Akash Fashion Prints Pvt. Ltd., Ahmedabad V. The Income Tax Officer, Ward-1(1)(4), Ahmedabad

ITA 517/AHD/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8311 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 02-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Depreciation; Notional interest; Capital expenditure

Judgement Text

ITA NOS. 516 & 517/AHD/2017 AKASH FASHION PRINTS PVT LTD VS. ITO ASSESSMENT YEAR: 2012-13 & 2013-14 PAGE 1 OF 7 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH D, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT, AND PRAMOD KU MAR, VICE PRESIDENT] ITA NOS. 516 & 517/AHD/2017 ASSESSMENT YEAR: - 2012-13 & 2013-14 AKASH FASHION PRINTS PVT LTD ............ ..APPELLANT 238, SAIJPUR GOPALPUR, SHAHWADI, OCTROI NAKA, NAROL, AHMEDABAD [PAN : AABCA 8319 C] VS INCOME TAX OFFICER .................RESPON DENT WARD 1(1)(3), AHMEDABAD APPEARANCES BY SANJAY R SHAH, FOR THE APPELLANT VINOD TANWANI, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 03.06.2019 DATE OF PRONOUNCEMENT : 01.07.2019 O R D E R PER BENCH : 1. THESE TWO APPEALS WERE HEARD TOGETHER, PERTAIN T O THE ASSESSEE AND INVOLVE SOME COMMON ISSUES. AS A MATTER OF CONVENIENCE, TH EREFORE, BOTH THE APPEALS ARE BEING DISPOSED OF BY THIS COMMON ORDER. ITA NO. 516/AHD/2017 ASSESSMENT YEAR 2012-13 2. THIS APPEAL IS DIRECTED AGAINST LEARNED CIT(A)S ORDER DATED 19 TH DECEMBER 2016, IN THE MATTER OF ASSESSMENT UNDER SECTION 143 (3) OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2012-13. 3. IN GROUND NO.1, THE ASSESSEE HAS RAISED THE FOLL OWING GRIEVANCE:- 1. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING DISALLOWANCE OF RS.1,41,198/- TOWARDS THE CLAIM OF DEPRECIATION IN RESPECT OF ELECTRIFICATION, WHICH ACCORDING TO APPELLANT IS ENTITLED TO 15% RAT E OF DEPRECIATION INSTEAD OF 10% ALLOWED BY THE LEARNED AO. IT IS SUBMITTED THA T IT BE SO HELD NOW AND THE ITA NOS. 516 & 517/AHD/2017 AKASH FASHION PRINTS PVT LTD VS. ITO ASSESSMENT YEAR: 2012-13 & 2013-14 PAGE 2 OF 7 AMOUNT OF RS.1,41,198/- MADE TOWARDS EXCESS CLAIM O F DEPRECIATION BE DELETED. 4. TO ADJUDICATE ON THIS GRIEVANCE, ONLY A FEW MATE RIAL FACTS NEED TO BE TAKEN NOTE OF. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, IT WAS NOTICED THAT THE ASSESSEE HAS CLAIMED DEPRECIATION @ 15% IN RESP ECT OF ADDITIONS TO ELECTRIC FITTINGS. IT WAS EXPLAINED BY THE ASSESSEE THAT TH ESE ADDITIONS ARE IN RESPECT OF SWITCHES, STARTERS, CONTROL PANELS ETC WHICH ARE PA RT OF PLANT AND MACHINERY. THE ASSESSING OFFICER, HOWEVER, REJECTED THIS PLEA ON T HE GROUND THAT ONCE A SPECIFIC RATE IS PRESCRIBED FOR ELECTRIC FITTINGS @ 10%, THE DEPR ECIATION HAS TO BE ALLOWED ONLY AT THAT RATE. THE DEPRECIATION OF RS.1,41,198/- WAS T HUS DISALLOWED. AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CI T(A) BUT WITHOUT ANY SUCCESS. NOT SATISFIED, THE ASSESSEE IS IN FURTHER APPEAL BE FORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE AP PLICABLE LEGAL POSITION. 