ACIT, Kota V. M.L. BAHETI HOSPITAL & RESEARCH CENTRE, Kota

ITA 674/JPR/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5331 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 31-07-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ROSHANTA MEENA JCIT DHK
• Assessee Lawyers: VARUN BANSAL
• Keywords: Depreciation; Assessment record

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T; IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH] DQY HKKJR U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO.674 /JP/13 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 THE ACIT, CIRCLE - 1, KOTA CUKE VS. M/S M.L. BAHETI HOSPITAL & RESEARCH CENTRE, 46, VALLABH NAGAR EXTENSION, KOTA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAHFM 0601 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI VARUN BANSAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY : SMT. ROSHANTA MEENA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 12.05.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 12 /05/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)KOTA WHEREIN THE REVENUE HAS TAKEN THE FOLLOW ING GROUND OF APPEAL: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE LD. CIT(A) HAS ERRED IN REDUCING THE ADDITION OF RS. 65,46,20 6/- TO RS. 10,00,206 ON ACCOUNT OF SHORT TERM CAPITAL GAIN. 2. THE BRIEF FACTS AS APPARENT FROM THE ASSESSMENT RECORDS ARE THAT DURING THE YEAR UNDER CONSIDERATION THE APPELL ANT FIRM HAS SOLD ITA NO.674/JP/13 ACIT, CIRCLE-1, KOTA VS. M.L. BAHETI HOSPITAL & RES EARCH, KOTA 2 LAND, HOSPITAL BUILDING AND MEDICAL EQUIPMENT OF I TS KOTA UNIT. THE FIRM IS ALSO RUNNING ANOTHER HOSPITAL UNIT AT JAIPU R BY THE NAME OF BAHETI HOSPITAL. THE FIRM HAS PURCHASED A FLAT AT GOPALPURA BYE PASS, JAIPUR FOR A TOTAL SALE CONSIDERATION OF RS. 55.46 LACS AND THE SAME WAS DEBITED IN THE BUILDING BLOCK WHICH IS ELIGIBLE FOR DEPRECIATION @ 10%. AS A RESULT OF ADDITION OF THE NEW ASSETS IN THE BUILDING BLOCK AND AFTER CONSIDERING THE OPENING WDV THE ASSESSEE HAS DISCLOSED SHORT TERM CAPITAL GAIN OF RS. 11,70,698/-. AS PER THE AO THE FIR, HAS REDUCED THE SHORT TERM CAPITAL GAIN BY DEBITING THE NEW ASSET INSPITE OF THE FACT THAT THE ASSET WHICH WAS PURCHA SED IN THE MONTH OF MARCH, 2009 HAS NOT BEEN USED FOR THE PURPOSE O F BUSINESS. THE AO THEREAFTER ISSUED SHOW CAUSE ON 24.11.2011 AND A FTER CONSIDERING HE REPLY OF THE ASSESSEE DATED 29.11.20 11 PASSED THE ASSESSMENT ORDER ON 30.11.2011 WHEREIN HE ADDED THE AMOUNT OF RS. 65,46,206/- HOLDING THAT THE ASSESSEE HAS NOT P RODUCED ANY EVIDENCE WHICH CAN SUPPORT ITS CLAIM THAT THE BUIL DING WAS USED FOR THE BUSINESS PURPOSES DURING THE YEAR. ACCORDINGLY THE PROPERTY PURCHASED DURING THE YEAR CANNOT BE A PART OF THE BLOCK ASSETS. DURING THE COURSE OF HEARING THE LD. AR SUBMITTED THAT NOT ENOUGH OPPORTUNITY WAS PROVIDED TO THE ASSESSEE TO SUBMIT NECESSARY EVIDENCE IN SUPPORT OF HIS CLAIM AND THE ORDER WAS PASSED BY THE AO WITH UNDUE HASTE. FURTHER THE LD. AR SUBMITTED THA T THE FLAT WAS READY FOR USE FOR PROVIDING STAY FACILITIES TO THE PATIENT AND IT IS NOT NECESSARY THAT FOR THE PURPOSE OF CLAIMING DEPRECIA TION, THE FLAT HAS ITA NO.674/JP/13 ACIT, CIRCLE-1, KOTA VS. M.L. BAHETI HOSPITAL & RES EARCH, KOTA 3 TO BE ACTUALLY OCCUPIED BY THE PATIENT DURING THE Y EAR UNDER CONSIDERATION. IN THIS REGARD THE LD. AR DRAWN A R EFERENCE TO THE DECISION OF DELHI HIGH COURT IN THE CASE OF CIT VS . PANACEA BIOTECH LTD. 324 ITR 311. 2.1 THE LD. DR IS HEARD WHO HAS RELIED ON THE ORDER OF THE AO. 2.2 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. AR OF THE APPELLANT NOT ENOUGH OPPORTUNITY HAS BEEN GRATED TO THE APPELLANT TO ADDUCE NECESSARY EVIDENCES IN SUPPORT OF ITS CLAIM THAT TH E FLAT PURCHASED DURING THE YEAR SHOULD QUALIFY FOR INCLUSION IN T HE BLOCK OF ASSETS WE DEEM IT FIT TO SET ASIDE THE MATTER TO THE FILE OF THE AO WHO SHALL EXAMINE THE MATTER AFRESH AND AFTER PROVIDING NECE SSARY OPPORTUNITY TO THE APPELLANT, THE APPELLANT IS ALSO DIRECTED TO FILE ALL NECESSARY EVIDENCES AND DOCUMENTATION IN SUPPORT OF ITS CLAIM WHICH THE AO SHOULD CONSIDER WHILE DECIDING THE M ATTER AFRESH. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 /0 5/2016. SD/- SD/- (KUL BHARAT) (VIKRAM SINGH YADA V) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 12/ 0 5/2016 ITA NO.674/JP/13 ACIT, CIRCLE-1, KOTA VS. M.L. BAHETI HOSPITAL & RES EARCH, KOTA 4 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- ACIT, CIRCLE-1. KOTA 2. THE RESPONDENT- M/S M.L. BAHETI HOSPITAL, KOTA 3. THE CIT(A) KOTA 4. THE CIT-KOTA 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 674/JP/13 ) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR