M/s Anand Duplex Ltd., New Delhi V. ACIT, Meerut

ITA 5935/DEL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9018 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 21-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJOG KAPOOR
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 1 OF 15 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: A: NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 5935/DEL/2016 ( ASSESSMENT YEAR: 2012-13) M/S ANAND DUPLEX LTD., A-58, SAKET, MEERUT. VS. ACIT, CIRCLE-1, MEERUT. PAN NO: AABCA4927A APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI SANJOG KAPOOR, SR. DR ORDER PER ANADEE NATH MISSHRA, AM [A]. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGA INST THE IMPUGNED APPELLATE ORDER DATED 31/08/2016 PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-, MEERUT [ LD. CIT(A),FOR SHORT] PERTAINING TO ASSESSMENT YE AR 2012-13. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- 1. THAT ON THE FACT AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) HAS ERRED IN SUSTAINING THE DISALLOWANCE OF INTEREST OF RS. 99,14,425/- UNDER PROVISO TO SECTION 36(1)(III) OF THE INCOME TAX ACT , 1961. OBSERVATIONS MADE, INFERENCES DRAWN AND FINDINGS RECORDED IN THI S REGARD ARE NOT ONLY ARBITRARY AND ILLEGAL BUT SMACK OF PREJUDICE AS WEL L. ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 2 OF 15 [B]. VIDE ASSESSMENT ORDER DATED 27/03/2015 PASSED BY ASSESSING OFFICER (AO, FOR SHORT) U/S 143(3) OF THE INCOME TAX ACT, 1961 ( I. T.ACT IN SHORT), AN AMOUNT OF RS. 99,14,425/- CLAIMED AS INTEREST EXPENSES BY THE ASS ESSEE WAS DISALLOWED, AND INCOME WAS ASSESSED AT RS. 2,54,92,465/- AS AGAINST RETURN ED INCOME OF RS. 1,55,78,040/-. THE RELEVANT PORTION OF THE ASSESSMENT ORDER 27/03/ 2015 IS REPRODUCED AS UNDER:- ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 3 OF 15 ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 4 OF 15 ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 5 OF 15 ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 6 OF 15 [B.1] AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESS EE PREFERRED APPEAL BEFORE THE LD. CIT(A). VIDE ORDER DATED 31/08/2016, THE LD. CI T(A) UPHELD THE AFORESAID DISALLOWANCE OF INTEREST EXPENSES, AMOUNTING TO RS. 99,14,425/-. HOWEVER, THE LD. CIT(A) ACCEPTED THE ALTERNATE PRAYER OF THE ASSESSE E TO CAPITALIZE THE ENTIRE AMOUNT OF RS. 99,14,425/- AND ALLOW DEPRECIATION. THE LD. CIT (A) DIRECTED THE AO TO ALLOW CONSEQUENTIAL DEPRECIATION AS PER COMPANIES ACT AND INCOME TAX ACT ON THE BASIS OF ACTUAL DATE OF BEING PUT TO USE. THUS, THE LD. CIT (A) PARTLY ALLOWED THE ASSESSEES APPEAL. THE RELEVANT PORTION OF THE ORDER OF THE LD . CIT(A) IS REPRODUCED AS UNDER:- ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 7 OF 15 ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 8 OF 15 ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 9 OF 15 ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 10 OF 15 ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 11 OF 15 ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 12 OF 15 [C] THIS PRESENT APPEAL HAS BEEN FILED BY THE ASSES SEE AGAINST THE AFORESAID