M/s TRL Riceland Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 6664/DEL/2015

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 5394 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2011-2012
• Appeal Filed On: 15-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANCHAL KHANDELWAL
• Keywords: Depreciation; Opportunity of being heard; Revised return
• Section: 143(3); 139(5)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES I-2: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.NO.6664/DEL./2015 ASSESSMENT YEAR 2011-12 TRL RICELAND PVT. LTD. (EARLIER KNOWN AS M/S TILDA RICELAND PVT. LTD.) EROS CORPORATE TOWERS, LEVEL-15, NEHRU PLACE, NEW DELHI. AAACU0649N VS. DCIT CIRCLE 25(1), NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SATYEN SETHI, ADV. FOR REVENUE : MS. ANCHAL KHANDELWAL, SR. DR DATE OF HEARING : 08.10 .2 018 DATE OF PRONOUNCEMENT : 09 .10 .2018 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF DCIT, CIRCLE 25(2), NEW DELHI DATED 21.10. 2015 FOR AY 2 ITA.NO.6664/DEL./2015 TRL RICELAND PVT. LTD. 2011-12 U/S 143(3) R.W.S. 144C(4) OF THE I.T. ACT, 1961 PASSED IN PURSUANCE TO THE ORDER OF DRP-2 DATED 14.09.2015 . 2. THE ASSESSEE IN THE PRESENT APPEAL HAS CHALLENGE D THE ORDERS OF THE AUTHORITIES BELOW I.E. AO/DRP IN HOLD ING THAT THE ASSESSEE WAS NOT ENTITLED TO DEPRECIATION OF RS. 26 ,47,038/-. 3. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AO PASSED THE DRAFT ASSESSMENT ORDER U/S 143(3) R.W.S. 144C (1) O F THE I.T. ACT DATED 09.03.2015 IN WHICH THE CLAIM OF EXCESS DEPRECIATION WAS CONSIDERED. THE AO NOTED THAT IN THE COMPUTATION OF INCOME ASSESSEE HAS CLAIMED DEPRECIA TION FOR THE YEAR AT RS. 14,12,22,588/-, WHEREAS IN THE DEPR ECIATION CHART FOR THE YEAR AS PER ANNEXURE C OF AUDIT REP ORT, THE FIGURES STAND AT RS. 13,85,75,550/-. IT WAS OBSERV ED THAT THE EXCESS CLAIM OF RS. 26,47,038/- IS NOT ALLOWABLE. THE DRP IN THEIR ORDER CONSIDERED THE GROUND NO. 9 WHICH PERTA INS TO CLAIM OF DEPRECIATION BY THE ASSESSEE IN ITS REVISE D RETURN. THE DRP SIMILARLY FOUND THE CLAIM OF DEPRECIATION EXCES SIVE. SAME 3 ITA.NO.6664/DEL./2015 TRL RICELAND PVT. LTD. GROUND WAS DISMISSED. THE AO IN THE ASSESSMENT ORD ER DID NOT DISCUSS THE ISSUE AND COMPLETED THE ASSESSMENT. 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE FILED REVISED RETURN OF INCOME ON 29.09.2012 FOR AS SESSMENT YEAR UNDER APPEAL, COPY OF WHICH IS FILED AT PAGE 2 8 OF THE PB. PB-27 IS TAX AUDIT REPORT ORIGINALLY FILED AND PB-5 4 IS REVISED STATEMENT OF DEPRECIATION CHART SHOWING THE HIGHER FIGURE AS NOTED BY THE AO. HE HAS SUBMITTED THAT SINCE RETUR N OF INCOME WAS REVISED WITHIN TIME U/S 139(5) OF THE I. T. ACT. THEREFORE, CLAIM OF ASSERSSEE SHOULD BE DISCUSSED I N THE IMPUGNED ORDERS, AS PER LAW. ON THE OTHER HAND, LD . DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. 6. THE ASSESSEE IN THIS CASE, FILED RETURN OF INCOM E ORIGINALLY ON 29.09.2011. THE DEPRECIATION CHART FILED WITH T HE ORIGINAL RETURN OF INCOME IS FILED AT PAGE 27 OF THE PB IN W HICH THE DEPRECIATION FIGURE AS PER TAX AUDIT REPORT WAS RS. 4 ITA.NO.6664/DEL./2015 TRL RICELAND PVT. LTD. 13,85,75,550/-. THE ASSESSEE FILED REVISED RETURN OF INCOME ON 29.09.2012 ALONG WITH THE REVISED DEPRECIATION C HART, COPY OF WHICH IS FILED AT PAGE 54 OF THE PB IN WHICH DEP RECIATION WAS CLAIMED IN A SUM OF RS. 14,12,22,588/-. 7. ACCORDING TO SECTION 139(5) OF THE ACT, IF ANY P ERSON, HAVING FURNISHED A RETURN OF INCOME UNDER SUB SECTI ON (1) OR IN PURSUANCE OF NOTICE ISSUED UNDER SUB SECTION (1) OF SECTION 142, DISCOVERS ANY OMISSION OR ANY WRONG STATEMENT THEREIN, HE MAY FURNISH A REVISED RETURN AT ANY TIME BEFORE THE EXPIRY OF ONE YEAR FROM THE END OF THE RELEVANT ASSESSMENT YEAR OR BEFORE THE COMPLETION OF THE ASSESSMENT, WHICHEVER IS EARLIER. THE ASSESSEE FILED THE REVISED RETURN OF INCOME CLA IMING THEREIN HIGHER DEPRECIATION WHICH IS SUPPORTED BY R EVISED DEPRECIATION CHART PRIOR TO PASSING OF THE DRAFT AS SESSMENT ORDER AS WELL AS BEFORE THE EXPIRY OF ONE YEAR FROM THE END OF THE RELEVANT ASSESSMENT YEAR, THEREFORE, LD. COUNSE L FOR THE ASSESSEE RIGHTLY CONTENDED THAT REVISED RETURN WAS FILED WITHIN TIME ALLOWED AS PER SECTION 139(5) OF THE ACT. THE 5 ITA.NO.6664/DEL./2015 TRL RICELAND PVT. LTD. OBSERVATIONS IN THE DRAFT ORDER ARE, THEREFORE, INC ORRECT. THOUGH THE DRP NOTED THAT ASSESSEE FILED THE REVISE D RETURN OF INCOME BUT THE ISSUE IS NOT DECIDED AS PER REVISED RETURN OF INCOME SUPPORTED BY REVISED DEPRECIATION CHART. TH E AO IN THE IMPUGNED ORDER DID NOT DISCUSS THIS ISSUE. THE REFORE, THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE AO/TPO. 8. WE, ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUT HORITIES BELOW AND RESTORE THIS ISSUE TO THE FILE OF AO/TPO WITH THE DIRECTION TO RE-DECIDE THE ISSUE AS PER REVISED RET URN OF INCOME FILED BY THE ASSESSEE, STRICTLY IN ACCORDANCE WITH LAW BY GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 09.10.2018 6 ITA.NO.6664/DEL./2015 TRL RICELAND PVT. LTD. *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 08.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 09.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS 09.10.18 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 09.10.18 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 09.10.18 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 09.10.18 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 09.10.18 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER