Sayaji Hotels Limited, Vadodara V. The ACIT, Circle-1(2), Baroda

ITSSA 109/AHD/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6514 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 26-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 01-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: DIVYAKANT PARIKH CA
• Keywords: Depreciation
• Section: 153A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD , , BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER (SS) ./ I.T(SS).A. NO.109/AHD/2016 ( / ASSESSMENT YEAR : 2010-11) SAYAJI HOTEL LIMITED OPP. RAJSHREE TALKIES KALAGHODA SAYAJIGUNJ,VADODARA-390005 / VS. THE ACIT CIRCLE-1(2) BARODA # ./ ./ PAN/GIR NO. : AADCS 2086 A ( #& / APPELLANT ) .. ( '#& / RESPONDENT ) #&( / APPELLANT BY : SHRI DIVYAKANT PARIKH, CA '#& )( / RESPONDENT BY : SHRI LALIT P.JAIN, SR.DR *+ ), / DATE OF HEARING 09/01/2019 -./0 ), / DATE OF PRONOUNCEMENT 26/ 02/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTAN CE OF THE ASSESSEE AGAINST THE APPELLATE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-1, VADODARA [CIT(A) IN SHORT] DATED 29/01/2016 ARISING IN THE ASSESSMENT ORDER PASSED UNDER S. 153A R.W.S .143(3) OF THE INCOME IT(SS)A NO.109/ AHD/2016 SAYAJI HOTELS LTD. VS. ACIT ASST.YEAR 2010-11 - 2 - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'THE ACT' ) DATED 31/03/2013 RELEVANT TO ASSESSMENT YEAR (AY) 2010-11. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE R EAD AS UNDER:- 1. THE LD. CIT(A)-1, VADODARA HAS ERRED IN LAW AND FA CTS IN BY HOLDING THAT THE PURCHASE OF MATERIAL FROM M/S.ANSH U MERCANTILE PVT.LTD. OF RS.15,47,884/- WERE NOT GENU INE AND THEREON DIRECTING THAT DEPRECIATION ON THE SAID MAT ERIAL, WHICH WAS USED FOR CAPITAL PURPOSES, BE DISALLOWED. THE LD.CIT(A)-1, VADODARA HAS FAILED TO APPRECIATE THE FACTUAL EVIDENCES IN SUPPORT OF THE SAID PURCHASES AND HAS FURTHER FAILED TO APPRECIATE THAT INFORMATION FROM SALES TA X DEPARTMENT, WHERE THE APPELLANT WAS NOT GRANTED ANY OPPORTUNITY FOR CROSS EXAMINATION CANNOT BE THE BAS IS OF ANY ADDITION/DISALLOWANCE. THE LD.CIT(A)-1 HAS FAILED TO APPRECIATE THE PREVAILING JUDICIAL DECISION IN THE MATTER. 2. THE LD.CIT(A)-1, VADODARA HAS ERRED IN NOT PASSING APPROPRIATE ORDER IN RESPECT OF APPEAL GROUNDS NO.( V) AND (VI) IN RESPECT OF WHICH DETAILED SUBMISSIONS HAVE ALREA DY BEEN MADE BY THE APPELLANT. 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LD.A R FOR THE ASSESSEE, AT THE OUTSET, SUBMITTED THAT THE ASSESSE E IS NOT SERIOUSLY AGGRIEVED FOR THE DISPUTE RAISED AS PER GROUND NO.1 OF ITS APPEAL AS AFTER THE ALLOWANCES TO DEPRECIATION THE EFFECT WILL BE R EVENUE NEUTRAL. THE IT(SS)A NO.109/ AHD/2016 SAYAJI HOTELS LTD. VS. ACIT ASST.YEAR 2010-11 - 3 - LD.AR ACCORDINGLY DID NOT SEEK TO PRESS THE AFORESA ID GROUND. GROUND NO.1 IS ACCORDINGLY DISMISSED AS NOT PRESSED. 4. AS REGARDS SECOND GROUND, THE LD.AR FOR THE ASSE SSEE ADVERTED OUR ATTENTION TO GROUND NOS.(V) AND (VI) OF ITS APPEAL BEFORE THE CIT(A) AND CONTENDED THAT AFORESAID GROUNDS HAVE NOT BEEN DISP OSED OF BY THE CIT(A) DESPITE SPECIFIC SUBMISSIONS MADE IN THIS RE GARD. 5. THE LD.AR ACCORDINGLY SUBMITTED THAT THE AFORESA ID GROUND MAY BE REMITTED BACK TO THE FILE OF CIT(A) FOR ADJUDICA TION OF THE PENDING GROUNDS IN ACCORDANCE WITH LAW. 6. IN TERMS OF PROVISIONS OF SECTION 250(6) OF THE INCOME TAX ACT, 1961, THE CIT(A) IS UNDER STATUTORY DUTY TO DISPOS E OF THE APPEAL ON ALL GROUNDS RAISED BEFORE IT CITING REASONS FOR ITS DEC ISION. 7. THE LD.DR COULD NOT CONTROVERT THE ASSERTIONS MA DE ON BEHALF OF THE ASSESSEE THAT TWO OF ITS GROUNDS HAVE NOT BEEN DISPOSED OF BY THE CIT(A). CONSEQUENTLY, WE FIND MERIT IN THE PLEA OF THE ASSESSEE FOR REMITTING THE ISSUE BACK TO THE FILE OF THE CIT(A) FOR DISPOSAL OF GROUND NO.(V) AND (VI) OF APPEAL BEFORE HIM IN ACCORDANCE WITH LAW. CONSEQUENTLY, GROUND NO.2 OF APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. IT(SS)A NO.109/ AHD/2016 SAYAJI HOTELS LTD. VS. ACIT ASST.YEAR 2010-11 - 4 - 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 26/ 02/2019 SD/- SD/- ( ) ( ) ( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 26/ 02 /2019 4..*,.*../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. #& / THE APPELLANT 2. '#& / THE RESPONDENT. 3. 567, 8, / CONCERNED CIT 4. 8, ( ) / THE CIT(A)-1, VADODARA 5. 9:;,*67 , 67 0 , 5 / DR, ITAT, AHMEDABAD 6. ;<+ / GUARD FILE. / BY ORDER, '9,, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 25.2.2019 (DICTATION-PAD 6- PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 25.2.2019 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.26.2.19 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 26.2.19 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER