ITO, New Delhi V. M/s. Cairs Computers Aided Information & Research Service Pvt. Ltd., New Delhi

ITA 6458/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7281 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 15-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 27-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V R SONBHADRA
• Assessee Lawyers: SANJEEV KAPOOR
• Keywords: Depreciation
• Section: 32; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.6458/DEL/2014 ASSESSMENT YEAR : 2010-11 ITO, WARD-5(3), NEW DELHI. VS. CAIRS COMPUTERS AIDED INFORMATION & RESEARCH SERVICES PVT. LTD., D-36, BASEMENT, NDSE PART-II, NEW DELHI. PAN: AAACC1968Q (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJEEV KAPOOR, CA DEPARTMENT BY : SHRI V.R. SONBHADRA, SR. DR DATE OF HEARING : 15. 06.2016 DATE OF PRONOUNCEMENT : 15.06.2016 ORDER THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 4.9.2014 IN RELATION TO THE ASSESS MENT YEAR 2010-11. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DELETION OF ADDITION OF RS.61,34,096/- MADE ON ACCOUNT OF DISAL LOWANCE OF DEPRECIATION ON POINT OF SALES TERMINALS IGNORING T HE FACT THAT THE ITA NO.6458/DEL/2014 2 PROVISIONS OF SECTION 32 WERE NOT SATISFIED FOR CLA IMING DEPRECIATION AS THE ASSETS (POS TERMINALS) WERE NOT PUT TO USE FOR THE PURPOSE OF BUSINESS. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS ENGAGED IN THE BUSINESS OF DISTRIBUTION AND MARKETING OF ONLIN E LOTTERIES ORGANIZED BY THE GOVERNMENT OF NAGALAND. THE ASSESSEE APPOINTED SOME DISTRIBUTORS IN VARIOUS LOTTERY SELLING STATES. THESE DISTRIBUT ORS HAVE A CHAIN OF STOCKISTS AND RETAILERS THROUGH WHOM THE SALE OF LO TTERY TO THE FINAL CUSTOMERS IS EFFECTED. IN THE ONLINE GAMING SOLUTIO N, THE POINT OF SALE (POS) DATA INSTALLED WITH THE RETAILERS MUST ALWAYS BE CONNECTED TO THE CENTRAL SERVER IN ORDER TO ENABLE THE CUSTOMERS TO PURCHASE THE LOTTERY PLAYING TICKET. THIS ENTAILS UNINTERRUPTED SUPPLY OF POWER AND ONLINE CONNECTIVITY FOR EACH POINT OF SALES. THE AO DENIE D DEPRECIATION BY OBSERVING THAT THE ASSESSEE FAILED TO PROVE THAT TH E PLANT AND MACHINERY (POS TERMINALS) WERE ACTUALLY PUT TO USE DURING THE YEAR UNDER CONSIDERATION. FOLLOWING THE VIEW TAKEN IN EARLIER YEARS, THE AO DISALLOWED DEPRECIATION. THE LD. CIT(A) DELETED TH E ADDITION BY FOLLOWING THE ORDER PASSED BY THE TRIBUNAL FOR THE ASSESSMENT YEARS ITA NO.6458/DEL/2014 3 2008-09 AND 2009-10. THE REVENUE IS AGGRIEVED AGAI NST THE DELETION OF ADDITION. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE RELEVANT MATERIAL ON RECORD. IT IS NOTICED THAT THE SOLITARY ISSUE RA ISED IN THIS APPEAL IS COVERED IN FAVOUR OF THE ASSESSEE BY VIRTUE OF THE TRIBUNAL ORDER PASSED IN FAVOUR OF THE ASSESSEE FOR THE EARLIER YEAR. A COPY OF THE ORDER DATED 29.11.2013 HAS BEEN PLACED ON RECORD IN WHICH SIMIL AR ISSUE HAS BEEN DECIDED IN THE ASSESSEES FAVOUR. IN THE ABSENCE O F ANY DISTINGUISHING FEATURE HAVING BEEN BROUGHT TO MY NOTICE, I UPHOLD THE IMPUGNED ORDER. 5. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 15.06.201 6. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 15 TH JUNE, 2016. DK ITA NO.6458/DEL/2014 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.