Continuum Wind Energy (India) Pvt. Ltd., CHENNAI V. DCIT, CHENNAI

MA 323/CHNY/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6192 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 07-12-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: B RAMAKRISHNAN
• Keywords: Depreciation; Business expenditure; Revenue expenditure
• Section: 37

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI ... , . !, # !$ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER %% / M.P. NO.323/MDS/2017 (IN I.T.A. NO.3344/MDS/2016) & '& / ASSESSMENT YEAR : 2013-14 M/S CONTINUUM WIND ENERGY (INDIA) PVT. LTD. (FORMERLY KNOWN AS M/S SURAJBARI WINDFARMS DEVELOPMENT PVT. LTD.), SOUTH WING, 4 TH FLOOR, KAKANI TOWERS, NO.15, KHADER NAWAZ KHAN ROAD, NUNGAMBAKKAM, CHENNAI - 600 006. PAN : AAKCS 8353 F V. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(2), CHENNAI - 600 034. ()*& /PETITIONER) ()+*,/ RESPONDENT) )*& . / /PETITIONER BY : SH. B. RAMAKRISHNAN, CA )+*, . / / RESPONDENT BY : MS. S. VIJAYAPRABHA, JCIT 0 . 1# / DATE OF HEARING : 02.02.2018 23' . 1# / DATE OF PRONOUNCEMENT : 08.02.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE ASSESSEE HAS FILED THE PRESENT MISCELLANEOUS PETITION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER O F THIS TRIBUNAL DATED 16.06.2017. 2 M.P. NO.323/MDS/17 2. SH. B. RAMAKRISHNAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSEE AVAILED LOAN IN INDIAN CURRENCY FROM STATE BANK OF INDIA FOR PAYING THE CR EDITORS. SUBSEQUENTLY, THE LOAN WAS CONVERTED INTO FOREIGN E XCHANGE LOAN AND THE ASSESSEE HAS PAID PREMIUM OF 1.9 LAKHS. ACCORDING TO THE LD. REPRESENTATIVE, SINCE THE ASSESSEE HAS AMORTIZE D THE PREMIUM PAID OVER A PERIOD OF THREE YEARS, THE SAME HAS TO BE ALLOWED AS REVENUE EXPENDITURE. ACCORDING TO THE LD. REPRESEN TATIVE, THE ASSESSEE ENTERED INTO A CONTRACT TO HEDGE THE FOREX EXPOSURE WITH STATE BANK OF INDIA AT A RATE OF 46.62 PER USD. ACCORDING TO THE LD. REPRESENTATIVE, THE PROJECT WAS ALREADY SET UP DURING THE FINANCIAL YEAR 2007-08 AND THE ASSESSEE HAS SWAPPED THE EXISTING LOAN INTO FOREIGN CURRENCY LOAN. THE FACILITY OF F OREIGN CURRENCY LOAN IS FOR ONLY ONE YEAR AFTER THAT IT WILL BE CONVERTE D BACK TO INDIAN RUPEE LOAN. ACCORDING TO THE LD. REPRESENTATIVE, S INCE THE PREMIUM PAID WAS TO HEDGE THE PRINCIPAL AMOUNT, IT HAS TO B E ALLOWED AS BUSINESS EXPENDITURE UNDER SECTION 37 OF THE INCOME -TAX ACT, 1961 (IN SHORT 'THE ACT'). 3. WE HEARD MS. S. VIJAYAPRABHA, THE LD. DEPARTMENT AL REPRESENTATIVE ALSO. IN THE COURSE OF HEARING OF A PPEAL, THE ASSESSEE ALTERNATIVELY CLAIMED DEPRECIATION BY PLAC ING RELIANCE ON 3 M.P. NO.323/MDS/17 THE DECISION OF BANGALORE BENCH OF THIS TRIBUNAL IN JSW STEEL LTD. V. ACIT (2010) 133 TTJ 742. ACCORDINGLY, THIS TRIB UNAL ACCEPTED THE ALTERNATIVE CLAIM MADE BY THE ASSESSEE AND DIRE CTED THE ASSESSING OFFICER TO GRANT DEPRECIATION. THEREFORE , NOW AT THIS STAGE, THE ASSESSEE CANNOT CLAIM THAT THE EXPENDITU RE WAS IN REVENUE FIELD. THIS TRIBUNAL CAN RECTIFY AN ERROR WHICH IS APPARENT ON THE FACE OF THE RECORD UNDER SECTION 254(2) OF T HE ACT. THERE IS NO ENABLING PROVISION IN THE INCOME-TAX ACT TO REVI EW THE ORDER ONCE PASSED BY THE TRIBUNAL. IN THIS CASE, SINCE ALTERN ATIVE CLAIM OF THE ASSESSEE WAS ACCEPTED, THIS TRIBUNAL IS OF THE CONS IDERED OPINION THAT THERE IS NO ERROR MUCH LESS PRIMA FACIE ERROR IN THE ORDER OF THIS TRIBUNAL DATED 16.06.2017. ACCORDINGLY, THE M.P. I S DISMISSED. 4. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED COURT ON 8 TH FEBRUARY, 2018 AT CHENNAI. SD/- SD/- (. ! ) ( ... ) (S. JAYARAMAN) (N.R.S. GANESAN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 8 TH FEBRUARY, 2018. KRI. 4 M.P. NO.323/MDS/17 . )16% 7%'1 /COPY TO: 1. )*& / PETITIONER 2. )+*, /RESPONDENT 3. 0 81 () /CIT(A) 4. 0 81 /CIT 5. %9 )1 /DR 6. :& ; /GF.