M/s Sangeetha Mobiles Pvt Ltd , Bangalore V. Addli Commissioner of Income Tax Range-12 , Bangalore

ITA 720/BANG/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1213 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 30-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: V SRINIVASAN
• Keywords: Depreciation

Judgement Text

ITA.720/BANG/2018 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU BEFORE SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A NO.720/BANG/2017 (ASSESSMENT YEAR : 2010-11) M/S. SANGEETHA MOBILES P LTD, NO.37, SRINIVASA NILAYA, SANNIDHI ROAD, BASAVANAGUDI, BENGALURU 560 004 .. APPELLANT PAN : AAMCS5916J V. ADDL. COMMISSIONER OF INCOME-TAX, RANGE 12, BENGALURU .. RESPONDENT ASSESSEE BY : SHRI. V. SRINIVASAN, ADVOCATE REVENUE BY : SHRI. R. N. SIDDAPPAJI, ADDL. CIT HEARD ON : 20.11.2018 PRONOUNCED ON : 28.11.2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THE PRESENT APPEAL IS FILED BY THE ASSESSEE AGAINS T THE ORDER OF THE CIT (A) -6, BENGALURU, DT.27.01.2017, FOR THE A SSESSMENT YEAR 2010-11, ON THE FOLLOWING EFFECTIVE GROUND : ITA.720/BANG/2018 PAGE - 2 2. THE LEARNED CIT (A) IS NOT JUSTIFIED IN SUSTAINI NG THE DISALLOWANCE OF A SUM OF RS.8,90,704/- BEING THE DE PRECIATION ON INTERIORS CLAIMED BY THE APPELLANT FORMING PART OF THE ACQUISITION OF THE ASSETS AND BUSINESS OF M/S. WAVE COMMUNICATION UNDER THE FACTS AND IN THE CIRCUMSTAN CES OF THE APPELLANTS CASE. 02. AT THE OUTSET, THE LD. AR HAS DRAWN OUR ATTENTI ON TO PARAS 5 AND 6 OF THE ORDER OF THE CIT (A), WHICH READ AS UN DER : 5. IN THIS CONTEXT, IT IS NOTED THAT THE APPELLANT HAD CAPITALISED ASSETS TAKEN OVER BY IT FROM WAVE COMMU NICATIONS TO THE EXTENT OF RS.1,79,59,105/-. THE APPELLANT H AD FILED A LETTER FROM WAVE COMMUNICATIONS DATED 03/02/2010 WH EREIN IT WAS STATED THAT A SUM OF RS.1,18,76,051/- WAS PAID FOR INTERIORS OF VARIOUS SHOPS ACQUIRED BY APPELLANT FR OM WAVE COMMUNICATIONS. ITEMS ACQUIRED BY APPELLANT FROM W AVE COMMUNICATIONS INCLUDED COMPUTERS, TABLES, CHAIRS, AIR- CONDITIONERS, LAPTOPS ETC., 6. IN THIS CONTEXT, IT MAY BE NOTED THAT THE SAID F URNITURE AND FIXTURES WERE PUT TO USE BY APPELLANT FOR LESS THAN 180 DAYS SINCE THE SAME WERE ACQUIRED ON 03/02/2010. A S PER 2 ND PROVISO OF SECTION 32, DEDUCTION ON DEPRECIATION WI LL BE ALLOWABLE @ 50% ONLY ON ELIGIBLE ASSETS IF ASSETS / FURNITURE & FIXTURES ACQUIRED DURING THE RELEVANT FINANCIAL YEA R ARE PUT TO USE FOR LESS THAN 180 DAYS DURING THE RELEVANT FINA NCIAL YEAR. 03. ON THE OTHER HAND THE LD. DR RELIES UPON THE OR DER PASSED BY THE CIT (A). 04. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE CIT (A) HAS ALLOWED THE DEPRECIATIO N TO THE EXTENT OF 50% AS THE ASSETS WERE ACQUIRED ON 03.02.2010, W HICH WAS LESS THAN 180 DAYS AND THEREFORE THE ASSESSEE WAS ENTITL ED TO THE DEPRECIATION AT THE RATE OF 50% ONLY AND NOT AT THE RATE CLAIMED BY THE ASSESSEE, IN THE APPEAL BEFORE US. WE FIND JUS TIFICATION IN THE ACTION OF THE CIT (A) AND HENCE WE UPHOLD THE ORDER OF THE CIT (A). ITA.720/BANG/2018 PAGE - 3 05. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH DAY OF NOVEMBER, 2018. SD/- SD/- (A. K. GARODIA) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER BENGALURU DATED : 28.11.2018 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, BANGALORE.