The DCIT, Circle-8, Ahmedabad V. Sakar Glazed Tiles Pvt.Ltd., Ahmedabad

MA 119/AHD/2018

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 5293 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-07-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 17-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENC H (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI WASEEM AHMED, ACCOUNTANT MEMBER) M.A. NO: 119/AHD/2018 WITH ITA NO. 1588/AHD/13 (IN ITA NO. 1588/AHD/2013) (ASSESSMENT YEAR: 2009-10) DCIT, CIRCLE-8, AHMEDABAD V/S SAKAR GLAZED TILES PVT. LTD. 401, SHEFALI CENTRE, PALDI CHAR RASTA, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AADCS3760K APPELLANT BY : SHRI MUDIT NAGPAL, SR. D. R. RESPONDENT BY : SHRI SAKAR SHARMA, A.R. ( )/ ORDER DATE OF HEARING : 05 -07-201 9 DATE OF PRONOUNCEMENT : 10 S-07-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS MISC. APPLICATION HAS BEEN FILED BY THE REVENU E AGAINST THE ORDER OF THE ITAT IN ITA NO. 1588/AHD/2013 DATED 29.05.2017 TITL ED AS DCIT VS. SAKAR GLAZED TILES PVT LTD. WHEREIN FOLLOWING CONTENTION HAS BEEN MENTIONED:. M.A. NO 119/ AHD/2018 . A.Y. 2009-10 2 THE ASSESSEE HAS DRAWN THE ATTENTION OF THE BENCH O N THE ISSUE OF DISALLOWANCE OF DEPRECIATION ON CAPITAL SUBSIDY IN AN EARLIER A. Y.2009-10 WHICH WAS ALLOWED BY THE TRIBUNAL RELYING UPON THE CASE LAW IN THE CASE OF SASISRI EXTRACTIONS LTD. VS CIT 122 ITD 428 (VSK). IT WAS ALSO INFORMED THAT THE CA SE LAW RELIED UPON BY THE HON'BLE ITAT WHILE ALLOWING THE APPEAL OF THE ASSES SEE FOR A.Y. 2009-10 IS NOT RELEVANT TO THE ISSUE INVOLVED IN THE INSTANT CASE. THE ASSESSEE HAS REQUESTED TO ALLOW THE INSTANT APPEAL ON THE SIMILAR GROUND FOR THE A.Y. 2011-12. 3. MISCELLANEOUS APPLICATION IS BEING FILED ON THE FOLLOWING GROUND. ' WHETHER THE HON'BLE ITAT HAS ERRED IN LAW AND ON F ACTS IN ALLOWING THE APPEAL OF THE ASSESSEE ON DISALLOWANCE OF DEPRECIAT ION ON CAPITAL SUBSIDY?' 2. IN VIEW OF THE ABOVE, REVENUE HAS REQUESTED ITA T THAT ABOVE SAID GROUND MAY KINDLY BE RE-ADJUDICATED THE ISSUE ON MERIT FOR ASSESSMENT YEAR 2009-10. 3. WE HAVE GONE THROUGH MISC. APPLICATION AND HEARD BOTH THE PARTIES. WE FIND THERE IS INADVERTENT APPARENT MISTAKE IN THE O RDER. THEREFORE, WE RECALL THE ORDER DATED 29.05.2017. 4. IN THE RESULT, M.A. FILED BY THE REVENUE IS ALL OWED. 5. NOW WE COME TO ITA NO. 1558/AHD/2013.THE ABOVE SAID APPEAL WERE DECIDED BY THE ITAT ON 29.05.2017. THEREAFTER, REV ENUE MOVED AN APPLICATION FOR RE-ADJUDICATING THE ISSUE OF DEPREC IATION ON CAPITAL SUBSIDY AND SAME ORDER WAS RECALLED. 6. BUT THE AT SAME TIME, WITH THE CONSENT OF THE PARTY, WE FOUND THAT REVENUE APPEAL HAS LOW TAX EFFECT AND AS PER CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. WE DISMISS THIS APPEAL OF THE REVENUE. M.A. NO 119/ AHD/2018 . A.Y. 2009-10 3 7. IN THE RESULT, MISC. APPLICATION FILED BY THE REVENUE IS ALLOWED AND APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX E FFECT. 8. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 10 - 07 - 2019 SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 10 /07/2019 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD