Tudor India Pvt. Limited, Gandhinagar V. The ACIT.,Gandhinagar Circle, Gandhinagar

MA 207/AHD/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6445 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 27-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L MEENA
• Keywords: Depreciation; Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER M.A. NO.207/AHD/2018 (IN ITA NO. 2585/AHD/2014) (ASSESSMENT YEAR : 2009-10) TUDOR INDIA PVT. LTD., (FORMERLY KNOWN AS TUDOR INDIA LTD.), A-704, SYNERGY, OPPOSITE COMMERCE HOUSE, NEAR VODAFONE, CORPORATE ROAD, PRAHLAD NAGAR, AHMEDABAD 380 015. VS. JT. COMMISSIONER OF INCOME TAX, GANDHINAGAR RANGE, GANDHINAGAR. [PAN NO. AAACT 1681 R] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI SANJAY R. SHAH, A.R. RESPONDENT BY : SHRI B. L. MEENA, SR. D.R. DATE OF HEARING 03.05.2019 DATE OF PRONOUNCEMENT 06.05.2019 O R D E R PER MS. MADHUMITA ROY - JM: THE CAPTIONED MISCELLANEOUS APPLICATION HAS BEEN FI LED BY THE ASSESSEE ARISING OUT OF THE DECISION OF THE TRIBUNAL IN ITA NO.2585/AHD/ 2014 CONCERNING ASSESSMENT YEAR 2009-10. 2. AT THE TIME OF HEARING, THE LD AR FOR THE ASSESS EE SUBMITTED THAT THE ISSUE RELATES TO HOLDING THE MANAGEMENT FEES PUT IN THE NATURE OF BOTH CAPITAL AND REVENUE NATURE IN PROPORTION TO 60:40. THE LD. AR POINTED OUT THAT TH E TRIBUNAL HELD THAT 40 PER CENT OF THE MANAGEMENT FEES 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 TO BE A CAPITAL NATURE SINCE IT PERTAINS TO INCREAS E INSTALLED CAPACITY. THE LD. AR - 2 - MA N O.207/AHD/2018(IN ITA NO.2585/A/14) TUDOR INDIA PVT. LTD. VS. JCIT ASST.YEAR 2009-10 THEREAFTER SUBMITTED THAT WHILE HOLDING SO, THE TRI BUNAL HAS OMITTED TO GIVE SUITABLE DIRECTION TO REVENUE AUTHORITIES TO ENTERTAIN CLAIM OF DEPRECIATION ALLOWANCE ON SUCH CAPITAL EXPENDITURE SPECIFICALLY TAKEN BY THE ASSES SEE AS PER GROUND NO.7.1 OF ITS GROUNDS OF APPEALS. 3. ON PERUSAL OF THE ORDER OF THE ITAT, WE FIND TH AT THE SPECIFIC GROUND TAKEN TOWARDS ELIGIBILITY OF THE DEPRECIATION ALLOWANCE O F CAPITAL EXPENDITURE HAS REMAINED TO BE DISPOSED OF BY THE TRIBUNAL RESULTING IN APPAREN T MISTAKE TO THE PREJUDICE OF THE ASSESSEE. SUCH MISTAKE IS THEREFORE RECTIFIABLE UND ER SECTION 254(2) OF THE ACT. 4. THE MISCELLANEOUS PETITION FILED BY THE ASSESSE E IS ACCORDINGLY ALLOWED. THE ORDER OF THE TRIBUNAL IN ITA NO. 2585/AHD/2014 IS ACCORDI NGLY RECALLED FOR LIMITED PURPOSES OF ADJUDICATION OF GROUND NO. 7.1 OF ITS APPEAL. 5. THE REGISTRY IS ACCORDINGLY DIRECTED TO LIST TH E APPEAL IN ITA NO. 2585/AHD/2014 FILED BY THE ASSESSEE FOR HEARING ON 09.05.2019 FOR ADJUDICATION OF GROUND OMITTED TO BE CONSIDERED IN THE FIRST INSTANCE. IN THE RESULT, THE MA FILED BY THE ASSESSEE IS ALL OWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 06/05/2019 SD/- SD/- ( WASEEM AHMED ) ( MS. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 06/05/2019 PRITI YADAV, SR.PS - 3 - MA N O.207/AHD/2018(IN ITA NO.2585/A/14) TUDOR INDIA PVT. LTD. VS. JCIT ASST.YEAR 2009-10 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A). 5. , ! ' , #$%% / DR, ITAT, AHMEDABAD 6. &' () / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT.REGISTRAR) !, #$ / ITAT, AHMEDABAD 1. DATE OF DICTATION 06.05.2019 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 06.05.2019 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. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 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