6. WE FIND THAT UNDOUBTEDLY IN A SITUATION IN WHICH AN ELECTRIC FITTING IS INDEED AN INTEGRAL PART OF THE PLANT AND MACHINERY, DEPRECIAT ION HAS TO BE ALLOWED AT THE RATE APPLICABLE FOR THE PLANT AND MACHINERY. HOWEVER, T HAT ASPECT OF THE MATTER HAS NOT BEEN EXAMINED BY ANY OF THE AUTHORITIES BELOW. WE, THEREFORE, DEEM IT FIT AND PROPER TO REMIT THE MATTER TO THE FILE OF THE ASSESSING OF FICER FOR FRESH EXAMINATION IN THE LIGHT OF OUR OBSERVATIONS ABOVE. ORDERED, ACCORDIN GLY. 7. GROUND NO. 1 IS THUS ALLOWED FOR STATISTICAL PUR POSES. 8. IN GROUND NO.2, THE APPELLANT HAS RAISED THE FOL LOWING GRIEVANCE:- 2. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING AN ADDITION OF RS.12,594/- U/S 2(24) R.W.S. 36(1)(V)(A) OF THE ACT TOWARDS EMPLOYEES CONTRIBUTION UNDER P.F. ACT. IT IS SUBMITTED THAT IT BE SO HELD NOW AND THE ADDITION MADE BE DELETED. 9. LEARNED REPRESENTATIVES FAIRLY AGREE THAT THE IS SUE IS COVERED, IN FAVOUR OF THE REVENUE, BY HONBLE JURISDICTIONAL HIGH COURTS JUD GMENT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORP. LTD [(2014) 366 ITR 170 (GUJ)]. WE, THEREFORE, APPROVE THE CONCLUSION ARRIVED AT BY THE CIT(A) AND DECLINE TO INTERFERE IN THE MATTER. 10. GROUND NO.2 IS DISMISSED. 11. IN GROUND NO. 3, THE APPELLANT HAS RAISED THE F OLLOWING GRIEVANCE:- 3. THE LEARNED CIT(A) GROSSLY ERRED IN LAW AND ON FACTS IN CONFIRMING DISALLOWANCE OF RS.19,26,111/- OUT OF INTEREST EXPE NSES INCURRED BY THE APPELLANT ON THE GROUND THAT THE SAME IS ATTRIBUTAB LE TO CAPITAL WORK IN PROGRESS. THE LEARNED CIT(A) FAILED TO APPRECIATE THAT ITA NOS. 516 & 517/AHD/2017 AKASH FASHION PRINTS PVT LTD VS. ITO ASSESSMENT YEAR: 2012-13 & 2013-14 PAGE 3 OF 7 I) THE APPELLANT HAS NOT BORROWED ANY AMOUNT FOR TH E PURPOSE OF FINANCING CAPITAL WORK IN PROGRESS; AND II) THE APPELLANT HAD SUFFICIENT INTEREST FREE FUND S TO FINANCE ITS CAPITAL WORK IN PROGRESS IT IS SUBMITTED THAT IT BE SO HELD NOW AND DISALLOW ANCE MADE BE DELETED. 12. SO FAR AS THIS GRIEVANCE OF THE ASSESSEE IS CON CERNED, THE RELEVANT MATERIAL FACTS ARE LIKE THIS. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT WHILE THE ASSESSEE H AS CLAIMED DEDUCTION OF RS.1,66,07,166/- ON ACCOUNT OF INTEREST PAID ON SEC URED AND UNSECURED LOANS AND WHILE THE ASSESSEE HAS INVESTED RS.2,60,93,203/- IN THE CAPITAL WORK IN PROGRESS, NO PART OF INTEREST EXPENSES IS DISALLOWED AS CAPITAL EXPENDITURE. WHEN ASSESSEE WAS CONFRONTED WITH THIS POSITION, IT WAS EXPLAINED BY THE ASSESSEE THAT THERE WAS NET REDUCTION IN TERM LOANS AND THAT NO PART OF THE LOA NS WAS THUS USED IN CAPITAL WORK IN