Dewan Sugars Mills Ltd., Meerut V. DCIT, New Delhi

ITA 5068/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86934 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-03-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 28-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARWINDER KAUR
• Assessee Lawyers: N K CHADHA
• Keywords: Reopening of assessment; Depreciation
• Section: 143(3); 147; 148

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI N.K. SAINI , ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA NO. 5068 /DEL/201 2 ASSESSMENT YEAR 200 4 - 05 DEWAN SUGARS LTD. VS. DCIT, CIRCLE - 10(1), C/O. J.M. C HADHA & CHADHA NEW DELHI. CHARTERED ACCOUNTANTS 299, P.L. SHARMA ROAD, MEERUT. (PAN AA A CD 3465 H ) ( APPELLANT) (RESPONDENT) DATE OF HEARING : 11 .0 3 .2015 DATE OF PRONOUNCEMENT : 11. 03 .2015 APPELLANT BY : SRI SANJAY SOOD CA, AND SRI N.K. CHADHA, ADVOCATE RESPONDENT BY: SMT. PARWINDER KAUR, SR. DR. ORDER PER SHRI GEORGE GEORGE K , J M : 1. TH IS APPEAL , AT THE INSTANCE OF THE ASSESSEE , IS DIRECTED AGAINST THE CIT(A) S ORDER DATED 13 .0 7 .201 2 . THE RELEVANT ASSESSMENT YEAR I S AY 200 4 - 05 . 2. THE GROUND S RAISED READ S AS FOLLOWS: - 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT(A) HAS ERRED IN NOT ADJUDICATING UPON THE ADDITIONAL GROUND OF APPEAL RAISED BY THE APPELLANT AS HEREUNDER IT A NO. 5068 /DEL /201 2 2 'ON THE FACTS AND CIR CUMSTANCES OF THE CASE AND IN LAW. THE LEARNED DY. COMMISSIONER OF INCOME TAX WAS NOT JUSTIFIED IN LAW TO RE - OPEN THE ASSESSMENT COMPLETED U/S 143(3) IN THE CASE OF THE ASSESSEE/APPELLANT ON THE BASIS OF AUDIT OBSERVATION/OBJECTION '. 2. THAT WITHOUT PRE JUDICE TO THE ABOVE, THE LEARNED CIT(A) HAS ERRED IN NOT ALLOWING DEPRECIATION ON ELECTRIC INSTALLATIONS @ 25% AS CLAIMED BY THE APPELLANT, THEREBY, CONFIRMING THE ADDITION OF RS.12,62,365/ - MADE BY THE LEARNED AO IN HIS ORDER U/S 147/143(3). 3. BRIEFL Y STATED THE FACTS OF THE CASE ARE AS FOLLOWS. THE ASSESSEE IS A COMPANY. IT IS ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF SUGAR. THE ASSESSMENT U / S 143(3) WAS COMPLETED ON 30.11.2006 DETERMINING TOTAL LOSS AT RS.9,13,12,228/ - , SUBSEQUENTLY, ASSES SMENT WAS REOPENED BY ISSUANCE OF NOTICE U/S 148 OF THE ACT ON 30.03.2011. THE REASSESSMENT U/S 147 R.W.S 143(3) OF THE ACT WAS COMPLETED BY ORDER DATED 31.10.2011 DETERMINING THE TOTAL LOSS AT RS.4,27,31,596/ - . IN THE REASSESSMENT COMPLETED, THE ASSESSING OFFICER MADE THE FOLLOWING DISALLOWANCES: - I) DISALLOWANCE OF DEPRECIATION ON MACHINERY AMOUNTING TO RS.5,10,14,037 / - AND II) DISALLOWANCE OF DEPRECIATION ON ELECTRIC INSTALLATION AMOUNTING TO RS.12,62,365/ - 4. . AGGRIEVED BY THE ASSESSMENT, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. THE ASSESSEE RAISED GROUNDS WITH REFERENCE TO DISALLOWANCE OF DEPRECIATION ON MACHINERY AMOUNTING TO RS.5,10,14,037/ - AND ON ELECTRIC INSTALLATION AMOUNTING TO RS.12,62,365 / - . THE ASSES SEE ALSO RAISED ADDITIONAL GROUND WITH REFERENCE TO VALIDITY OF REOPENING OF ASSESSMENT BY I SSUANCE OF NOTICE U/S 148 OF THE ACT. THE CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE ON MERITS. THE IT A NO. 5068 /DEL /201 2 3 CIT(A) DELETED THE DISALLOWANCE OF DEPRECIATION ON MACHINE RY AMOUNTING TO RS.5,10,14,037/ - . THE CIT(A) CONFIRMED THE DISALLOWANCE OF DEPRECIATION ON ELECTRIC INSTALLATION AMOUNTING RS.12,62,365/ - . WITH REFERENCE TO THE ADDITIONAL GROUND RAISED, THE CIT(A) OMITTED TO ADJUDICATE THE SAME. 5. AGGRIEVED , THE ASSESSEE IS IN APPEAL BEFORE US. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE CIT(A) HAS ERRED IN NOT ADJUDICATING UPON THE ADDITIONAL GROUND RAISED BEFORE HIM. THE SUBMISSION MADE BEFORE THE CIT(A) WERE REITERATED BEFORE US. 6. THE LD. DR PRESENT WAS DULY HEARD. 7. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WITH REGARD TO REOPENING OF ASSESSMENT BY ISSUANCE OF NOTICE U/S 148 OF THE ACT, THE ASSESSEE HAS CHALLENGED THE SAME BY RAISING ADDITIONAL GROUND BEFORE THE CIT (A). THE ADDITIONAL GROUND RAISED BEFORE THE CIT(A) READS AS FOLLOWS: - 'ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW. THE LEARNED DY. COMMISSIONER OF INCOME TAX WAS NOT JUSTIFIED LAW TO RE - OPEN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) IN THE CASE OF THE ASSESSEE/APPELLANT ON THE BASIS OF AUDIT OBSERVATION/OBJECTION '. 8. ELABORATE SUBMISSIONS BEFORE THE CIT(A) WITH REFERENCE TO THE ABOVE ADDITIONAL GROUND ARE EXTRACTED AT PARA 5 OF THE IMPUGNED ORDER OF THE CIT(A). THE FINDING OF THE CIT(A) AT PARA 5.3 OF THE IMPUGNED ORDER IS ONLY WITH REFERENCE TO THE MERITS OF THE CASE AND THERE IS NO ADJUDICATION ON VALIDITY OF REOPENING OF ASSESSMENT. THEREFORE, IT IS APPROPRIATE TO REMAND THE ENTIRE CASE FOR DE NOVO CONSIDERATION TO THE CIT(A) AND WE D O SO . THE CIT(A) IS DIRECTED TO DISPOSE OF THE IT A NO. 5068 /DEL /201 2 4 MATTER AS EXPEDITIOUSLY AS POSSIBLE AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. IT IS ORDERED ACCORDINGLY. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. TH E DECISION WAS PRONOUNCED IN THE OPEN COURT ON 11 TH MARCH , 201 5 . SD/ - SD/ - ( N.K. SAINI ) (GEORGE GEORGE K.) A CCOUNTANT MEMBER J UDICIAL MEMBER DATED: 11 TH MARCH , 201 5 . AKS/ - COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST . REGISTRAR, ITAT, NEW DELHI