Finolex Cables Ltd.,, Pune v. Assistant Commissioner of Income-tax,,

ITA 1668/PUN/2015 | 2007-2008
Pronouncement Date: 28-11-2017 | Result: Allowed

Appeal Details

RSA Number 166824514 RSA 2015
Assessee PAN AAACF2637D
Bench Pune
Appeal Number ITA 1668/PUN/2015
Duration Of Justice 1 year(s) 11 month(s) 11 day(s)
Appellant Finolex Cables Ltd.,, Pune
Respondent Assistant Commissioner of Income-tax,,
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted A
Tribunal Order Date 28-11-2017
Date Of Final Hearing 23-11-2017
Next Hearing Date 23-11-2017
Assessment Year 2007-2008
Appeal Filed On 17-12-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH PUNE . BEFORE MS. SUSHMA CHOWLA JM AND SHRI D. KARUNAKARA RAO AM . / I TA NO. 1668/PUN/2015 / ASSESSMENT YEAR : 2007 - 08 FINOLEX CABLES LTD. 26/27 MUMBAI - PUNE ROAD PIM PRI PUNE - 411 018 PAN : AAACF2637D ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE - 1(2) PUNE. / RESPONDENT A PPELLANT BY : SHRI J.G. PENDSE R ESPONDENT BY : SHRI ACHAL SHARMA ADDL. CIT. / DATE OF HEARING : 23.11.2017 / DATE OF PRONOUNCEMENT : 28 .11.2017 / ORDER PER SUSHMA CHOWLA JM THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF COMMISS IONER OF INCOME TAX (APPEALS) PUNE - 11 DATED 2 7.11 .2015 RELATING TO ASSESSMENT YEAR 2007 - 08 AGAINST ORDER PASSED UNDER SECTION 143(3) R.W.S . 153A OF THE INCOME TAX ACT 1961 ( IN SHORT THE ACT). 2 ITA NO. 1668/PUN/2015 A.Y.2007 - 08 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL : BEING AGGRIEVED BY THE ORDER PASSED BY CIT(A) PUNE - 11 W.R.T ORDER PASSED BY DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE - 1(2) PUNE U/S. 143(3) R.W.S. 153A OF THE INCOME TAX ACT YOUR APPELLANT SUBMITS AMONG OTHERS THE FOLLOWING GROUNDS OF APPEAL : ON FACT S AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN : 1 . DENYING DEPRECIATION CLAIMED BY THE ASSESSEE FOR THE A.Y.2007 - 08 RS.1 23 11 709/ - ON COMMERCIAL RIGHTS ACQUIRED BY IT IN THE PREVIOUS YEAR RELEVANT TO THE A.Y. 2005 - 06 UNDER INTANGIBLE ASSETS. THE CIT(A) FURTHER ERRED IN DENYING DEPRECIATION AS AFORESAID WHEN THE DEPRECIATION CLAIMED BY THE ASSESSEE FROM A.Y.2005 - 06 WAS ALLOWED TO IT IN THE PRECEDING A.Y.2005 - 06 AND A.Y.2006 - 07 ON THE SAID INTANGIBLE ASSET IN THE ASSESSMENT CO MPLETED U/S. 143(3). 2 . THE APPELLANT PRAYS FOR RESTORATION OF INCOME RETURNED. 3 . THE APPELLANT CRAVES LEAVE TO ADD ALTER OR AMEND ANY OF THE GROUNDS OF APPEAL AT THE TIME OF APPEAL HEARING. 3. THE LD. A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT ISSUE RAISED IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE. 4. THE LD. D.R. FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF CIT(A). 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORD. BRIEFLY STATED IN THE FACTS OF THE CASE THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF MANUFACTURING AND DISTRIBUTION OF CABLES. SEARCH ACTION U/S. 132 OF THE ACT WAS CARRIED OUT AT THE PREMISES OF ASSESSEE ON 18.11.2010. THE ASSESSEE IN RESPONSE TO THE NOTICE U/S. 153A OF T HE ACT HAD FURNISHED RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 81 69 99 564/ - BY INCLUDING ADDITION MADE IN THE ORIGINAL ASSESSMENT ORDER PASSED