Appeal Details
Counselvise Citation
[2015] 140 COUNSELVISE.COM (IT) 99445 (ITAT-JAIPUR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 5 month(s) 9 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-10-2015
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Assessment Year
2008-2009
Appeal Filed On
21-05-2013
Judgement Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 545/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 M/S. SONI HOSPITAL (P) LTD. 11,CHETAK MARG, JLN MARG JAIPUR CUKE VS. THE ACIT CIRCLE- 5 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAGCS 9508 N VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI A.K. JAIN , CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT -DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 28/10/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 30 /10/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 06-03-2013 FOR THE ASSESSM ENT YEAR 2008-09 WHEREIN THE SOLITARY GROUND OF THE ASSESSEE IS AS U NDER:- THE LD. CIT(A) ERRED IN UPHOLDING THE DISALLOWANC E OF RS. 1.00 LAC BEING AMOUNT OF DEPRECIATION ATTRIB UTABLE TO CONSTRUCTION EXPENSES DISALLOWED FOR ALLEGED NON- VERIFICATION OF SUCH EXPENSES. 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEES HOSPITAL BUILDING IS ALREADY IN BLOCK ASSETS. IN THIS YEAR, THERE WERE A DDITIONS TO THE BUILDING. THE AO WAS OF THE VIEW THAT THE ASSESSEE HAS INCURR ED 20% LESS COST AS ITA NO. 545/JP/2013 SONI HOSPITALS (P) LTD. VS. ACIT, CIRCLE- 5 , JAIP UR . 2 THE ASSESSEE COULD NOT PRODUCE COMPLETE BILLS. CONS EQUENTLY, THE DEPRECIATION ON THE DISALLOWED AMOUNT OF RS. 10.00 LACS WAS DISALLOWED. 2.2 AGGRIEVED, THE ASSESSEE PREFERRED FIRST APPEAL WHERE DISALLOWANCE ON DEPRECIATION WAS UPHELD. 2.3 THE ASSESSEE CONTENDS AS UNDER:- THE AMOUNT INVOLVED IN THE GROUND OF APPEAL PERTAINS TO THE AMOUNT OF RS. 50.00 LACS INCURRED B Y THE COMPANY FOR WORK DONE UNDER SELF SUPERVISION WHICH CONSIST OF MATERIAL AS WELL AS LABOUR. THE MATERIAL PURCHAS ED WAS DULY SUPPORTED BY SUPPLIERS BILLS WHEREAS THE LABOU R PAYMENTS WERE MADE ON SELF MADE VOUCHERS FOR THE RE ASON THAT THEY WERE HIRED FROM CHOKHTI ON DAILY WAGES BA SIS AND WERE UNEDUCATED, WERE FROM NEARBY VILLAGES. THERE W ORK WAS MONITORED BY THE SUPERVISORY STAFF OF THE COMPA NY AND AFTER VERIFICATION OF WORK DONE, THEY WERE PAID THR OUGH VOUCHERS PREPARED BY THE STAFF OF THE COMPANY, AND THEIR SIGNATURE / THUMB IMPRESSION WERE TAKEN ON VOUCHERS IN TOKEN OF ACCEPTANCE OF PAYMENT. THE MONETARY VALUE OF CONSTRUCTION TRANSFERRED FROM CAPITAL WIP WAS TRANSFERRED TO BUILDING ACCOUNT ON THE BASIS OF CERTIFICATE ISSUED BY CHARTERED ENGINEER, A COMP ETENT PROFESSIONAL OF THE CIVIL CONSTRUCTION. THE CONSTRU CTION OF BUILDING IS A VISIBLE ITEM AND THE COST OF CONSTRUC TION INCURRED CAN BE EASILY LINKED WITH SUCH VISIBLE CONSTRUCTION. IT IS CONTENDED THAT THE BUILDING BEING PART OF THE BLOCK ASSETS, THE AO CANNOT INTERFERE WITH THE COST OF CONSTRUCTION FOR THE PURPOSE OF DEPRECIATION. THE LD. AR RELIED ON THE FOLLOWING CA SES LAWS:- 1. CIT VS. KONKAN MARINE AGENCIES (2009) 313 ITR 30 8 (KARNATAKA) 2. CIT VS. S.S.P. (P) LTD. (2011) 202 TAXMAN 386 (P&H) ITA NO. 545/JP/2013 SONI HOSPITALS (P) LTD. VS. ACIT, CIRCLE- 5 , JAIP UR . 3 2.4 THE LD. DR SUPPORTED THE ORDERS OF THE AUTHORIT IES BELOW. 2.5 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. I FIND MERIT IN THE ARGUMENTS OF THE LD. COUNSEL FOR THE ASSESSEE. IT HAS NOT BEEN DISPUTED THAT THE BUI LDING HAS BEEN CONSTRUCTED AND THE AMOUNT IN QUESTION HAS BEEN CA PITALIZED TO BUILDING ACCOUNT. THE HOSPITAL BUILDING IS A PART OF BLOCK A SSETS AND THE AO CANNOT REDUCE THE COST ONLY FOR THE PURPOSE OF DEPRECIATIO N. IN VIEW THEREOF, THE DEPRECIATION CLAIMED BY THE ASSESSEE IS ALLOWED. TH US THE APPEAL OF THE ASSESSEE IS ALLOWED. 3.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOW ED ORDER PRONOUNCED IN THE OPEN COURT ON 30/10 /2015. SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30/10/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. SONI HOSPITALS (P) LTD. JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT, CIRCLE- 5, JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 545/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR
Mehul