Tudor India Ltd., Gandhinagar V. The DCIT.,GNR Range, Gandhinagar

MA 186/AHD/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3385 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 18-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SNAJY R SHAH
• Keywords: Depreciation; Capital expenditure

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SMT. MADHUMITA ROY, JUDICIAL MEMBER MISCELLANEOUS APPLICATION NO.186/AHD/2018 (IN I.T.A. NO. 612/AHD/2014) ( ASSESSMENT YEAR: 2008-09) TUDOR INDIA LTD. 1 ST FLOOR, SUMAN TOWER SEC- 11, GANDHINAGAR / VS. DCIT GNR CIRCLE, GANDHINAGAR, AHMEDABAD- 382011 / / PAN/GIR NO. : AAA CT1 681 R ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SNAJY R. SHAH, CA / RESPONDENTBY: SHRI UMASHANKAR PRASAD, SR. DR DATE OFHEARING 15/02/2019 !'# / DATE OF PRONOUNCEMENT 22/02/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED MISCELLANEOUS APPLICATION HAS BEEN FI LED BY THE ASSESSEE ARISING OUT OF THE DECISION OF THE TRI BUNAL IN ITA NO. 612/AHD/2014 CONCERNING ASSESSMENT YEAR 2008-09. 2. AT THE TIME OF HEARING, THE LD. AR FOR THE ASSES SEE SUBMITTED THAT THE ISSUE RELATES TO HOLDING THE MAN AGEMENT FEES M.A. NO. 186/AHD/2018 I.T.A NO. 612/AHD/2014 TUDOR INDIA LTD. VS. DCIT A.Y. 2008-09 - 2 - PUT IN THE NATURE OF BOTH CAPITAL AND REVENUE NATUR E IN PROPORTION TO 60:40. THE LD. AR POINTED OUT THAT THE TRIBUNAL HELD THAT 40 PER CENT OF THE MANAGEMENT FEES (RS. 7.12 LAKHS) IS REVENUE IN NATURE AND THEREFORE SHOULD BE ALLOWED AS DEDUCTION IN THE CURRENT YEAR. THE TRIBUNAL HOWEVER HELD THE BALANCE 60 PER CENT OF THE MANAGEMENT FEES (RS. 10.67 LAKHS) TO BE A CAPITAL N ATURE SINCE IT PERTAINS TO INCREASE INSTALLED CAPACITY. THE LD. A R THEREAFTER SUBMITTED THAT WHILE HOLDING SO, THE TRIBUNAL HAS O MITTED TO GIVE SUITABLE DIRECTION TO REVENUE AUTHORITIES TO ENTERT AIN CLAIM OF DEPRECIATION ALLOWANCE ON SUCH CAPITAL EXPENDITURE SPECIFICALLY TAKEN BY THE ASSESSEE AS PER GROUND NO.7.1 OF ITS G ROUNDS OF APPEALS. 3. ON PERUSAL OF THE ORDER OF THE ITAT, WE FIND THA T THE SPECIFIC GROUND TAKEN TOWARDS ELIGIBILITY OF THE DE PRECIATION ALLOWANCE OF CAPITAL EXPENDITURE HAS REMAINED TO BE DISPOSED OF BY THE TRIBUNAL RESULTING IN APPARENT MISTAKE TO TH E PREJUDICE OF THE ASSESSEE. SUCH MISTAKE IS THEREFORE RECTIFIABL E UNDER SECTION 254(2) OF THE ACT. 4. THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS ACCORDINGLY ALLOWED. THE ORDER OF THE TRIBUNAL IN ITA NO. M.A. NO. 186/AHD/2018 I.T.A NO. 612/AHD/2014 TUDOR INDIA LTD. VS. DCIT A.Y. 2008-09 - 3 - 612/AHD/2014 IS ACCORDINGLY RECALLED FOR LIMITED PU RPOSES OF ADJUDICATION OF GROUND NO. 7.1 OF ITS APPEAL. 5. THE REGISTRY IS ACCORDINGLY DIRECTED TO LIST THE APPEAL IN ITA NO. 612/AHD/2014 FILED BY THE ASSESSEE FOR HEARING IN REGULAR COURSE FOR ADJUDICATION OF GROUND OMITTED TO BE CON SIDERED IN THE FIRST INSTANCE. SD/- SD/- (MADHUMITA ROY) (PRADIP KUMAR KE DIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 22/02/2019 TANMAY TRUE COPY !'#' / COPY OF ORDER FORWARDED TO:- & / REVENUE 2 / ASSESSEE ( ) *+ , / CONCERNED CIT - ,- / CIT (A) / 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7 289 : / GUARD FILE. BY ORDER / 4 ;/ 5 *+#456) < THIS ORDER PRONOUNCED IN OPEN COURT ON 22 /02/2 019