L & T FINANCE LTD, V. DCIT CIR 2(2),

MA 423/MUM/2013

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2143 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 1998-1999
• Appeal Filed On: 22-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HEENA DOSHI
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUM BAI . . , , BEFORE SHRI I. P. BANSAL, JM AND SHRI SANJAY ARORA , AM ./ M.A. NOS. 423 & 424/MUM/2013 (ARISING OUT OF ITA NOS. 4345 & 4346/MUM/2010) ( / ASSESSMENT YEARS: 1998-99 & 1999-2000) L & T FINANCE LIMITED TAXATION DEPARTMENT, L & T HOUSE, N. M. MARG, BALLARD ESTATE, MUMBAI-400 001 / VS. DY. CIT, CIRCLE 2(2), AAYAKAR BHAVAN, M. K. ROAD, MUMBAI-400 020 ' ./# ./PAN/GIR NO. AAACL 8668 G ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) '$ ' ( / APPELLANT BY : MS. HEENA DOSHI %&'$ ' ( / RESPONDENT BY : SHRI DURGA DUTT ) * ' +, / DATE OF HEARING : 11.07.2014 -./ ' +, / DATE OF PRONOUNCEMENT : 11.07.2014 0 / O R D E R PER SANJAY ARORA, A. M.: THIS IS A SET OF MISCELLANEOUS APPLICATIONS BY THE ASSESSEE, ARISING OUT OF THE ORDER BY THE TRIBUNAL DATED 12.11.2012, DISMISSING THE ASSESSEES APPEALS FOR THE ASSESSMENT YEARS (A.YS.) 1998-99 AND 1999-2000. 2. THE ASSESSEE HAS NOW MOVED U/S. 254(2) OF THE IN COME TAX ACT, 1961 (THE ACT HEREINAFTER), CLAIMING THAT IN VIEW OF THE DECISION BY THE APEX COURT IN THE CASE OF ICDS LTD. VS. CIT (IN CA NOS. 3286 TO 3290 OF 2008 DATED 14.01.2013), IN THE CASE OF VEHICLES GIVEN ON FINANCE LEASE, THE LESSOR IS ELIGIBLE TO CLAIM THE DEPRECATION UNDER THE ACT. ACCORDINGLY, IT IS CLAIMED THAT THE IMPUGNED ORDER BE RECALLED IN-AS-MUCH AS IT IS 2 MA NOS. 423 & 424/M/13 (A.YS.1998-99 & 1999-2000) L & T FINANCE LIMITED VS. DY. CIT INCONSISTENT WITH THE SAID DECISION BY THE COURT, A ND THE ASSESSEES APPEALS DECIDED AFRESH IN LIGHT THEREOF. IN FACT, ON SIMILAR PETITIONS BEI NG MOVED BY THE ASSESSEE FOR THE PRECEDING YEARS, I.E., A.YS. 1995-96 TO 1997-98 (IN MA NOS. 420 TO 422/MUM/2013), THE TRIBUNAL VIDE ITS ORDER DATED 30.04.2014 (COPY ENCL OSED) RECALLED THE IMPUGNED ORDER, COMMON FOR ALL THE YEARS, DATED 09.05.2012, DIRECTI NG THE ASSESSING OFFICER (A.O.) TO ALLOW DEPRECIATION ON THE ASSETS GIVING ON SALE AND LEASE BACK BASIS. THE A.O. WAS FURTHER DIRECTED TO WITHDRAW THE CORRESPONDING BENEFIT GIVE N TO THE ASSESSEE BY EXCLUDING THE VALUE OF THE CAPITAL COMPONENT OF THE LEASE RENT FR OM THE INCOME OF THE ASSESSEE. 3. WE HAVE HEARD THE PARTIES, AND PERUSED THE MATER IAL ON RECORD. THE LD. DEPARTMENTAL REPRESENTATIVE (DR) COULD NOT, ON BEIN G REQUIRED TO EXPRESS HIS OBJECTION, IF ANY, TO THE SAID PRAYER MADE BY THE ASSESSEE PER ITS INSTANT APPLICATIONS, STATE ANY. IN- AS-MUCH AS THE IMPUGNED DECISION BY THE TRIBUNAL IS INCONSISTENT WITH THE DECISION BY THE APEX COURT (SINCE REPORTED AT [2013] 350 ITR 527 (S C)), IT BEARS THE MISTAKE APPARENT FROM THE RECORD. THE SAME IS, THEREFORE, LIABLE TO RECALLED, AND WE DIRECT ACCORDINGLY. THE ASSESSMENTS IN THE INSTANT CASE ARE ACCORDINGLY DIR ECTED TO BE COMPLETED BY THE A.O., I.E., QUA THE ISSUE OF SALE AND LEASE BACK OF THE ASSETS UNDE R REFERENCE, IN LIGHT OF AND FOLLOWING THE DECISION BY THE APEX COURT IN THE CAS E OF ICDS LTD. (SUPRA), WHICH REPRESENTS THE LAW OF THE LAND. FURTHER, THE A.O. S HALL ALSO, MAKE THE CONSEQUENTIAL ADJUSTMENTS, SO THAT, WHILE ALLOWING DUE RELIEF, DO UBLE BENEFIT IS NOT EXTENDED TO THE ASSESSEE, EVEN AS CAUTIONED BY THE TRIBUNAL IN ITS OWN CASE FOR THE EARLIER YEARS, CITED SUPRA. WE DECIDE ACCORDINGLY. 4. IN THE RESULT, THE ASSESSEES MISCELLANEOUS APPL ICATIONS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON JULY 11, 2014 SD/- SD/- (I. P. BANSAL) (SANJAY ARORA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER ) * MUMBAI; 1 DATED : 11.07.2014 3 MA NOS. 423 & 424/M/13 (A.YS.1998-99 & 1999-2000) L & T FINANCE LIMITED VS. DY. CIT . ../ ROSHANI , SR. PS ! ' #$%& ' &$ / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %&'$ / THE RESPONDENT 3. ) 2+ ( ) / THE CIT(A) 4. ) 2+ / CIT - CONCERNED 5. 56 %+ 7 , , 7/ , ) * / DR, ITAT, MUMBAI 6. 689 :* / GUARD FILE ! ( / BY ORDER, )/(* + (DY./ASSTT. REGISTRAR) , ) * / ITAT, MUMBAI