSUE ON THE APPEAL AFTER GRATING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. SINCE THE BASIC RELI ANCE IN THE CURRENT YEAR HAS BEEN PLACED BY THE LD. CIT(A) ON HIS PREVIOUS APPELLATE ORDER AND THE SAME HAS BEEN SET ASIDE BY THE TRIBUNAL AND MATTER REMITTED TO THE AO , IT WOULD BE APPROPRIATE TO REMIT THE ISSUE IN THE PRESENT APPEAL ALSO TO THE FILES O F THE AO TO CONSIDER THE SAME AFRESH. BOTH THE COUNSELS FAIRLY AGREED TO THIS PROPOSITION . ACCORDINGLY, FOLLOWING THE PRECEDENCE, WE SET ASID E THE ISSUE TO THE FILES OF THE AO TO CONSIDER THE ISSUE AFRESH AFTER GIVING THE AS SESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. ITA NO. 492/DEL/2008 A.Y. 2003-04 3 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17.12.200 9. SD/- SD/- [I.P. BANSAL] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE 17.-12-2009 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES