M/s Fibres and Fabrics International Private Limited, Bangalore V. Income Tax Officer, Ward-3(1)(1), Bangalore

MA 104/BANG/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6502 (ITAT-BANGALORE)
• Duration Of Justice: 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 13-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: KEERTHI NARAYANAN
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH C BEFORE S HRI SUNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI JASON P BOAZ , ACCOUNTANT MEMBER M.P. NO.104/BANG/2018 (IN I.T . A. NO S . 105 & 106 /BANG/20 17 (ASSESSMENT YEAR S : 20 06 - 07 & 2007 - 08 ) M/S. FIBRES & FABRICS INTERNATIONAL PVT. LTD., NO.21, E1, II PHASE, INDL. AREA, PEENYA, BANGALORE - 560 058 . . PETITIONER . VS. INCOME TAX OFFICER, WARD 3(1)(1), BANGALORE. .. RESPONDENT. PETITIONER BY : SHRI KEERTHI NARAYANAN, CA R E SPONDENT BY : DR. P.V. PRADEEP KUMAR, ADDL. CIT (D.R) . DATE OF H EARING : 4.5.2018. DATE OF P RONOUNCEMENT : 4.5.2018. O R D E R PER SHRI JASON P BOAZ, A .M . : THIS MISCELLANEOUS PETITION (M.P.), FILED BY THE ASSESSEE, IS IN RESPECT OF THE TRIBUNAL S ORDER IN ITA NOS.105 & 106/BANG/2017 DT.22 .12.2017. 2. ACCORDING TO THE PETITIONER, A MISTAKE OF FACT APPARENT ON THE FACE OF THE RECORD HAS CREPT INTO THE TRIBUNAL S ORDER DT.22.12.2017 IN 2 M P NO.104 /BANG/201 8 THE CASE ON HAND. IN THIS REGARD, IN THIS M.P. THE PETITIONER HAS PUT FORTH SUBMISSIONS AT P ARA 2, WHICH IS EXTRACTED HEREUNDER : - RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE APEX COURT IN THE CASE OF CIT VS. SMIFFS SECURITY LTD. (SUPRA), THE HON'BLE HIGH COURTS REFERRED TO (SUPRA) AND THE DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBU NAL IN ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2008 - 09 & 2009 - 10 (SUPRA), WE HOLD THAT THE ASSESSEE IN THE CASE ON HAND IS ENTITLED TO BE ALLOWED DEPRECIATION ON GOODWILL. IN THIS VIEW OF THE MATTER, WE UPHOLD THE IMPUGNED ORDERS OF THE CIT (APPEALS) FOR THE TWO CONCERNED ASSESSMENT YEARS AND DIRECT THE ASSESSING OFFICER TO ALLOW THE ASSESSEE'S CLAIM OF DEPRECIATION ON GOODWILL. CONSEQUENTLY, THE GROUND S NOS.1 TO 7 RAISED BY REVENUE ARE DISMISSED. IN THE PARA 4 OF PAGE 5 - IN THE RESULT, REVENUE S APPEALS FOR ASSESSMENT YEARS 2008 - 09 & 2009 - 10 ARE DISMISSED. 3. WE HAVE HEARD BOTH PARTIES IN THE MATTER AND PERUSAL AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD. IN OUR VIEW, THIS IS A MISTAKE APPARENT ON THE FACE OF TRIBUNAL S ORDER AND IS RE QUIRED TO BE CORRECTED. W E AMEND THE PARAS 3.3.2 AND 4 UNDER : - 3.3.2 RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE APEX COURT IN THE CASE OF CIT VS. SMIFFS SECURITY LTD. (SUPRA), THE HON'BLE HIGH COURTS REFERRED TO (SUPRA) AND THE DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2006 - 07 & 2007 - 08 (SUPRA), WE HOLD THAT THE ASSESSEE IN THE CASE ON HAND IS ENTITLED TO BE ALLOWED DEPRECIATION ON GOODWILL. IN THIS VIEW OF THE MATTER, WE UPHOLD THE IM PUGNED ORDERS OF THE CIT (APPEALS) FOR THE TWO CONCERNED ASSESSMENT YEARS AND DIRECT THE ASSESSING OFFICER TO ALLOW THE ASSESSEE'S CLAIM OF DEPRECIATION ON GOODWILL. CONSEQUENTLY, THE GROUNDS NOS.1 TO 7 RAISED BY REVENUE ARE DISMISSED. 3 M P NO.104 /BANG/201 8 4. IN THE RES ULT, REVENUE S APPEALS FOR ASSESSMENT YEARS 2006 - 07 & 2007 - 08 ARE DISMISSED. 4. IN THE RESULT, THE MISC. PETITION FOR ASSESSMENT YEARS 2006 - 07 & 2007 - 08 ARE ALLOWED AS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON THE 4 TH MAY, 2 018 . SD/ - ( SUNIL KUMAR YADAV ) ACCOUNTANT MEMBER SD/ - ( JASON P BOAZ ) JUDICIAL MEMBER BANGALORE, DT. 04.05.2018 . *REDDY GP COPY TO : 1 APPELLA NT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.