Canara Bank, Bangalore V. Additional/Joint Commissioner of Income tax, Bangalore

MA 42/BANG/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4411 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 12-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNDAR RAJAN
• Assessee Lawyers: G SARANGAN SENIOR
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER MISC.PETN.NO.42/BANG/2016 (IN ITA NO.684/BANG/2012) (ASSESSMENT YEAR: 2008 - 09) A ND MISC.PETN.NO.43/BANG/ 2016 (IN ITA NO.813/BANG/2011) (ASSESSMENT YEAR: 2007 - 08) CANARA BANK, BSCA SECTION , H EAD OFFICE, JC ROAD, BANGALORE - 560002. PA NO.AABTP5453B VS. PETITIONER ADDL./JOINT COMMISSIONER OF INCOME - TAX, LTU, BANGALORE . RESPONDENT PETITIONER BY : SHRI G.SARANGAN, SENIOR ADVOCATE AND SHRI S.ANANTHAN, CA. RESPONDENT BY : SHRI SUNDAR RAJAN DATE OF HEARING : 17 /0 6 /2016 DATE OF PRONOUNCEMENT : 13 /0 7 /2016 O R D E R PER INTURI RAMA RAO, AM : THESE MISCELLANEOUS APPLICATIO NS HAVE BEEN FILED BY THE ASSESSEE - BANK SEEKING MODIFICATION OF THE DIRECTIONS OF THE HON BLE TRIBUNAL IN PARAS.34 TO 37 OF THE ORDER AS UNDER: MP NOS.42 & 43/BANG/2016 PAGE 2 OF 3 HOWEVER, IN THE APPEAL ITA NO.813 OF 2011, THE HON BLE BENCH HELD IN PARA 34 PAGE 37 THAT SINCE DEPRECIATION CLAIM IS ONLY CONSEQUENTIAL IN NATURE, IN THE INTEREST OF JUSTICE WOULD BE IF THE ISSUE IS ALSO RESTORED TO THE FILE OF THE AO TO FOLLOW THE DECISION TAKEN FOR EARLIER ASSESSMENT YEARS. THUS THIS GROUND OF APPEAL IS PARTLY ALLOWED . THESE REASONS WERE CO NSIDERED IN THE PRESENT APPEAL IN ITA NO.684 OF 2012 AT PARA NO.43 OF PAGE 41 AND THE ISSUE WAS RESTORED TO THE FILE OF THE ASSESSING OFFICER. THIS IS WHERE THE APPELLANT FEELS THAT THE HON BLE TRIBUNAL ERRED IN RESTORING TO THE FILE OF THE ASSESSING OFFI CER THE SAME ISSUE. 2. IT IS THE CONTENTION OF THE ASSESSEE - BANK THAT WHILE GIVING SUCH DIRECTION THIS TRIBUNAL HAS NOT CONSIDERED THE FINDING GIVEN BY THIS TRIBUNAL IN ITA NOS.765 TO 768/BANG/2011 WHEREIN THIS TRIBUNAL HAD DIRECTED THE AO TO ALLOW DEPRECIATION IN RESPECT OF ASSETS LEASED TO M/S.RAJENDRA STEELS AND M/S.KEDIA GROUP OF COMPANIES. IN LIGHT OF THIS ORDER OF THE TRIBUNAL DEPRECIATION CAME TO BE ALLOWED IN THE PAST AND THE SAME SHOULD BE ALLOWED TO BE CONTINUED. 3. WE HEARD RIVAL SU BMISSIONS AND PERUSED MATERIAL ON RECORD. THERE IS NO DISPUTE ABOUT THE SUBMISSIONS MADE BY THE ASSESSEE - BANK THAT WHILE PASSING THE IMPUGNED DIRECTIONS, THE TRIBUNAL HAD IGNORED THE ORDER PASSED BY THE TRIBUNAL IN ITA NOS.765, 766 & 767/BANG/2011. IN THE LIGHT OF THIS ORDER, THERE WAS NO NEED TO SET ASIDE THE ISSUE RELATING TO DEPRECIATION AND THE ASSETS LEASED TO BACK M/S.RAJENDRA STEELS AND M/S.KEDIA GROUP OF COMPANIES TO THE FILE OF THE AO TO. ACCORDINGLY, THE SAID DIRECTION IS MODIFIED AS UNDER: MP NOS.42 & 43/BANG/2016 PAGE 3 OF 3 SI NCE THE TRIBUNAL, IN ITA NOS.765, 766 & 767/BANG/2011 HAD DIRECTED THE AO TO ALLOW DEPRECIATION IN RESPECT OF LEASED ASSETS TO M/S.RAJENDRA STEELS AND M/S.KEDIA GROUP OF COMPANIES, ACCORDINGLY, WE ALSO DIRECT THE AO TO ALLOW DEPRECIATION ON ASSETS LEASED TO M/S.RAJENDRA STEELS AND M/S.KEDIA GROUP OF COMPANIES IN ACCORDANCE WITH ORDER OF THE TRIBUNAL IN THE ABOVE APPEALS. THIS GROUND OF APPEAL IS ALLOWED. 4. IN THE RESULT, THE MISC. PETNS. ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN C OURT ON 13 TH JULY, 2016 S D/ - S D/ - ( VIJAY PAL RAO ) (I NTURI RAMA RAO ) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BANGALORE D A T E D : 13 / 0 7 /2016 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE