Assistant Commissioner of Income-Tax -2(1), RAIPUR (CG) V. K.A.Pappachan Construction Private Limited, RAIPUR (CG)

ITA 57/BIL/2011

• Counselvise Citation: 5724714 RSA 2011
• Duration Of Justice: 3 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 01-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K JAIN
• Assessee Lawyers: G S AGARWAL
• Keywords: Depreciation; Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL,BENCH -RAIPUR . .. . . .. . , ,, , ! ! ! !, ,, , . .. . . .. . BEFORE S/SH.H.L.KARWA,PRESIDENT AN D RAJENDRA,ACCOUNTANT MEMBER ./ ITA NO.57/BLPR/2011- # # # # / // / ASSESSMENT YEAR -2003-04 ASSTT. COMMISSIONER OF INCOME TAX 2(1), RAIPUR V/S. K.A. PAPPACHAN CONSTRUCTION P. LTD., M-4, RING ROAD, KIRANDUL, DANTEWADA PAN: AACCK 2931 P ( ) / // / APPELLANT ) ( *+) / RESPONDENT ) REVENUE BY : SH. D.K. JAIN, DR ASSESSEE BY : SH. G.S. AGARWAL, C.A. - /DATE OF HEARING : 17-12-2014 - /DATE OF PRONOUNCEMENT : 17-12-2014 # # # # , 1961 1961 1961 1961- - - - 254 254254 254( (( (1 11 1) )) ) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA,AM < << < = = = =, ,, , ! ! ! ! : CHALLENGING THE ORDER DT.26.11.2010 OF THE CIT(A)-, RAIPUR, THE ASSESSING OFFICER (AO) HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. WHETHER IN LAW AND ON THE FACTS AND IN THE CIRCUMST ANCES OF THE CASE, THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWANCE OF RS.3, 67,368/- MADE BY THE AO OUT OF DEPRECIATION ON TRUCK CLAIMED BY THE ASSESSEE ON HI GHER RATE. 2. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH IN LA W AND ON FACTS. 2. DURING THE HEARING BEFORE US, THE DEPARTMENTAL REPR ESENTATIVE (DR STATED THAT THERE WAS DELAY OF 47 DAYS IN FILING THE APPEAL, THAT AN AFFIDAVIT EXPLAINING THE REASONS FOR THE DELAY WAS FILED ALONGWITH THE REQUEST TO CONDONE THE DELAY. WE HAVE GONE THROUGH THE APPLICATION FILED BY THE AO AND ARE CONVINCED THAT THE DELAY IN FILING THE APPE AL WAS BECAUSE OF UNAVOIDABLE CIRCUMSTANCES. CONSIDERING THE FACTS OF THE CASE, THE DELAY IN FIL ING THE APPEAL IS CONDONED. 3. ASSESSEE-COMPANY,ENGAGED IN CIVIL CONSTRUCTION WORK AS WELL AS TRANSPORTATION CONTRACT, FILED ITS RETURN OF INCOME ON 28.11.2003,DECLARING TOTAL INCOME OF RS.42,13,801/-.AO FINALISED THE ASSESSMENT ON 28.03.2006 DETERMINING THE TOTAL INCO ME OF ASSESSEE AT RS.72,88,286/-. THE CASE WAS REOPENED U/S. 147/148 OF THE ACT ON THE ISSUE O F ALLOWANCE OF HIGHER RATE OF DEPRECIATION ON TRUCKS AND FINALLY, VIDE ORDER DATED 24.12.2009 U/S . 143(3)/147, THE AO MADE DISALLOWANCE OF RS.3,67,368/- OUT OF DEPRECIATION ON TRUCKS CLAIMED BY THE ASSESSEE ON HIGHER RATE. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE FLED APPEAL BEFOR E THE FIRST APPELLATE AUTHORITY (FAA), WHO DELETED THE DISALLOWANCE MADE BY THE AO AMOUNTING T O RS.3.67 LACS. 4. DURING THE COURSE OF HEARING BEFORE US, THE AUTHORI ZED REPRESENTATIVE (AR) STATED THAT THE TAX EFFECT WAS LESS THAN 3 LACS. THE DR FAIRLY CONCEDED THAT THE MATTER IS COVERED BY THE NOTIFICATION 2 ITA NO. 57/BLPR/2011- ACIT VS. K.A.PAPACHAN CONSTN. ISSUED BY THE CBDT ON 15.05.2008 (INSTRUCTION NO. 0 5/2008). CONSIDERING THE LOW TAX EFFECT, THE APPEAL FILED BY THE AO IS REJECTED. AS A RESULT, THE APPEAL FILED BY THE AO STANDS D ISMISSED. #@ A B - - . ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH DECEMBER,2014. - F 17 G ,2014 - . SD/- SD/- (H.L.KARWA/ . .. . . .. . ) ( ! ! ! ! / RAJENDRA) PRESIDENT/ = = = = /ACCOUNTANT MEMBER /RAIPUR. G DATE:17.12.2014 - -- - *#HI *#HI *#HI *#HI JI JI JI JI / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / ) 2. RESPONDENT / *+) 3. THE CONCERNED CIT(A)/ K L , 4. THE CONCERNED CIT / K L 5. DR ITAT,RAIPUR BENCH/ I *## , . . ., 6. GUARD FILE/ . +I *# //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.