The DCIT, Circle-4,, Ahmedabad v. Kadamreality Pvt. Ltd.,, Ahmedabad

ITA 2397/AHD/2013 | 2010-2011
Pronouncement Date: 29-11-2017 | Result: Dismissed

Appeal Details

RSA Number 239720514 RSA 2013
Assessee PAN AADCK0211F
Bench Ahmedabad
Appeal Number ITA 2397/AHD/2013
Duration Of Justice 4 year(s) 1 month(s) 25 day(s)
Appellant The DCIT, Circle-4,, Ahmedabad
Respondent Kadamreality Pvt. Ltd.,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 29-11-2017
Date Of Final Hearing 26-07-2017
Next Hearing Date 26-07-2017
First Hearing Date 26-07-2017
Assessment Year 2010-2011
Appeal Filed On 04-10-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AHMEDABAD BEFORE SHRI S. S. GODARA JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA ACCOUNTANT MEMBER ITA NO. 2397/AHD/2013 WITH CO NO. 86/AHD/2014 (ASSESSMENT YEAR: 2010-11) THE DCIT CIRCLE-4 AHMEDABAD NAVJIVAN TURST BLDG. OFF. ASHRAM ROAD AHMEDABAD APPELLANT VS. M/S. KADAM REALITY PVT. LTD. 34 VISHWAKATU-II IOC PETROL PUMP BODKDEV AHMEDABAD RESPONDENT PAN: AADCK0211F /BY REVENUE : SHRI V. K. SINGH SR. D.R. /BY ASSESSEE : SHRI S. N. DIVATIA A.R. /DATE OF HEARING : 07.11.2017 /DATE OF PRONOUNCEMENT : 29.11.2017 ORDER PER S. S. GODARA JUDICIAL MEMBER THIS REVENUES APPEAL AND ASSESSEES CROSS OBJECTIO N FOR ASSESSMENT YEAR 2010-11 EMANATE FROM THE CIT(A)-VIII AHMEDABADS O RDER DATED 03.07.2013 IN CASE NO. CIT(A)-VIII/DCIT/CIR.4/92/12-13 REVERSING DISALLOWANCE OF DEPRECIATION OF RS.55 87 121/- PERTAINING TO WIND TURBINE GENERA TOR AND AFFIRMING ASSESSING ITA NO. 2397/AHD/13 WITH CO NO. 86/AHD/14 [DCIT VS. M/S. KADAM REALITY PVT. LTD.] A.Y. 2010- 11 - 2 - OFFICERS ACTION WORKING OUT BOOK PROFITS U/S. 115J B IN VIEW OF ADJUSTMENTS MADE IN RESPECT OF DEPRECIATION DISALLOWANCE; RESPECTIVE LY IN PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT 1961; IN SHORT THE ACT. 2. WE COME TO REVENUES GRIEVANCE FIRST. ITS SOLE ARGUMENT IS THAT THE ASSESSEE HAD FAILED TO PROVE COMMISSIONING AND GENERATION OF POWER W.E.F. 31.03.2010 REGARDING THE WIND TURBINE GENERATOR IN QUESTION. WE FIND THAT THE CIT(A)S ORDER UNDER CHALLENGE DISCUSSES AT LENGTH ALL THE RELEVAN T FACTS AS WELL AS ASSESSING OFFICERS FINDINGS AS UNDER: 3.3 DECISION: I HAVE CAREFULLY PERUSED THE FINDING GIVEN BY THE A .O AND SUBMISSIONS MADE BY THE APPELLANT. I HAVE ALSO GONE THROUGH THE PAPER BOOK SUBMITTED BY THE APPELLANT AND VARIOUS EVIDENCES ATTACHED IN THE PAPER BOOK. IT HAS BEEN S UBMITTED BY THE APPELLANT THAT THERE IS NO NEW EVIDENCE IN THE PAPER BOOK AND ALL THE DOCUM ENTS WERE SUBMITTED BEFORE THE A.O AS WELL. THE A.O HAS OBSERVED THE DEPRECIATION CLAIMED BY TH E APPELLANT ON WIND TURBINE GENERATOR (WTG) ON THE GROUND THAT IT WAS NOT PUT T O USE DURING THE F.Y. ACCORDING TO HIM. THE APPELLANT COULD NOT FURNISH ANY DETAILS RE GARDING GENERATION OF POWER ON 31/03/2010. THE APPELLANT ON THE OTHER HAND HAS SUB MITTED THAT THE WTG WAS PROPERLY COMMISSIONED ON 31/03/2010 IT GENERATED 1374 UNITS OF ELECTRICITY BETWEEN THE PERIOD 31/03/2010 TO 27/04/2010. THE AGREEMENT FOR SALE OF WIND ENERGY WAS EXECUTED ON 31/03/2010 WITH SAID ELECTRICITY CO. AND THEREFORE THE WTG WAS COMMISSIONED INSTALLED PUT TO USE AS ON 31/03/2010. THE APPELLANT HAS ACCO RDINGLY CLAIMED THAT THE DEPRECIATION SHOULD BE ALLOWED. AFTER CAREFULLY CONSIDERING THE VARIOUS EVIDENCES I AM OF THE CONSIDERED OPINION THAT THE APPELLANT IS