U/S.143(3) OF THE ACT. IT MAY BE POINTED OUT HERE IN ITSELF THAT THE ASSESSEE IN ITS ORIGINAL RETURN OF INC OME HAD DECLARED TOTAL INCOME OF RS. 81 27 97 386/ - AND ASSESSING OFFICER COMPLETED ASSESSM ENT U/S. 3 ITA NO. 1668/PUN/2015 A.Y.2007 - 08 143(3) OF THE ACT ON 23 .12.2009. IN THE ORDER PASSED U/S. 143(3) R.W.S. 153A OF THE ACT ASSESSING OFFICER ASSESSED INCOME AT RS. 85 56 01 681/ - BUT AFTER G IVING DEPRECIATION THE SAME WAS REVISED TO RS.85 50 09 287/ - . THE CIT(A) NOTED THAT ASSESSING OFFICER HAD SIMPLY ADOPTED INCOME ASSESSED AS PER ORIGINAL ASSESSMENT ORDER COMPLETED U/S. 143(3) OF THE ACT. HE HAS FURTHER HELD THAT ORIGINAL ASSESSMENT ORDER WAS COMPLETED BEFORE THE DATE OF SEARCH AND HENCE WOULD NOT ABATE AS A RESULT OF THE SEARCH. THE CIT(A) FURTHER NOTED THAT THE ASSESSING OFFICER IS CORRECT IN LAW IN ADOPTING ASSESSED INCOME AS PER ORIGINAL ASSESSMENT ORDER. THE CIT(A) ALSO NOTED THAT VID E ORDER DATED 24.12.2013 THE CIT(A) HAD DECIDED THE APPEAL FILED AGAINST ORDER U/S. 143(3) OF ACT IN WHICH GROUND NO S . 2 TO 5 AND 6 WERE ALLOWED/ PARTLY ALLOWED WHEREAS GROUND NO S . 1 AND 7 WERE DISALLOWED. THE CIT(A) DIRECTED THE ASSESSING OFFICER TO G IVE EFFECT TO THE ORDER OF CIT(A) AGAINST THE ORIGINAL ASSESSMENT ORDER AND ADOPT THE CORRECT ASSESSED INCOME AFTER GIVING APPELLATE EFFECT. 6. THE ASSESSEE BEFORE US HAS RAISED THE ISSUE OF DENIAL OF DEPRECIATION CLAIMED BY ASSESSEE ON THE COMMERCIAL RIGHTS ACQUIRED BY IT IN THE PREVIOUS YEAR I.E . ASSESSMENT YEAR 2005 - 06 UNDER THE HEAD OF INTANGIBLE ASSETS. WE FIND THAT THE TRIBUNAL WHILE DECIDING THE SAID ISSUE OF CLAIMING DEPRECIATION ON INTANGIBLE AS SET IN ASSESSMENT YEAR 2007 - 08 AND WHILE DECIDING THE APPEAL AGAINST ASSESSMENT ORDER PASSED U/S.143(3) OF THE ACT HAS HELD THAT ASSESSEE IS ELIGIBLE TO CLAIM DEPRECIATION ON THE WRITTEN DOWN VALUE OF INTANGIBLE ASSETS IN THE IMPUGNED ASSESSMENT YEAR. IN VIEW OF THE ORDER OF TRIBUNAL BEING DECIDED IN ASSESSEES OWN CASE IN ITA NO . 360/PN/2014 AND ITA NOS.564 AND 565/PN/ 2014 WHICH WERE FILED AGAINST ASSESSMENT ORDER U/S.143(3) OF THE ACT IN ASSESSMENT YEAR 2007 - 08 PRESENT GROUNDS OF APPEAL RA ISED BY ASSESSEE STAND ALLOWED S INCE THE ASSESSING OFFICE R COMPLETED ASSESSMENT U/S. 143 (3) R.W.S.153A OF THE ACT ON ORIGINALLY ASSESSED INCOME U/S. 143(3) OF THE ACT. CONSEQUENT TO THE APPELLATE ORDER PASSED AGAINST SUCH ASSESSMENT BY CIT(A) 4 ITA NO. 1668/PUN/2015 A.Y.2007 - 08 AND THEREBY T HE TRIB UNAL THE INCOME ASSESSED IN THE HANDS OF ASSESSEE U/S. 143(3) R.W.S. 153A OF THE ACT THUS STANDS REDUCED. WE DIRECT THE ASSESSING OFFICER TO ADOPT THE SAME AS INCOME OF ASSESSEE IN THE ORDER PASSED U/S. 143(3) R.W.S . 153A OF THE ACT. THUS GROUNDS OF A PPEAL RAISED BY ASSESSEE ARE ALLOWED. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON THIS 28TH DAY OF NOVEMBER 2017. SD/ - SD/ - ( D. KARUNAKARA RAO ) ( SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 28 TH NOVEMBER 2017 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) PUNE - 11. 3. THE CIT(APPEALS) PUNE - 11. 4. THE PR. CIT(CENTRAL) PUNE. 5 . / DR ITAT A BENCH PUNE. 6. / GUARD FILE. // TRUE COPY // / BY ORDER / PRIVATE SECRETARY / ITAT PUNE .