PROGRESS. REJECTING THIS PLEA, THE ASSESSEE MADE TH E PROPORTIONATE DISALLOWANCE OF RS.19,26,111/-. AGGRIEVED, ASSESSEE CARRIED THE MA TTER IN APPEAL BEFORE THE CIT(A) BUT WITHOUT ANY SUCCESS. LEARNED CIT(A) CONFIRMED THE DISALLOWANCE BY OBSERVING AS FOLLOWS:- 4.3. I HAVE GONE THROUGH THE FACTS AND THE SUBMIS SION OF THE APPELLANT CAREFULLY. IT IS SEEN THAT ASSESSEE HAS DEBITED AN AMOUNT OF RS. 1,66,07,166/- BEING INTEREST PAID ON LOANS OBTAINED AS SECURED & UNSECURED LOAN TO BANKS & FINANCIAL INSTITUTIONS. FURTHER, THE A.O. HAS OBS ERVED THAT APPELLANT IS HAVING TOTAL BORROWED FUNDS OF RS. 22,49,78,784/- O N WHICH ASSESSEE HAS PAID INTEREST OF 1,66,07,166/-. THUS, ASSESSEE HAS TOTAL ASSETS OF RS.22,56,53,205/- INCLUDING CAPITAL WORK-IN-PROGRES S OF RS.2,60,93,203/-. ACCORDINGLY, INTEREST WORKED OUT ON CAPITAL WORK IN PROGRESS OF IS DISALLOWED TO THE EXTENT OF RS. 19,26,111/- BY THE A.O. ON THE OTHER HAND APPELLANT HAS STATED THAT NO BORR OWING WAS TAKEN FOR CREATING THE CAPITAL WORK IN PROGRESS. HE HAS SUBMI TTED THE BALANCE SHEET OF THE APPELLANT COMPANY WHICH HAS SHOWN RS. 2,60,93,2 03/- AS CAPITAL WORK IN PROGRESS ON ACCOUNT OF THE FOLLOWING ITEMS:- A. BUILDINGS - RS. 1,09,94,284/- B. COMMON ETP PLANT - RS. 1,50,98,919/- ------------------------ TOTAL RS. 2,60,93,203/- HE HAS ALSO SUBMITTED THAT WHILE THE AMOUNT WAS SPE NT ON CAPITAL WORK IN PROGRESS DURING THE YEAR GRADUALLY OVER THE PERIOD, NO FRESH TERM LOAN WAS TAKEN FROM THE BANK. HE FURTHER CONTENDED THAT THE WHOLE OF EXPENDITURE ON CAPITAL WORK IN PROGRESS WAS INCURRED OUT OF CASH P ROFIT OF THE COMPANY DURING THE YEARS UNDER CONSIDERATION. AS THERE WAS NO BORROWING FOR THIS BLOCK OF ASSETS (CAPITAL WORK IN PROGRESS), THERE WAS NO INTEREST PAYMENT ON THIS ACCOUNT. THE APPELLANT HAS ALSO ARGUED THAT THE MET HOD OF CALCULATION OF ITA NOS. 516 & 517/AHD/2017 AKASH FASHION PRINTS PVT LTD VS. ITO ASSESSMENT YEAR: 2012-13 & 2013-14 PAGE 4 OF 7 NOTIONAL INTEREST BY THE INCOME TAX OFFICER IS ALSO WRONG. THEREFORE, THIS DISALLOWANCE NEED BE DELETED. 4.4 ON CAREFUL CONSIDERATION OF OBSERVATION OF ASS ESSING OFFICER AND CONTENTION OF APPELLANT, IT IS SEEN THAT THE PROVIS O WITH CLAUSE (III) OF SUB- SECTION (1) OF SECTION 36 OF THE ACT, IT IS CLEAR T HAT, ANY AMOUNT OF INTEREST PAID IN RESPECT OF CAPITAL BORROWED FOR ACQUISITION OF A N ASSET FOR EXTENSION OF EXISTING BUSINESS OR PROFESSION (WHETHER CAPITALIZE D IN THE BOOKS OF ACCOUNTS OR NOT) FOR ANY PERIOD BEGINNING FROM THE DATE ON W HICH THE CAPITAL WAS BORROWED FOR ACQUISITION OF ASSET TILL THE DATE ON WHICH SUCH ASSET WAS FIRST PUT TO USE, SHALL NOT BE ALLOWED AS DEDUCTION. PAYMENT OF BETTERMENT CHARGES IS CAPITAL EXPENDITURE. THEREFORE, PAYMENT OF INTEREST ON ANNUAL INSTALLMENTS OF THE BETTERMENT CHARGES WILL HAVE TO BE