R.K. Global Shares & Securities Ltd., New Delhi V. ACIT, New Delhi

ITA 621/DEL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3480 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 22-07-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 09-02-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J B MAHOPATRA
• Keywords: Depreciation; Assessment record

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F : NEW DELHI BEFORE SHRI I.P.BANSAL, JM AND SHRI R.C.SHARMA, AM ITA NO.621/DEL/2010 ASSESSMENT YEAR : 2002-03 M/S R.K.GLOBAL SHARES & SECURITIES LIMITED, 5, 2 ND FLOOR, SAGAR APARTMENTS, 6, TILAK MARG, NEW DELHI. PAN NO.AAACR5786P. VS. ASSTT.COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-8, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANTOSH PATHAK, CA. RESPONDENT BY : SHRI J.B.MAHOPATRA, CIT-DR. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF CIT(A) DATED 25.11.2009 FOR THE AY 2002-03, IN THE MATTER OF ORD ER PASSED U/S 153A/143(3) OF THE IT ACT. 2. THE BASIC GRIEVANCE OF THE ASSESSEE RELATES TO R ETAINING PART OF DEPRECIATION ON THE COMPUTER INSTALLED BY THE ASSESSEE. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. IN THE COURSE OF ASSESSMENT U/S 153A/143(3), THE AO DECLINED THE ASS ESSEES CLAIM OF DEPRECIATION IN RESPECT OF COMPUTERS WORTH RS.9,20,776/- PURCHAS ED BY IT DURING THE YEAR, ON THE PLEA THAT THE COMPUTER SO PURCHASED WAS WORK IN PROGRESS AND WAS NOT PUT TO USE. 4. BY THE IMPUGNED ORDER, CIT(A) VERIFIED ALL THE E XPENDITURE INCURRED ON COMPUTER AFTER CALLING THE ASSESSMENT RECORDS. COP IES OF BALANCE SHEET AND RETURN OF INCOME AS FILED BY THE ASSESSEE CLEARLY SHOW THA T AS ON 1.4.2001, OPENING ITA-621/DEL/2010 2 BALANCE OF RS.6,12,826/- WAS REFLECTED AS CAPITAL W ORK IN PROGRESS AS COMPUTERS, WHICH HAS BEEN SHOWN AS A DEDUCTION DURING THE YEAR FROM THE GROSS BLOCK AND CLOSING BALANCE WAS NIL. ACCORDINGLY, CONTENTION O F THE ASSESSEE WAS FOUND TO BE CORRECT BY THE CIT(A) WITH REGARD TO THE FACT THAT THE WORK IN PROGRESS OF COMPUTER HAS BEEN TRANSFERRED TO THE HEAD COMPUTER IN SCHEDU LE OF FIXED ASSETS AS ADDITION DURING THE YEAR. AFTER RECORDING DETAILED FINDING AT PARA 2.3, HE ALLOWED ASSESSEES CLAIM OF DEDUCTION IN RESPECT OF COMPUTER INSTALLED DURING THE YEAR EXCEPT COMPUTER PURCHASED FROM M/S PRAGATI SYSTEMS FOR RS. 2,11,500/-. ACCORDINGLY, ADDITION TO THE BLOCK OF COMPUTER DURING THE YEAR W AS ACCEPTED TO THE EXTENT OF RS.7.09,276/- AS AGAINST ASSESSEES CLAIM FOR ADDIT ION OF RS.9,20.776/-. THE CIT(A) OBSERVED THAT COPY OF BILL OF M/S PRAGATI SY STEMS FOR RS.2,11,500/- WAS NOT FOUND IN THE RECORD, THEREFORE DEPRECIATION REL ATING TO IT WAS DECLINED AMOUNTING TO RS.1,26,900/-. ACCORDINGLY, THE CIT(A ) ALLOWED RELIEF TO THE EXTENT OF RS.4,25,789/- AGAINST WHICH THE REVENUE IS NOT I N APPEAL BEFORE US. HOWEVER, THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE PAR T DISALLOWANCE RETAINED BY CIT(A). IT IS CLEAR FROM THE ORDER OF CIT(A) THAT D EPRECIATION WITH REGARD TO COMPUTER PURCHASED FROM M/S PRAGATI SYSTEMS FOR RS. 2,11,500/- WAS DECLINED BECAUSE BILLS WERE NOT FOUND IN THE RECORD. CONTEN TION OF LEARNED AR WAS THAT BILLS OF ENTIRE PURCHASE OF COMPUTERS WORTH RS.9,20 ,776/- WAS THERE IN THE RECORD. IN THE INTEREST OF JUSTICE AND FAIR PLAY, WE RESTOR E THIS GROUND TO THE FILE OF THE AO AND ASSESSEE IS DIRECTED TO AGAIN PLACE ON RECORD T HE BILL OF M/S PRAGATI SYSTEMS FOR RS.2,11,500/- AND AO IS DIRECTED TO VERIFY THE SAME AND CONSIDER ASSESSEES CLAIM FOR DEPRECIATION THEREON. WE DIRECT ACCORDIN GLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 22 ND JULY, 2010. SD/- SD/- (I.P.BANSAL) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 22.07.2010. VK. ITA-621/DEL/2010 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR