Kolkata Police Co-Operative Bank Ltd., Kolkata V. JCIT, Range-35, Kolkata, Kolkata

ITA 84/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8104 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 15-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P
• Assessee Lawyers: AGAINST DATED PASSED
• Keywords: Depreciation

Judgement Text

PAGE | 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A, KOLKATA BEFORE SH. P.M.JAGTAP, VICE PRESIDENT & SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.84/KOL/2018 (ASSESSMENT YEAR-2014-15) ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 26.09.2017 PASSED BY CIT(A)-10, KOLKATA FOR AY 2014-15. 2. HEARD BOTH PARTIES AND PERUSED MATERIAL AVAILABLE ON RECORD. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO ON PERUSAL OF THE TAX AUDIT REPORT FOUND THAT THE ASSESSEE INCURRED RS.80,00,000/- AS EXPENSES UNDER DEPRECIATION AND REPAIRS TO FIXED ASSETS. THE AO ASKED THE ASSESSEE TO EXPLAIN WHY SUCH PROVISION UNDER THE HEAD DEPRECIATION AND REPAIRING TO FIXED ASSETS SHOULD NOT BE CONSIDERED FOR ADDITION TO THE TOTAL INCOME OF THE ASSESSEE. THE ASSESSEE REPLIED VIDE ITS SUBMISSIONS DATED 28.09.2016 STATING THAT THERE WAS NO STRUCTURAL ACTIVATION AND THE EXPENDITURE DID NOT HAVE ANY ENDURING OR PERMANENT BENEFIT. THE EXPENDITURE IS IN REVENUE NATURE. FURTHER, IT WAS CONTENDED THAT THE LIABILITY HAS ACCRUED SINCE THE WORK HAD ALREADY COMMENCED AND IT HAS AN OBLIGATION TO HONOUR THOSE COMMITMENTS. THE SAID LIABILITY ACCORDINGLY WAS DULY PROVIDED IN THE KOLKATA POLICE COOPERATIVE BANK LTD., 18, LAL BAZAR STREET, KOLKATA-700001. PAN-AAAAK2462K VS ACIT, CIRCLE-35, KOLKATA. (APPELLANT) (RESPONDENT) APPELLANT BY SH. K.M.ROY, CA RESPONDENT BY SH. C.J.SINGH, JCIT, SR.DR DATE OF HEARING 13.06.2019 DATE OF PRONOUNCEMENT 17.07.2019 ITA NO.84/KOL/2018 (ASSESSMENT YEAR-2014-15) PAGE | 2 BOOKS. THE AO DID NOT ACCEPT THE SUBMISSIONS OF THE ASSESSEE AND HELD THE SAID EXPENSES WAS ON PROVISION OF FUTURE ESTIMATED COST OF COMPUTERIZATION AND WAS NOT RELATED TO RELEVANT YEAR UNDER CONSIDERATION AND ADDED THE SAID SUM TO THE TOTAL INCOME OF THE ASSESSEE. 3. HAVING AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE CHALLENGED THE SAME BEFORE THE CIT(A). IT IS NOTED THAT ACCORDING TO CIT(A) THAT NO COMPLIANCES WERE MADE BY THE ASSESSEE IN THE FIRST APPELLATE PROCEEDINGS AND TREATED THE SAID NON-COMPLIANCE AS ASSESSEE HAS NOTHING TO SAY AND CONFIRMED THE ORDER OF AO. BEFORE US, THE LD.AR SUBMITS THAT NO OPPORTUNITY WAS AFFORDED TO THE ASSESSEE TO CONTEST GROUNDS RAISED IN THE FIRST APPELLATE AUTHORITY AND REFERRED TO PARA 3 OF THE IMPUGNED ORDER. HE PRAYED TO REMAND THE MATTER TO THE FILE OF CIT(A) FOR HIS FRESH CONSIDERATION. WE FIND THAT THERE WAS NO REPRESENTATION ON BEHALF OF THE ASSESSEE IN THE FIRST APPELLATE PROCEEDINGS AND THE CIT(A) AS IT APPEARS FROM PARA 3 OF IMPUGNED ORDER, THAT THE GROUNDS OF APPEAL OF THE ASSESSEE WERE DISMISSED IN THE ABSENCE OF ASSESSEES REPRESENTATION. IN OUR OPINION, THE ASSISTANCE OF ASSESSEE IS REQUIRED BEFORE THE FILE CIT(A) TO SUBSTANTIATE ITS CLAIM. THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO REMAND THE MATTER TO THE FILE OF CIT(A) FOR HIS FRESH CONSIDERATION. THE ASSESSEE IS LIBERTY TO FILE EVIDENCES, IF ANY, IN SUPPORT OF ITS CLAIM. THEREFORE, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.84/KOL/2018 (ASSESSMENT YEAR-2014-15) PAGE | 3 ORDER PRONOUNCED IN THE OPEN COURT ON 17.07.2019. SD/- SD/- (P.M.JAGTAP) (S.S.VISWANETHRA RAVI) VICE PRESIDENT JUDICIAL MEMBER DATE:- 17.07.2019 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT- KOLKATA POLICE COOPERATIVE BANK LTD., 18, LAL BAZAR STREET, KOLKATA-700001. 2. RESPONDENT- ACIT, CIRCLE-35, KOLKATA. 3. CIT-KOLKATA 4. CIT(APPEALS)-KOLKATA 5. DR: ITAT -KOLKATA BENCHES BY ORDER AR/H.O.O ITAT, KOLKATA