REGARDED AS CAPITAL EXPENDITURE, BECAUSE IT HAS NO DIRECT NEXUS WITH THE DAY-TO-DAY RUNNING OF THE BUSINESS OF THE ASSESSEE AS HELD IN CIT VS. AHMEDABAD MFG. & CA LICO PRINTING CO. LTD (GUJ.) 215 ITR 735. THE APPELLANT HAS SUBMITTED THE DETAILS BUT FROM THE DETAILS IT IS SEEN THAT THE APPELLANT HAS NOT ESTAB LISHED ONE TO ONE NEXUS BETWEEN INTEREST FREE FUND AND EXPENDITURE INCURRED ON THE CAPITAL WORK IN PROGRESS. THE APPELLANT HAS TAKEN FD(OD),CASH CREDI T AND CORPORATE LOANS WHICH CAN BE UTILIZED FOR THE ACQUISITION OF CAPITA L WORK IN PROGRESS. IN VIEW OF THE ABOVE FACTS AND DISCUSSION, THE ADDITION MADE B Y THE A. O. OF RS.19,26,111/- IS CONFIRMED. THE GROUND OF THE APPE AL IS DISMISSED. 13. THE ASSESSEE IS NOT SATISFIED AND IS IN FURTHER APPEAL BEFORE US. 14. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED TH E MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE AP PLICABLE LEGAL POSITION. 15. WE FIND THAT THIS ISSUE IS NOW COVERED, IN FAVO UR OF THE ASSESSEE, BY A CO- ORDINATE BENCHS DECISION IN THE CASE OF PG FOILS L TD VS. ACIT (ITA NO. 912/AHD/2015; ORDER DATED 11.12.2018) INASMUCH AS W HEN THE ASSESSEE HAS SUFFICIENT INTEREST FREE FUNDS TO MEET THE INVESTME NT, NO PART OF INTEREST CAN BE SAID TO BE RELATABLE TO INVESTMENT IN QUESTION. IN THE SAID DECISION, CO-ORDINATE BENCH HAS OBSERVED AS FOLLOWS:- 22. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUS ED THE MATERIAL AVAILABLE ON RECORD. AT THE OUTSET, WE NOTE THAT THE OWN INTE REST-FREE FUND AVAILABLE WITH THE ASSESSEE EXCEEDS THE AMOUNT OF INVESTMENT MADE IN THE CAPITAL WORK-IN- PROGRESS. THEREFORE, WE CAN PRESUME THAT THE ASSESS EE IN SUCH CAPITAL WORK- IN-PROGRESS INVESTED THE OWN FUND. IN HOLDING SO, W E FIND SUPPORT AND GUIDANCE FROM THE JUDGMENT OF HONBLE BOMBAY HIGH C OURT IN THE CASE OF RELIANCE UTILITIES AND POWER LTD. REPORTED IN 313 I TR 340 WHEREIN IT WAS HELD AS UNDER:- THE PRINCIPLE THEREFORE WOULD BE THAT IF THERE ARE FUNDS AVAILABLE BOTH INTEREST-FREE AND OVERDRAFT AND/OR LOANS TAKEN, THE N A PRESUMPTION WOULD ARISE THAT INVESTMENTS WOULD BE OUT OF THE IN TEREST-FREE FUND ITA NOS. 516 & 517/AHD/2017 AKASH FASHION PRINTS PVT LTD VS. ITO ASSESSMENT YEAR: 2012-13 & 2013-14 PAGE 5 OF 7 GENERATED OR AVAILABLE WITH THE COMPANY, IF THE INT EREST-FREE FUNDS WERE SUFFICIENT TO MEET THE INVESTMENTS. IN THIS CASE TH IS PRESUMPTION IS ESTABLISHED CONSIDERING THE FINDING OF FACT BOTH BY THE CIT(A) AND TRIBUNAL. 