IMPUGNED APPELLATE ORDER DATED 31/08/2016 OF THE LD . CIT(A). AT THE TIME OF HEARING, REVENUE WAS REPRESENTED BY SHRI SANJOG KAPOOR, THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHORT). HOWEVER, NONE WAS PRESENT FROM THE ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 13 OF 15 ASSESSEES SIDE. IN THE ABSENCE OF ANY REPRESENTATI ON FROM ASSESSEES SIDE, AT THE TIME OF HEARING BEFORE US, WE HEARD THE LD. SR. DR; WHO RELIED UPON THE ORDER DATED 27/03/2015 OF THE ASSESSING OFFICER AND THE AFORESA ID IMPUGNED ORDER DATED 31/08/2016 OF THE LD. CIT(A). AFTER PERUSAL OF THE MATERIALS ON RECORD, INCLUDING THE ORDER OF THE AO AND THE AFORESAID IMPUGNED ORDER DA TED 31/08/2016 OF THE LD. CIT(A), WE FIND THAT THE LD. CIT(A) HAS PASSED SPEAKING ORD ER ON MERITS. RELEVANT PORTION OF THE IMPUGNED ORDER OF THE LD. CIT(A) HAS ALREADY BE EN REPRODUCED IN FOREGOING PARAGRAPH [D] OF THIS ORDER. WE FIND THAT THE LD. C IT(A) HAS GIVEN DETAILED REASONS FOR HIS DECISION ON MERITS IN THE AFORESAID IMPUGNED AP PELLATE ORDER DATED 31/08/2016 OF LD. CIT(A). DURING APPELLATE PROCEEDINGS IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) NO MATERIAL HAS BEEN BROUGHT FOR OUR CONSIDE RATION TO PERSUADE US TO TAKE A VIEW DIFFERENT FROM THE VIEW TAKEN BY THE LD. CIT(A) IN THE IMPUGNED ORDER ON MERIT. YET, WE HAVE NOTICED THAT IN THE CONCLUDING PART OF THE AFORESAID IMPUGNED APPELLATE ORDER DATED 31/08/2016, THE LD. CIT(A) HAS DIRECTED THE A O TO ALLOW CONSEQUENTIAL DEPRECIATION AS PER COMPANIES ACT AND INCOME TAX AC T. IN OUR VIEW, DEPRECIATION IS TO BE ALLOWED AS PER INCOME TAX ACT, AND NOT AS PER CO MPANIES ACT, FOR THE PURPOSE OF ASSESSMENT OF ASSESSEES INCOME UNDER I.T. ACT. TH EREFORE, REFERENCE BY LD. CIT(A) TO COMPANIES ACT WAS ERRONEOUS. WE DIRECT THE AO TO A LLOW DEPRECIATION IN ACCORDANCE WITH I.T. ACT, EVEN IF THE DEPRECIATION AS PER COMP ANIES ACT IS LESS AS COMPARED WITH DEPRECIATION AS PER I.T. ACT; SO THAT PREJUDICE CAU SED TO THE ASSESSEE BY ERRONEOUS REFERENCE TO COMPANIES ACT, IF ANY, IS REMOVED. THI S APPEAL IS DISPOSED OFF IN ACCORDANCE WITH THE AFORESAID DIRECTIONS. ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 14 OF 15 [D] IN VIEW OF THE FOREGOING DISCUSSION, THE APPEAL FILED BY ASSESSEE IS DISMISSED. BEFORE WE PART; WE EXPLICITLY CLARIFY THAT THE ASSESSEE WILL BE AT LIBERTY TO APPROACH ITAT FOR RESTORATION OF THE APPEAL IN ACCO RDANCE WITH PROVISO TO RULE 24 OF INCOME TAX (APPELLATE TRIBUNAL), RULES, 1963. IF THE ASSESSEE DOES APPROACH ITAT FOR RESTORATION OF THE APPEAL IN ITAT, THE MATTER WILL BE CONSIDERED IN ACCORDANCE WITH LAW HAVING REGARD TO THE FACTS AND CIRCUMSTANCES. [E] IN THE RESULT, APPEAL FILED BY ASSESSEE IS PARTL Y ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH SEPTEMBER, 2019. SD/- SD/- (H.S. SIDHU ) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED: 30/09/2019 POOJA/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.-5935/DEL/2016. M/S ANAND DUPLEX LTD. PAGE 15 OF 15 DRAFT DICTATED DRAFT PLACED BEFORE AUTHOR APPROVED DRAFT COMES TO THE SR.PS/PS ORDER SIGNED AND PRONOUNCED ON FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER. DATE OF UPLOADING ON THE WEBSITE