PPG ASIAN PAINTS P.LTD, V. ASST CIT LTU,

MA 136/MUM/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2399 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2008-2009
• Appeal Filed On: 25-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMIR KUMAR
• Keywords: Depreciation; Revenue expenditure
• Section: 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI .. , !'# $ %$$ $&, ' !'# !( BEFORE SHRI P.M. JAGTAP, AM AND SHRI VIVEK VARMA , JM M.A. NO.136/MUM/2014 (ARRISING OUT OF I.T.A. NO. 2919/MUM/2013) ( ') & $*& / ASSESSMENT YEAR:2008-09) M/S PPG ASIAN PAINTS PVT. LTD. (FORMALLY KNOWN AS ASIAN PPG INDUSTRIES LTD.) 158, VIDYA NAGRI MARG, DANI WOOLTEX COMPUND, KALINA, SANTACRUZ, MUMBAI-400498 ) / VS. ASST. COMMISSIONER OF INCOME TAX, LARGE TAXPAYER UNIT (ACIT- LTU), CENTRE I WORLD TRADE CENTRE, CUFF PARADE, MUMBAI-400005 ./ PAN : AAACA8832H ( ASSESSEE ) .. (RESPONDENT) ASSESSEE BY : SHRI MADHUR AGRAWAL REVENUE BY : SHRI SUMIR KUMAR ! '#$ %& '() / DATE OF HEARING : 01/08/2014 *+,- %& '() / DATE OF PRONOUNCEMENT : 01/08/2014 ./0 / O R D E R PER VIVEK VARMA , JM : THE ASSESSEE HAS FILED MISCELLANEOUS APPLICATION (M A) WHEREIN THE FOLLOWING WAS POINTED OUT. THE HONBLE ITAT HAS PASSED THE ORDER IN RESPECT OF THE CAPTIONED APPEAL ON MARCH 12, 2014, PARTLY ALLOWING THE APPLICANTS APP EAL. THE APPLICANT IN ITS GROUNDS OF APPEAL HAD RAISED T OTALLY SIX GROUNDS OF APPEAL NUMBERED FROM GROUND NO.1 TO 6. THE HONBLE ITAT, AT PRA 43 OF ITS ORDER REJECTED GROUND NO.1 OF THE APPLICANT. THE HONBLE ITAT , AT PARA 44 TO 55 DEALT WITH GROUND NO.2,3, & 4 AND AT PARA 54 ALLOWED GROUND NO.2 AND AT PARA 53 REJECTED GROUND NO.3 & 4. THE APPLICANT HUMBLY SUBMITS THAT GROUND NO.2 DEALT H WITH ALLOWING NON- COMPETE FEES PAID AS A REVENUE EXPENDITURE AND WITH OUT PREJUDICE TO GROUND NO.2, GROUND NO. 3 WAS REGARDING ALLOWING DEPRECIAT ION ON NON-COMPETE FEES AS AN INTANGIBLE ASSET. 2 MA NO136/MUM/2014 HOWEVER GROUND NO.4 DEALTH WITH ALLOWING DEPRECIATI ON ON GOODWILL OF RS.3,.23,15,044/-, WHICH WAS NOT CONNECTED WITH GRO UND NO.2 & 3. FOR READY REFERENCE, GROUND NO. 4 IS REPRODUCED BELOW: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE HONBLE CIT(A)-LTU ERRED IN NOT GRANTING DEPRECIATI ON ON GOODWILL OF RS.3,23,15,044/- ON THE GROUND THAT GOODWILL IS NOT COVERED U/S 32(1)(II) OF THE ACT. THE APPELLANT PRAYS THAT AO BE DIRECTED TO ALLOW DE PRECIATION ON GOODWILL PAID AS PER THE PROVISION OF SECTION 32 OF THE ACT. THE APPLICANT SUBMITS THAT THIS GROUND NO.4 IS DIFF ERENT FROM GROUND NO.2 & 3 AND THUS, GROUND NO.4 IS EFFECTIVELY NOT ADJUDICA TED. 2. THE AR HAS SUBMITTED THAT GROUND NO. 4 WAS INADV ERTENTLY LEFT OUT TO BE ADJUDICATED FOR THE REASON THAT FIGURES S EEM TO BE THE SAME, BUT IN SUBSTANCE GROUND NO. 4 PERTAINING TO GOODWIL L. 3. THE DR ACCEPTS THAT THE ISSUE NEEDS TO BE ADJUDI CATED. 5. ON HEARING OF BOTH THE PARTIES, WE ARE IN AGREEM ENT THAT INADVERTENT MISTAKE CREPT IN BECAUSE OF SIMILAR FIG URES, BUT GROUND NO. 4 ENTIRELY PERTAINS TO DIFFERENT ISSUE I.E THE CLAIM OF DEPRECIATION ON GOODWILL. AS THE IMPUGNED GROUND NO. 4 IS INADV ERTENTLY LEFT OUT, THEREFORE, WE RECALL THE ORDER AS PASSED IN ITA NO. 2919/MUM/2013 CONCERNING ASSESSMENT YEAR 2008-09 FOR THE ADJUDICA TION FOR GROUND NO. 4 ONLY. 6. THE REGISTRY IS DIRECTED TO FIX THE CASE FOR DIS POSAL OF THE APPEAL FOR THIS LIMITED ISSUE IN THE NORMAL COURSE. 7. IN THE RESULT, MISCELLANEOUS APPLICATION FILED B Y THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01/08/2014 . ./0 %& *+,- ! 1 23 4/'%5 01/08/2014 %+ %& 6$ SD/- SD/- ( VIVEK VARMA ) (P.M. JAGTA P ) 17% / / JUDICIAL MEMBER / / ACCOUNTANT MEMBER 2 ! 8$ MUMBAI ; 4/'% DATED 01/08/2014 F{X~{T? P.S./ 7'.. ', - .'/% 0%* / COPY OF THE ORDER FORWARDED TO : 1. 9:; / THE APPELLANT 3 MA NO136/MUM/2014 2. <=; / THE RESPONDENT. 3. .%( . ! >' (9:) / THE CIT (A) - , MUMBAI 4. .%( . ! >' /CIT MUMBAI 5. @# A6 <7'7'BC , .%( 9:) 9BC%(- , 2 ! 8$ / DR, ITAT, MUMBAI BENCH 6. 6EF G$ / GUARD FILE. ',) ! / BY ORDER, =@:' <7' //TRUE COPY// 1/!2 ( DY./ASSTT. REGISTRAR) , 2 ! 8$ / ITAT, MUMBAI,