Paramount Technologies Ltd., Baroda V. The Dy.CIT.,Circle-4(1), Baroda

ITA 558/AHD/2009

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63240 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 21-11-2012
• Assessment Year: 1995-1996
• Appeal Filed On: 20-02-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D P GUPTA
• Assessee Lawyers: M K PATEL
• Keywords: Depreciation; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, D BENCH, AHMEDABAD BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER I.T.A. NOS. 556 & 557/ AHD/2009 (ASSESSMENT YEARS 1997-98 & 1999-2000 RESPECTIVELY) PARAMOUNT LIMITED, PARAMOUNT COMPLEX, NR. NATUBHAI CIRCLE, RACE COURSE CIRCLE (W), GOTRI ROAD, BARODA-390007 VS. DCIT, CIRCLE 4(1), BARODA PAN/GIR NO. : AABCP6509P I.T.A.NOS.558, 559 & 560/AHD/2009 (ASSESSMENT YEARS 1995-96, 1996-97 & 1997-98 RESPEC TIVELY) PARAMOUNT TECHNOLOGIES LTD., VS. DCIT, CIRCLE 4(1) , A/4, GIDC INDL. ESTATE, MAKARPURA, BARODA BARODA 390010 PAN NO. AABCP6161B (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI M K PATEL, AR RESPONDENT BY: SHRI D P GUPTA, CIT DR DATE OF HEARING: 21.11.2012 DATE OF PRONOUNCEMENT: 14.12.2012 O R D E R PER SHRI A. K. GARODIA, AM:- ALL THESE FIVE APPEALS ARE FILED BY TWO DIFFERENT ASSESSEES. IN THE CASE OF PARAMOUNT LTD., THE APPEAL FOR THE ASSESSME NT YEAR 1997-98 IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) III, BAROD A DATED 15.01.2009 AND FOR THE ASSESSMENT YEAR 1999-2000, THE ORDER OF THE SAME CIT(A) IS DATED I.T.A.NO.556-560 /AHD/2009 2 16.01.2009. IN REMAINING THREE APPEALS BY PARAMOUN T TECHNOLOGIES LTD., ALL THE THREE ORDERS APPEALED AGAINST ARE OF THE SA ME CIT(A) AND ALL ARE DATED 15.01.2009. IN ALL THESE APPEALS, THE ISSUE INVOLVED IS COMMON I.E. REGARDING ALLOWABILITY OF DEPRECIATION ON EQUIPMENT PURCHASED AND LEASED BACK BY THE ASSESSEE TO M P ELECTRICITY BOARD AND R AJASTHAN STAT ELECTRICITY BOARD. THE 2 ND ISSUE INVOLVED IN THESE APPEALS IS REGARDING DISALLOWANCE OF INTEREST/LEASE RENT CHARGES PAID BY THE ASSESSEE TO WIPRO FINANCE LTD. IN I.T.A.NO. 558/AHD/2009, ONE MORE I SSUE IS THERE REGARDING DISALLOWANCE OF RS.2 LACS PAID BY PARAMOU NT TECHNOLOGIES LTD. TOWARDS CONSULTANCY CHARGES TO WIPRO FINANCE LTD. A ND KOTAK MAHENDRA FINANCE LTD. 2. AT THE VERY OUTSET, IT WAS SUBMITTED BY THE LD. A.R. THAT NOW, THERE IS A DECISION OF SPECIAL BENCH OF THE TRIBUNAL AVAI LABLE ON THIS ISSUE REGARDING ALLOWABILITY OF DEPRECIATION RENDERED IN THE CASE OF INDUSIND BANK LTD. VS ADDL. CIT AS REPORTED IN I.T.A.NO. 656 6/MUM/2002 AND IT 606/MUM/2003 DATED 14.03.2012 (SB). HE FURTHER SUBM ITTED THAT THIS DECISION OF SPECIAL BENCH OF THE TRIBUNAL IS A RECE NT DECISION RENDERED ON 14.03.2012 AND HENCE, THE SAME WAS NOT AVAILABLE AT THE TIME WHEN LD. CIT(A) DECIDED THIS ISSUE IN THE YEAR 2009 AND, THE REFORE, THERE SHOULD BE A FRESH DECISION IN ALL THESE CASES IN THE LIGHT OF THIS DECISION OF SPECIAL BENCH OF THE TRIBUNAL. 3. LD. D.R. OF THE REVENUE ALSO AGREED TO THIS PRO POSITION AND HENCE, WE SET ASIDE THE ORDER OF LD. CIT(A) IN ALL THESE C ASES AND RESTORE THE MATER BACK TO THE FILE OF THE A.O. FOR A FRESH DECI SION. THE A.O. SHOULD DECIDE THE ISSUE REGARDING ALLOWABILITY OF DEPRECIA TION IN THE LIGHT OF THIS DECISION OF SPECIAL BENCH OF THE TRIBUNAL CITED BY THE LD. A.R. BEFORE US AS NOTED ABOVE AND CONSEQUENTLY, HE SHOULD ALSO DEC IDE AFRESH THE ISSUE REGARDING ALLOWABILITY OF INTEREST / LEASE CHARGES PAYMENT AND ALSO ABOUT I.T.A.NO.556-560 /AHD/2009 3 ALLOWABILITY OF CONSULTANCY CHARGES OF RS.2 LACS IN ONE OF THE APPEALS. NEEDLESS TO SAY, THE A.O. SHOULD PROVIDE REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT, ALL THESE FIVE APPEALS OF THE ASS ESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE M ENTIONED HEREINABOVE. SD./- SD./- (KUL BHARAT) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER SP COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD BY ORDER 6. THE GUARD FILE AR,ITAT,AHMEDABAD 1. DATE OF DICTATION 06/12/12 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 07/12/12.OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 14/12/2012 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.14/12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 14/1 2/2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. .