Ankith Engineering Corporation, CHENNAI V. ITO, CHENNAI

ITA 665/CHNY/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4514 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 21-10-2013
• Assessment Year: 2001-2002
• Appeal Filed On: 12-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN
• Assessee Lawyers: JHARNA B HARILAL
• Keywords: Depreciation; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NO. 665/MDS/2013 (ASSESSMENT YEAR: 2001-02) M/S. ANKITH ENGINEERING CORPORATION, OLD NO.1A, NEW NO.3A, ARCOT ROAD, VADAPALANI, CHENNAI- 600 026. PAN:AAGFA8212J VS. THE INCOME TAX OFFICER, BUSINESS WARD-III(1), 403, ANNEXE BUILDING, CHENNAI-600 034. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. JHARNA B.HARILAL, FCA RESPONDENT BY : MR. N.MADHAVAN JCIT DATE OF HEARING : 21 ST OCTOBER, 2013 DATE OF PRONOUNCEMENT : 21 ST OCTOBER, 2013 O R D E R PER CHALLA NAGENDRA PRASAD : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-VIII, CHEN NAI DATED 03.01.2013 FOR THE ASSESSMENT YEAR 2001-02 IN CONFIRMING THE PENALTY LEVIED UNDER SECTION 271(1)( C) OF THE ACT ON THE ADDITION MADE TOWARDS EXCESS DEPRECIATIO N ON MACHINERY CLAIMED BY THE ASSESSEE. ITA NO.665/MDS//2013 2 2. AT THE TIME OF HEARING, THE AUTHORIZED REPRESEN TATIVE SUBMITS THAT THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN ITA NO.1858/MDS/2012 DATED 22.03.2013 HAD SET ASIDE THE ORDER OF ASSESSMENT AND RESTORE THE MATTER TO THE FILE O F THE ASSESSING OFFICER IN RESPECT OF THE CLAIM OF DEPREC IATION ON MACHINERY FOR PROPER VERIFICATION AND ADJUDICATION ON THE ISSUE. THE AUTHORIZED REPRESENTATIVE SUBMITS THAT AS THE CO- ORDINATE BENCH OF THIS TRIBUNAL RESTORED THE ADDITI ON IN RESPECT OF EXCESS CLAIM OF DEPRECIATION ON MACHINERY TO THE FILE OF THE ASSESSING OFFICER, PENALTY LEVIED ON SUCH ADDITION MAY ALSO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER. A CO PY OF THE ORDER OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN ITA NO.1858/MDS/2012 DATED 22.3.2013 IS PLACED ON RECOR D. 3. THE DEPARTMENTAL REPRESENTATIVE HAS NO OBJECTION FOR RESTORING THE ISSUE TO THE FILE OF THE ASSESSING OF FICER AS THE QUANTUM WAS ALREADY RESTORED TO THE ASSESSING OFFIC ER. 4. HEARD BOTH SIDES. PERUSED THE ORDERS OF LOWER AUTHORITIES AND THE ORDER OF CO-ORDINATE BENCH OF T HIS TRIBUNAL DATED 22.3.2013, WHEREIN THIS TRIBUNAL HAD SET ASID E THE ITA NO.665/MDS//2013 3 ADDITION IN RESPECT OF DEPRECIATION CLAIMED ON MACH INERY OBSERVING AS UNDER:- 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE UNDISPUTED FACTS OF THE CASE ARE THAT THE ASSESSEE PURCHASED TWO MACHINERIES FOR ` 59,11,360/- AND CLAIMED DEPRECIATION OF ` 6,67,765/- ON THE SAME WHICH WAS DISALLOWED BY THE ASSESSING OFFICER ON THE GROU ND THAT NO EVIDENCE WAS PRODUCED BY THE ASSESSEE TO SHOW THAT THE MACHINERIES WERE PUT TO USE AND CORRESPONDING PRODUCTION WAS MADE BEFORE THE END OF THE FINANCIAL YEAR. 8. THE LD. CIT(A) HAS CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 9. THE LD. AR OF THE ASSESSEE HAS NOW FILED B EFORE US ADDITIONAL EVIDENCES IN THE FORM OF INSTALLA TION CERTIFICATE FROM M/S VIGNESH MACHINE TOOLS DATED 7.3.2013 AND CONFIRMATION FROM M/S SAME DEUTZ- FAHR INDIA (P) LTD. REGARDING DELIVERY OF THE MACHINERIES BEFORE THE END OF THE FINANCIAL YEAR AN D PRAYED FOR ADMISSION OF THESE EVIDENCES AND RESTORI NG THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR READJUDICATING THE ISSUE OF GRANTING OF DEPRECIATIO N TO THE ASSESSEE ON THE SAID MACHINERIES AFTER VERIFYIN G THESE ADDITIONAL EVIDENCES. WE ARE OF THE CONSIDER ED VIEW THAT IT WILL BE IN THE INTEREST OF JUSTICE TO RESTORE THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICE R FOR READJUDICATING THE ISSUE OF GRANTING OF DEPRECIATIO N ON MACHINERIES TO THE ASSESSEE AFTER VERIFICATION OF T HE ADDITIONAL EVIDENCES FILED BEFORE US. WE, THEREFOR E, ADMIT THE ADDITIONAL EVIDENCES FILED BY THE ASSESSE E AND BY SETTING ASIDE THE ORDERS OF THE LOWER ITA NO.665/MDS//2013 4 AUTHORITIES, RESTORE THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR PROPER VERIFICATION AND ADJUDICATION OF THE ISSUE AFRESH. NEEDLESS TO MEN TION THAT THE ASSESSING OFFICER SHALL ALLOW PROPER AND REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THUS, THE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE CIRCUMSTANCES, WE SET ASIDE THE IMPUGNED ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND RES TORE THE ISSUE OF LEVY OF PENALTY TO THE FILE OF THE ASSESSI NG OFFICER AS THE ADDITION MADE IN THE ASSESSMENT WAS ALREADY RES TORED TO THE FILE OF THE ASSESSING OFFICER. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY THE 2 1 ST DAY OF OCTOBER, 2013 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY ) (CHALLA NAGENDRA PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 21 ST OCTOBER, 2013. SOMU COPY TO: (1) APPELLANT (4 ) CIT(A) (2) RESPONDENT (5 ) D.R. (3) CIT (6 ) G.F.