Asst.Commissioner of Income Tax, Central Circle-5, Hyderabad V. M/s HST Steels Private Limited, Hyderabad

ITA 570/HYD/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 82311 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 28-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: CAHITANYA KUMAR
• Keywords: Depreciation
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 570/HYD/2014 ASSESSMENT YEAR : 2009-10 ASST. COMMISSIONER OF INCOME- TAX, CENTRAL CIRCLE 5, HYDERABAD. M/S HST STEELS PVT. LTD., HYDERABAD. PAN AAACH5922B (APPELLANT) (RESPONDENT) REVENUE BY SHRI SOLGY JOSE T. KOTTARAM ASSESSEE BY SHRI CAHITANYA KUMAR DATE OF HEARING 30-07-2014 DATE OF PRONOUNCEMENT 05-09-2014 O R D E R PER SAKTIJIT DEY, J.M.: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-I, HYDERABAD DATED 31/01/2014 FOR THE ASSESS MENT YEAR 2009- 10. 2. BRIEFLY THE FACTS OF THE CASE ARE, ASSESSEE A PR IVATE LIMITED COMPANY IS A DEALER AND STOCKIEST IN IRON AND STEEL . FOR THE AY 2009- 10, ASSESSEE FILED RETURN OF INCOME ON 25/09/09 DEC LARING INCOME OF RS. 3,10,98,060. DURING THE SCRUTINY ASSESSMENT PRO CEEDING, THE AO EXAMINED BOOKS OF ACCOUNT AND OTHER DETAILS FILED B Y THE ASSESSEE AND COMPLETED THE ASSESSMENT U/S 143(3) ON 23/12/2 011 DETERMINING THE INCOME AT RS. 3,34,31,389 BY MAKING FOLLOWING D ISALLOWANCES: 1. EXCESS CLAIM OF DEPRECIATION OF RS. 19,32,832/- AT 40% ON VEHICLES USED FOR TRANSPORTING BY RESTRICTING THE C LAIM TO 15%. 2 ITA NO. 570/HYD/2014 M/S HST STEELS PVT. LTD. 2. EXCESS CLAIM OF DEPRECIATION OF RS. 55,236/- ON ELECTRICAL FITTINGS AT 15% BY RESTRICTING IT TO 10%. 3. AGGRIEVED BY THE SAID DISALLOWANCES, ASSESSEE FI LED APPEAL BEFORE THE CIT(A). 4. BEFORE THE CIT(A), ASSESSEE SUBMITTED THAT FOR AYS 2007-08 AND 2008-09, AO HAS ALLOWED DEPRECIATION ON COMMERC IAL VEHICLES AT 40% AND ON ELECTRICAL FITTINGS AT 15%, WHICH WAS CO NFIRMED BY THE ITAT WHILE QUASHING THE ORDER OF CIT PASSED U/S 263 SETTING ASIDE THE ASSESSMENT ORDER U/S 263 WITH A DIRECTION TO REDO T HE SAME AFTER EXAMINING THE CLAIM OF DEPRECIATION. THE CIT(A) AF TER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND FOLLOWING THE DECIS ION OF THE ITAT DIRECTED THE AO TO DELETE THE ADDITION MADE IN RESP ECT OF EXCESS CLAIM OF DEPRECATION ON COMMERCIAL VEHICLES AND ELE CTRICAL FITTINGS AMOUNTING TO RS. 19,32,832/- AND RS. 55,236/- RESPE CTIVELY. 5. AGGRIEVED BY THE ORDER OF CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 6. WE HAVE HEARD THE PARTIES, PERUSED THE RECORD AN D HAVE GONE THROUGH THE ORDERS OF THE REVENUE AUTHORITIES. WE F IND THAT THE ITAT BEFORE QUASHING THE ORDER OF THE CIT IN AYS 2007-08 AND 2008 RELIED ON THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT I N CASE OF SPECTRA SHARES & SCRIPS PVT. LTD., VS. CIT 354 ITR 35 AND H ELD THAT CONSISTENCY IN THE ASSESSMENT PROCEEDINGS IN THE MA TTER OF CLAIM OF DEPRECIATION HAVE TO BE ADHERED TO. THEREFORE, WE A RE OF THE VIEW THAT THE CIT(A) HAS RIGHTLY DIRECTED THE AO TO DELETE TH E ADDITION MADE IN RESPECT OF EXCESS CLAIM OF DEPRECIATION ON COMMERCI AL VEHICLES AND ELECTRICAL FITTING FOLLOWING THE ORDER OF THE ITAT (SUPRA). WE, THEREFORE, DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A ) AND THE SAME IS UPHELD DISMISSING THE GROUNDS RAISED BY THE REVENUE . 3 ITA NO. 570/HYD/2014 M/S HST STEELS PVT. LTD. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON 05/09/2014. SD/- SD/- (B. RAMAKOTAIAH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JU DICIAL MEMBER HYDERABAD, DATED: 5 TH SEPTEMBER, 2014 KV COPY TO:- 1) ACIT, CENTRAL CIRCLE 5, 8 TH FLOOR, AAYAKAR BHAVAN, L.B. STADIUM ROAD, BASHEERBAGH, HYDERABAD 500 004 2) M/S HST STEELS PVT LTD., PLOT NO. 40/A, IDA, BA LANAGAR, HYDERABAD. 3) CIT(A)-I, HYDERABAD. 4) CIT(CENTRAL), HYDERABAD 5)THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDER ABAD.