22.1. SIMILARLY, WE ALSO RELY ON THE JUDGMENT OF TH E HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. HDFC BANK LTD REPORTED IN 366 ITR 505 (BOM). THE RELEVANT EXTRACT OF THE ORDER IS REPRODUCED BEL OW:- WHERE ASSESSEE'S CAPITAL, PROFIT RESERVES, SURPLUS AND CURRENT ACCOUNT DEPOSITS WERE HIGHER THAN THE INVESTMENT IN TAX-FRE E SECURITIES, IT WOULD HAVE TO BE PRESUMED THAT INVESTMENT MADE BY THE ASS ESSEE WOULD BE OUT OF THE INTEREST-FREE FUNDS AVAILABLE WITH ASSES SEE AND NO DISALLOWANCE WAS WARRANTED U/S 14A. 22.2. SIMILARLY, WE ALSO FIND SUPPORT FROM THE JUDG MENT OF HONBLE GUJARAT HIGH COURT IN THE CASE OF UTI BANK LTD. REPORTED IN 32 TAXMANN.COM 370 WHERE THE HEADNOTE READS AS UNDER : IF THERE ARE SUFFICIENT INTEREST FREE FUNDS TO MEE T TAX FREE INVESTMENTS, THEY ARE PRESUMED TO BE MADE FROM INTEREST FREE FUN DS AND NOT LOANED FUNDS AND NO DISALLOWANCE CAN BE MADE UNDER SECTION 14A. 22.3 IN VIEW OF THE ABOVE PROPOSITION, WE HOLD THAT NO DISALLOWANCE OF INTEREST EXPENSE CLAIMED BY THE ASSESSEE CAN BE MADE ON ACCO UNT OF FUND INVESTED IN THE CAPITAL WORK IN PROGRESS AS DISCUSSED ABOVE. HENCE, WE REVERSE THE ORDER OF THE AUTHORITIES BELOW. THE AO IS DIRECTED TO DELETE THE ADDITION MADE BY HIM. THUS THE GROUND OF ASSESSEES APPEAL IS ALL OWED. 16. IN VIEW OF THE ABOVE DISCUSSIONS, AS ALSO BEARI NG IN MIND ENTIRETY OF THE CASE, WE UPHOLD THE PLEA OF ASSESSEE IN PRINCIPLE, AS STA TED ABOVE, AND REMIT THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR NECESSARY FAC TUAL VERIFICATION. 17. GROUND NO. 3 IS THUS ALLOWED FOR STATISTICAL PU RPOSES. 18. NO OTHER ISSUE WAS RAISED BEFORE US. 19. IN THE RESULT, ITA NO. 516/AHD/2017 IS PARTLY A LLOWED IN THE TERMS INDICATED ABOVE. ITA NO. 517/AHD/2017 ASSESSMENT YEAR 2013-14 20. THIS APPEAL IS DIRECTED AGAINST LEARNED CIT(A) S ORDER DATED 19 TH DECEMBER 2016, IN THE MATTER OF ASSESSMENT UNDER SECTION 143 (3) OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2013-14. ITA NOS. 516 & 517/AHD/2017 AKASH FASHION PRINTS PVT LTD VS. ITO ASSESSMENT YEAR: 2012-13 & 2013-14 PAGE 6 OF 7 21. IN GROUND NO.1, THE ASSESSEE HAS RAISED THE FOL LOWING GRIEVANCE:- 1. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS I N CONFIRMING DISALLOWANCE OF RS.1,25,216/- TOWARDS THE CLAIM OF DEPRECIATION IN RESPECT OF ELECTRIFICATION, WHICH ACCORDING TO APPELLANT IS ENTITLED TO 15% RAT E OF DEPRECIATION INSTEAD OF 10% ALLOWED BY THE LEARNED AO. IT IS SUBMITTED THA T IT BE SO HELD NOW AND THE AMOUNT OF RS.1,25,216/- MADE TOWARDS EXCESS CLAIM O F DEPRECIATION BE DELETED. 22. FOLLOWING THE STAND TAKEN BY US FOR THE IMMEDIA TELY PRECEDING YEAR, AND FOR THE REASONS SET OUT THEREIN, AS DETAILED EARLIER IN THIS CONSOLIDATED ORDER, WE REMIT THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION IN THE TERMS INDICATED. THE OBSERVATION MADE, ON THIS ISSUE, FO R THE ASSESSMENT YEAR 2012-13 WILL APPLY MUTATIS MUTANDIS FOR THIS ASSESSMENT YEAR AS WELL. THE MATTER ACCO RDINGLY STANDS RESTORED TO THE FILE OF THE ASSESSING OFFICE R. 23. GROUND NO.1 IS THUS ALLOWED FOR STATISTICAL PUR POSES. 24. IN GROUND NO.2, THE APPELLANT HAS RAISED THE FO LLOWING GRIEVANCE:- 2. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING AN ADDITION OF RS.1,97,040/- U/S 2(24) R.W.S. 36(1)(V)(A) OF THE A CT TOWARDS EMPLOYEES CONTRIBUTION UNDER P.F. ACT. IT IS SUBMITTED THAT IT BE SO HELD NOW AND THE ADDITION MADE BE DELETED. 25. LEARNED REPRESENTATIVES FAIRLY AGREE THAT THE I SSUE IS COVERED, IN FAVOUR OF THE REVENUE, BY HONBLE JURISDICTIONAL HIGH COURTS JUD GMENT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORP. LTD [(2014) 366 ITR 170 (GUJ)]. WE, THEREFORE, APPROVE THE CONCLUSION ARRIVED AT BY THE CIT(A) AND DECLINE TO INTERFERE IN THE MATTER. 26. GROUND NO.2 IS DISMISSED. 27. IN GROUND NO.3, THE ASSESSEE HAS RAISED THE FOL LOWING GRIEVANCE:- 3. THE LEARNED CIT(A) GROSSLY ERRED IN LAW AND ON FACTS IN CONFIRMING DISALLOWANCE OF RS.23,61,618/- OUT OF INTEREST EXPE NSES INCURRED BY THE APPELLANT ON THE GROUND THAT THE SAME IS ATTRIBUTAB LE TO CAPITAL WORK IN PROGRESS. THE LEARNED CIT(A) FAILED TO APPRECIATE THAT I) THE APPELLANT HAS NOT BORROWED ANY AMOUNT FOR TH E PURPOSE OF FINANCING CAPITAL WORK IN PROGRESS; AND II) THE APPELLANT HAD SUFFICIENT INTEREST FREE FUND S TO FINANCE ITS CAPITAL WORK IN PROGRESS IT IS SUBMITTED THAT IT BE SO HELD NOW AND DISALLOW ANCE MADE BE DELETED. ITA NOS. 516 & 517/AHD/2017 AKASH FASHION PRINTS PVT LTD VS. ITO ASSESSMENT YEAR: 2012-13 & 2013-14 PAGE 7 OF 7 28. FOLLOWING THE STAND TAKEN BY US FOR THE IMMEDIA TELY PRECEDING YEAR, AND FOR THE REASONS SET OUT THEREIN, AS DETAILED EARLIER IN THIS CONSOLIDATED ORDER, WE REMIT THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION IN THE TERMS INDICATED. THE OBSERVATION MADE, ON THIS ISSUE, FO R THE ASSESSMENT YEAR 2012-13 WILL APPLY MUTATIS MUTANDIS FOR THIS ASSESSMENT YEAR AS WELL. THE MATTER ACCO RDINGLY STANDS RESTORED TO THE FILE OF THE ASSESSING OFFICE R. 29. GROUND NO.3 IS THUS ALLOWED FOR STATISTICAL PUR POSES. 30. IN THE RESULT, ITA NO. 517/AHD/2017 IS ALSO PAR TLY ALLOWED IN THE TERMS INDICATED ABOVE. 31. TO SUM UP, BOTH THE APPEALS ARE PARTLY ALLOWED AS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT TODAY ON THE 1 ST DAY OF JULY, 2019. SD/- SD/- JUSTICE P P BHATT PRAMOD KU MAR (PRESIDENT) (VICE PRESIDENT) AHMEDABAD, DATED THE 1 ST DAY OF JULY, 2019 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ETC TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ..ORDER PREPARED AS PER 9 PAG ES MANUSCRIPTS OF HONBLE VP - ATTACHED.01.7.19.... . 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 01.07.2019 ......... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 01.07.2019... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: 01.07.19 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .... 01.07.2019.. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......