Appeal details
Counselvise Citation
Assessee PAN
Bench
Appeal Number
Duration Of Justice
9 month(s) 23 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
28-11-2024
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Next Hearing Date
16-10-2024
Assessment Year
2016-2017
Appeal Filed On
05-02-2024
Judgement Text
"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़ \nIN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH \n \nHEARING THROUGH: PHYSICAL MODE \n \nŵी िवŢम िसंह यादव, लेखा सद˟ एवं ŵी परेश म. जोशी, Ɋाियक सद˟ \nBEFORE: SHRI. VIKRAM SINGH YADAV, AM & SHRI. PARESH M. JOSHI, JM \n \nआयकर अपील सं./ ITA NO. 102/Chd/2024 \nिनधाŊरण वषŊ / Assessment Year : 2016-17 \n \nTarsem Bharti \nBharti Filling Station \nShoghi, Shimla \nबनाम \n \nThe ITO \nWard -2, \nShimla \n᭭थायी लेखा सं./PAN NO: ABSPB1981C \nअपीलाथŎ/Appellant \n \nŮȑथŎ/Respondent \n \nिनधाŊįरती की ओर से/Assessee by : \nShri Tarsem Bharti \nराजˢ की ओर से/ Revenue by : \nSmt. Amanpreet Kaur, Sr. DR \n \nसुनवाई की तारीख/Date of Hearing : \n16/10/2024 \nउदघोषणा की तारीख/Date of Pronouncement : 28/11/2024 \n \nआदेश/Order \n \nPER VIKRAM SINGH YADAV, A.M. : \n \nThis is an appeal filed by the Assessee against the order of the Ld. \nCIT(A)/NFAC, Delhi dt. 16/02/2023 pertaining to Assessment Year 2016-17 \nwherein the sole ground of appeal relates to the sustenance of disallowance of \ndepreciation of Rs. 13,77,523/- claimed by the assessee while filing his return of \nincome. \n2. \nBriefly the facts of the case are that the assessee filed his return of income \ndeclaring total income of Rs. 18,83,780/- on 17/10/2016 which was processed \nunder section 143(1) and thereafter, selected for scrutiny through CASS to \nexamine the claim of depreciation as so made in the return of income. Notice \nunder section 143(2) and 142(1) followed by show cause dt. 03/12/2018 was \nissued to the assessee and thereafter, the assessment was completed under \nsection 144 dt. 20/12/2018 by making an addition of Rs. 13,77,523/- . As per the \nAO, the assessee has claimed depreciation of Rs. 13,77,523/- in his return of \nincome and the assessee was asked to explain as to why the depreciation so \nclaimed should not be disallowed and treated as his total income and he has \n\n2 \n \nfailed to substantiate the same with documentary evidence and in absence of \nany objection / explanation submitted by the assessee, it can be inferred that \nthe assessee has nothing to say in the matter and therefore depreciation \nclaimed was disallowed and as against the returned income, the assessed \nincome was determined at Rs. 32,61,303/-, which, on appeal by the assessee, \nhas been confirmed by the Ld. CIT(A). \n3. \nAgainst the said findings and direction of the Ld. CIT(A) and the addition \nso made and sustained by the Ld. CIT(A), the assessee is in appeal before us. \n4. \nDuring the course of hearing, the assessee himself appeared and \nsubmitted that the assessment order has been passed under section 144 due to \nnon response by the tax consultant so appointed by him. It was submitted that \nsince June 2018, he was ill and has been diagnosed with Cancer in August 2018 \nand thereafter, he has been admitted in PGI Chandigarh and IGMC Shimla \nmany times during this period and is still under treatment. It was submitted that \nthe mistake was on the part of the consultant so appointed which has resulted \nin non-compliance to the notices issued by the AO. \n4.1 \nIt was further submitted that he was not even served with a copy of the \nassessment order and demand notice and the AO has directly initiated \nrecovery proceeding by attaching his bank account without giving him any \nopportunity. \n4.2 \nIt was further submitted that he thereafter carried the matter in appeal \nbefore the Ld. CIT(A) and there also, as the matter could not be represented \ndue to his ill health, the Ld. CIT(A) gone ahead and passed an ex-parte order \nwithout giving any findings on the merits of the case. \n4.3 \nOn the merits of the depreciation so claimed in the return of income, it \nwas submitted that the depreciation has been claimed on the assets forming \npart of the opening WDV as well as certain additions made during the Financial \n\n3 \n \nYear relevant to the impugned Assessment Year. It was submitted that the \ndetails of the opening WDV as well as the addition under the respective block of \nassets have been duly disclosed in the return of income so filed by the assessee. \nIt was submitted that as far as the depreciation on the opening WDV is \nconcerned, there is clearly non application of mind on the part of the AO as the \nsame could not have been disallowed as the details regarding the opening \nWDV are very much disclosed in the return of income itself and the same has \nbeen carry forward from the earlier assessment year wherein no adverse finding \nhas been recorded by the AO. \n4.4 \nIn respect of the additions to the block of assets during the financial Year, \nit was submitted that the assessee purchased plant and machinery worth Rs \n4,50,585/- and computers worth Rs 30,190/- during the year and necessary \ninvoices/purchase bills have been placed on record. It was submitted that the \nsaid evidences regarding purchase of the assets during the financial year could \nnot be submitted before the lower authorities due to ill health of the assessee as \nevident from the medical records which have been placed on record and in \nthe interest of substantial justice, these additional evidence be admitted and \nmatter be decided accordingly. \n5. \nThe Ld. DR is heard who has submitted that as far as the claim of \ndepreciation on opening WDV which has been carried forward from the earlier \nyears is concerned, the Revenue has no objection where the same is directed \nto be allowed by the Bench. However, as far as the additional evidences which \nare sought to be submitted by the assessee, the matter may be set aside to the \nfile of the AO to examine the same and thereafter decide the matter. \n6. \nWe have heard the rival contentions and purused the material available \non record. The relevant details in terms of opening written down value, the \nadditions to different block of assets and period of usage and claim of \ndepreciation is evident from the return of income. As far as depreciation claim \n\n4 \n \non the opening written value of various block of assets is concerned, there \ncannot be any dispute and the ld DR has also submitted that the Revenue has \nno objection, hence, depreciation claim on the opening written value of various \nblock of assets is directed to be allowed to the assessee. \n7. \nAs far as additions to block of plant and machinery is concerned, the \nadditional evidence is hereby admitted and the matter is remitted to the file of \nthe AO to examine the same and decide as per law after providing reasonable \nopportunity to the assessee. \n8. In the result, the appeal of the assessee is partly allowed for statistical \npurposes. \nOrder pronounced in the open Court on 28/11/2024 \n \n \n \n Sd/- \n \n \n \n \n \n \n \nSd/- \n परेश म. जोशी \n \n \n \n \n \n िवŢम िसंह यादव \n (PARESH M. JOSHI) \n \n \n \n \n ( VIKRAM SINGH YADAV) \n Ɋाियक सद˟ / JUDICIAL MEMBER \n \n \n \nलेखा सद˟/ ACCOUNTANT MEMBER \n \n \nAG \n \n \nआदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : \n \n1. अपीलाथᱮ/ The Appellant \n2. ᮧ᭜यथᱮ/ The Respondent \n3. आयकर आयुᲦ/ CIT \n4. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH \n5. गाडᭅ फाईल/ Guard File \n \nआदेशानुसार/ By order, \nसहायक पंजीकार/ Assistant Registrar \n \n \n \n"
Mehul