ENTITLED T O DEPRECIATION AS ALL THE CONDITIONS REQUIRED FOR CLAIMING DEPRECIATION HAS BEEN FULFIL LED. THE APPELLANT HAS ENCLOSED A CERTIFICATE ON PAGE NO.55 ON THE PAPER BOOK WHICH C ERTIFIES THAT THE WTG HAS BEEN COMMISSIONED AND PUT TO USE ON 31/03/2010. THE CERT IFICATE HAS BEEN ISSUED BY SRIRAM EPC LTD. CHENNAI THE INSTALLER OF THE WTG. ON PAG E NO.56 OF THE PAPER BOOK THE APPELLANT HAS GIVEN A DOCUMENT WHICH HAS BEEN ISSUE D BY TIRUNELVEIL ELECTRICITY DISTRIBUTION CIRCLE OFFICE OF THE SUPERINTENDENT EN GINEER. THE STATEMENT SHOWING THE ENERGY GENERATED THROUGH WIND MILL FOR THE MONTH OF APRIL 2010 AND INITIAL READING HAS BEEN TAKEN ON 31/03/3010 AND FINAL READING ON 27/04 /2010. THE EXPORT OF ELECTRICITY AS ON 31/03/2010 WAS 0.040 AND THAT ON 27/04/2010 WAS 4.6 20. FURTHER ON PAGE NO.57 THERE IS A LETTER FROM SUPERINTENDENT ENGINEER TIRUNELVEIL ELECTRICITY DISTRIBUTION CIRCLE WHICH SAYS THAT THE WTG HAS BEEN COMMISSIONED SATISFACTOR ILY ON 31/03/2010. ALL THE ABOVE DOCUMENTS/EVIDENCES SHOW THAT THE WTG WAS IN FACT COMMISSIONED AND PUT TO USE ON 31/03/3010. THE STATEMENT SHOWING ENERGY GENERATED ALSO SHOWING CERTAIN POSITIVE READING AS ON 31/03/2010. THE TAR NIL NADU STATE ELECTRICITY HAS ALSO CERTIFIED THAT THE WTG WAS COMMISSIONED ON 31/03/20 10. FURTHER THE PARTY WHO HAS SOLD AND COMMISSIONED THE WTG HAS ALSO GIVEN A CERTIFICA TE CERTIFYING THE INSTALLATION AND COMMISSIONING ON 31/03/2010. IN VIEW OF THE CLEAR E VIDENCES AS MENTIONED ABOVE THE DISALLOWANCE OF DEPRECIATION ON WTG MADE BY THE A.O WAS NOT JUSTIFIED. THERE IS AN OVERWHELMING EVIDENCE TO PROVE THAT THE WTG WAS COM MISSIONED AND PUT TO USE ON 31/03/2010. THEREFORE THE A.O IS DIRECTED TO DELET E THE DISALLOWANCE. ITA NO. 2397/AHD/13 WITH CO NO. 86/AHD/14 [DCIT VS. M/S. KADAM REALITY PVT. LTD.] A.Y. 2010- 11 - 3 - 3. WE CONFRONTED THE REVENUE THE ABOVE EXTRACTED FA CT THAT THE ASSESSEE HAD SUCCESSFULLY PROVED ITS WIND TURBINE GENERATOR TO H AVE BEEN COMMISSIONED ON 31.03.2010 AS PER THE STATE ELECTRICITY BOARD CERTI FICATE. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THE ABOVE EXTRACTED FACTS TAKEN NOTE IN THE LOWER APPELLATES FINDINGS BASED ON CORRECT APPRECIATION OF EVIDENCE UNDER CHALLENGE REVERSING ASSESSING OFFICERS ACTION. THE REVENUE S SOLE SUBSTANTIVE GROUND AS WELL AS ITS MAIN APPEAL ITA NO. 2397/AHD/2013 FAIL. 4. WE NOW COME TO ASSESSEES CROSS OBJECTION 86/AHD /2014 SEEKING TO REVERSE BOTH THE LOWER AUTHORITIES ACTION RE-COMPUTING BOO K PROFIT U/S.115JB OF THE ACT AFTER ADDING DISALLOWANCE / ADDITION PERTAINING TO WIND TURBINE GENERATOR AND CARS. MR. DIVATIA FAIRLY POINTS OUT AT THE OUTSET THAT TH E ASSESSEE IS NO MORE INTERESTED IN PRESSING FOR THE SAME. HE FURTHER FAILS TO INDICAT E ANY IRREGULARITY OR INFIRMITY IN THE IMPUGNED COMPUTATION. WE THEREFORE REJECT ASSE SSEES INSTANT CROSS OBJECTION AS NOT PRESSED. 5. THIS REVENUES APPEAL ITA NO.2397/AHD/2013 AS WE LL AS ASSESSEES CO NO.86/AHD/2014 ARE DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THE 29 TH DAY OF NOVEMBER 2017.] SD/- SD/- (PRADIP KUMAR KEDIA) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL M EMBER AHMEDABAD: DATED 29/11/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ --. . /0 / DR ITAT AHMEDABAD ITA NO. 2397/AHD/13 WITH CO NO. 86/AHD/14 [DCIT VS. M/S. KADAM REALITY PVT. LTD.] A.Y. 2010- 11 - 4 - 1 +23 / GUARD FILE. BY ORDER / . // . /0