ACIT, CIR-28, KOLKATA, Kolkata v. Raghvendra Pratap Singh, Kolkata

ITA 1127/KOL/2015 | 2012-2013
Pronouncement Date: 15-11-2017 | Result: Allowed

Appeal Details

RSA Number 112723514 RSA 2015
Assessee PAN AMAPS3456L
Bench Kolkata
Appeal Number ITA 1127/KOL/2015
Duration Of Justice 2 year(s) 2 month(s) 19 day(s)
Appellant ACIT, CIR-28, KOLKATA, Kolkata
Respondent Raghvendra Pratap Singh, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 15-11-2017
Appeal Filed By Department
Tags No record found
Order Result Allowed
Bench Allotted B
Tribunal Order Date 15-11-2017
Last Hearing Date 25-09-2017
First Hearing Date 25-09-2017
Assessment Year 2012-2013
Appeal Filed On 26-08-2015
Judgment Text
1 ITA NO.1127/KOL/2015 RAGHVENDRA PRATAP SINGH AY 2012-13 B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA ( ) BEFORE . . /AND . ) [BEFORE SHRI A. T. VARKEY JM & SHRI M. BALAGANESH AM] I.T.A. NO. 1127/KOL/2015 ASSESSMENT YEAR: 2012-13 ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE-28 KOLKATA VS. RAGHVENDRA PRATAP SINGH (AMAPS3456L) APPELLANT RESPONDENT DATE OF HEARING 25.09.2017 DATE OF PRONOUNCEMENT 15.11.2017 FOR THE APPELLANT SHRI DAVID Z. CHOWNGTHU ADDL. CI T DR FOR THE RESPONDENT SHRI SUBASH AGARWAL ADVOCATE ORDER PER SHRI A.T.VARKEY JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-8 KOLKATA DATED 12.06.2015 FOR AY 2012-13. 2. THE MAIN GRIEVANCE OF THE REVENUE IS AGAINST THE ACTION OF THE LD. CIT(A) IN ANNULLING THE ORDER OF THE AO PASSED U/S. 154 OF TH E INCOME-TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S IN THE BUSINESS OF TRANSPORTATION AND HAD DECLARED A TOTAL INCOME OF RS.38 92 667/- FOR T HE YEAR UNDER CONSIDERATION. LATER THE CASE WAS TAKEN UP FOR SCRUTINY AND VIDE ORDER DATED 08.03.2014 THE ASSESSMENT ORDER U/S. 143(3) OF THE ACT WAS PASSED ASSESSING TOTAL INCOME AT RS.45 80 600/-. AGGRIEVED BY THE SAID DECISION OF THE AO THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A) WHO ALLOWED THE APPEAL FOR STATISTICAL PURPOSE BY ORDER DATED 12.06.2015. WHILE THE APPEAL BEFORE THE LD. CIT(A) WAS PENDING THE AO NOTICED T HAT THE ASSESSEE HAD CLAIMED DEPRECIATION ON TRUCKS TRAILORS AND REACH STACKERS @ 40%. ACCORDING TO AO AS PER ENTRY NO. III(3)(II) OF PART A OF APPENDIX OF INCOME-TAX RULES 1962 (HEREINAFTER REFERRED TO AS THE RULES) THE RATE OF DEPRECIATION IS ALLOWABLE @ 3 0% AND NOT 40% AS CLAIMED BY THE ASSESSEE. THEREFORE THE AO ISSUED NOTICE U/S. 154 OF THE ACT AND PROPOSED TO RECTIFY THE 2 ITA NO.1127/KOL/2015 RAGHVENDRA PRATAP SINGH AY 2012-13 RATE OF DEPRECIATION @ 30% AS AGAINST 40% CLAIMED B Y THE ASSESSEE IN HIS RETURN OF INCOME. THE ASSESSEE OBJECTED BY LETTER DATED 06.02.2015 TO THE PROPOSED RECTIFICATION. HOWEVER THE AO DID NOT ACCEPT THE OBJECTION OF THE ASSESSEE AND PASSED AN ORDER ALLOWING ONLY DEPRECIATION @ 30% AND RECTIFIED THE ASSESSMENT ORD ER PASSED ON 08.03.2014 BY ORDER DATED 24.02.2015. AGGRIEVED THE ASSESSEE PREFERRED AN A PPEAL BEFORE THE LD. CIT(A) WHO WAS PLEASED TO ANNULL THE 154 PROCEEDINGS RELYING ON TH E HONBLE GUJARAT HIGH COURT DECISION IN THE CASE OF M/S. NIKO RESOURCES LTD. VS. ADIT (2014 ) 51 TAXMANN.COM 568 (GUJ). AGGRIEVED THE REVENUE IS BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PER USED THE MATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASSESSEES CASE FOR THE Y EAR UNDER CONSIDERATION WAS SELECTED FOR SCRUTINY AND ASSESSMENT ORDER WAS PASSED U/S. 143(3 ) OF THE ACT ON 08.03.2014. LATER THE AO NOTICED THAT THE ASSESSEE HAS CLAIMED DEPRECIATI ON ON TRUCKS TRAILORS AND REACH STACKERS @ 40% WHEREAS AS PER THE ENTRY NO. III(3)(II) OF PA RT A OF APPENDIX OF THE RULES THE RATE OF DEPRECIATION ALLOWABLE IN ASSESSEES CASE IS 30%. A SHOW CAUSE NOTICE WAS ISSUED BY THE AO TO INVOKE 154 PROCEEDINGS TO RECTIFY THE ERROR W HICH WAS OBJECTED TO BY THE ASSESSEE BY RELYING ON THE DECISION OF COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF FIS LOGISTICS PVT. LTD. VS. ACIT IN ITA NO. 343/KOL/2011 DATED 11.07.2 013 FOR AY 20056 AND CIRCULAR NO. 609 OF CBDT DATED 29.07.1991. WE NOTE THAT THE AO HAS SPECIFICALLY MADE A FINDING THAT THE CIRCULAR AND THE ORDER OF THE TRIBUNAL DO NOT R ELATE TO THE RELEVANT YEAR UNDER CONSIDERATION AND THE RATE OF DEPRECIATION HAS UNDE RGONE CHANGE W.E.F. AY 2006-07 ONWARDS AND SINCE THE ASSESSMENT YEAR UNDER CONSIDE RATION IS AY 2012-13 THE AO NOTICED THAT THE ASSESSEE CLAIM OF DEPRECIATION @ 40% IS IN CORRECT. WE NOTE THAT THE ASSESSEES CLAIM OF DEPRECIATION ON THE TRUCKS TRAILORS AND R EACH STACKERS WHICH UP TO 2005-06 COULD HAVE CLAIMED 40% AND FROM AY 2006-07 ONWARDS IT IS 30%. THE LD. AR COULD NOT BRING TO OUR NOTICE ANY ERROR IN THE DECISION OF THE AO WHE REAS ACCORDING TO THE LD. DR A PERUSAL OF THE ORDER OF THE HONBLE GUJARAT HIGH COURT IN T HE CASE OF NIKO RESOURCES LTD. (SUPRA) (HEAD NOTE) ITSELF CLEARLY GIVES THAT IT WAS A CASE OF AN ASSESSEE WHOSE ASSESSMENT WAS COMPLETED U/S. 143(3) AND THE AO IN THAT CASE DESIR ED TO REOPEN AFTER FOUR YEARS SO THE CASE AND DECISION THEREOF HAVE NO BEARING ON THE CASE IN HAND. WE FIND CONSIDERABLE FORCE IN THE SAID CONTENTION OF THE LD. DR AND WE FIND THAT THE ORDER OF HONBLE GUJARAT HIGH COURT HAS GOT NO RELEVANCE IN THE PRESENT CASE. WE NOTE THAT HONBLE P&H HIGH COURT IN CIT VS. 3 ITA NO.1127/KOL/2015 RAGHVENDRA PRATAP SINGH AY 2012-13 VARINDER CONSTRUCTION CO. (2012) 19 TAXMANN.COM 244 (P&H) AND THE HONBLE MADRAS HIGH COURT IN CIT VS. ALANKAR BOREWELLS (2003) 133 TAXMAN 91 (MAD) HAS UPHELD THE ACTION OF THE AO IN SIMILAR CASES WHEREIN 154 RECTI FICATION WAS DONE WHEN THE AO NOTED THAT THE DEPRECIATION RATE CLAIMED WAS NOT IN CONSO NANCE WITH THE RULES. THEREFORE WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE A O AND WE ARE INCLINED TO REVERSE THE IMPUGNED ORDER OF THE LD. CIT(A) AND UPHOLD THE ACT ION OF THE AO. APPEAL OF REVENUE IS ALLOWED. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLO WED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 15TH NOVEMBER 2017 SD/- SD/- (M. BALAGANESH) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 15TH NOVEMBER 2017 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT ACIT CIRCLE-28 KOLKATA 2 RESPONDENT SHRI RAGHVENDRA PRATAP SINGH 98/H/1 2/1 GARDEN REACH ROAD HASTINGS KOLKATA-700 023. 3. THE CIT(A) KOLKATA 4. 5. CIT KOLKATA DR KOLKATA BENCHES KOLKATA / TRUE COPY BY ORDER SR. PVT. SECRETARY