The DCIT, Circle-1(2),, Baroda v. Kadilac Chemicals Pvt.Ltd.,, Baroda

ITA 2996/AHD/2009 | 2003-2004
Pronouncement Date: 08-01-2010 | Result: Dismissed

Appeal Details

RSA Number 299620514 RSA 2009
Assessee PAN AAACK8857E
Bench Ahmedabad
Appeal Number ITA 2996/AHD/2009
Duration Of Justice 1 month(s) 29 day(s)
Appellant The DCIT, Circle-1(2),, Baroda
Respondent Kadilac Chemicals Pvt.Ltd.,, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 08-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 08-01-2010
Assessment Year 2003-2004
Appeal Filed On 09-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD - AHMEDABAD D BENCH (BEFORE DR.O.K. NARAYANAN VICE-PRESIDENT AND SHRI MAHAVIR SINGH JUDICIAL MEMBER) ITA NO.2996/AHD/2009 [ASSTT.YEAR: 2003-2004] THE DCIT CIR.1(2) BARODA. VS. M/S KADILAC CHEMICALS P LTD 3 SHIVASHREYA SOCD VASNA RD BARODA.390015. PAN: AAACK 8857 E ASSESSEE BY : SHRI C.K.MISHRA REVENUE BY : NONE (WRITTEN SUBMISSION FILED) DATE OF ORDER RESERVED: 07-01-2010 O R D E R PER DR. O.K. NARAYANAN VICE-PRESIDENT : THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2003-2004. THIS APPEAL IS DIRECTED AGAINST THE ORDER OF CIT(A)-I AT BARODA DATED 26-08-2009 AND ARISES OUT OF THE PENALTY ORDER PASS ED UNDER SECTION 271(1)(C). 2. IN THE PRESENT CASE THE ASSESSEE COMPANY HAD CL AIMED ADDITIONAL DEPRECIATION OF RS.13 05 871/- ON THE INVESTMENT IN NEW PLANT AND MACHINERY ALONGWITH NORMAL DEPRECIATION. IN THE CO URSE OF ASSESSMENT PROCEEDINGS THE ASSESSING AUTHORITY DISALLOWED ASS ESSEES CLAIM FOR ADDITIONAL DEPRECIATION ON THE GROUND THAT THE NEW PLANT AND MACHINERY WERE NOT PURCHASED AFTER 31-03-2002. THE CLAIM FOR NORMAL DEPRECIATION WAS ALSO DISALLOWED FOR THE ABSENCE OF INSTALLATION REPORT. TOTALLY AN ADDITION OF RS.13 05 871/- WAS MADE AGAINST THE DIS ALLOWANCE OF NORMAL PAGE - 2 ITA NO.2996/AHD/2009 -2- AS WELL AS ADDITIONAL DEPRECIATION. THE IMPUGNED P ENALTY OF RS.12 80 000/- HAS BEEN MADE IN THE LIGHT OF THE AB OVE ADDITION. 3. WHEN THE MATER WAS CALLED ON FOR HEARING NOBODY WAS PRESENT FOR THE RESPONDENT AUTHORITY. BUT ASSESSEE HAS FILED A COPY OF THE TRIBUNAL ORDER IN THE CORRESPONDING QUANTUM APPEAL FILED BY THE ASSESSEE AND REQUESTED TO ADJUDICATE THE PENALTY APPEAL IN THE L IGHT OF THE SAID ORDER OF TRIBUNAL IN THE QUANTUM APPEAL. THE QUANTUM APPEAL FILED BY THE ASSESSEE QUESTIONING THE DISALLOWANCES OF NORMAL AN D ADDITIONAL DEPRECIATION WAS HEARD AND DISPOSED OF BY THE ITAT AHMEDABAD BENCH- C IN THEIR CAMP SITTING AT BARODA THROUGH THE ORDER DATED 09-11-2009 IN ITA NO.4127/A/2007. THE TRIBUNAL HAS DELETED THE D ISALLOWANCE OF NORMAL AND ADDITIONAL DEPRECIATION MADE BY THE ASSE SSING AUTHORITY WHICH WERE CONFIRMED BY THE CIT(A). 4. WHEN THE ADDITIONS WHICH PROMPTED THE LEVY OF P ENALTY HAVE BEEN DELETED BY THE TRIBUNAL IN THE QUANTUM APPEAL THE PENALTY ORDER HAS NO LEGS TO STAND. THE SUBSTANCE OF THE PENALTY UNDER SECTION 271(1)(C) STANDS VITIATED. THEREFORE WE FIND THAT THE PENAL TY OF RS. 12 80 000/- IS NOT SUSTAINABLE IN THE PRESENT CASE. ACCORDINGLY THE CIT(A) IS JUSTIFIED IN DELETING THE PENALTY. 5. IN RESULT THIS APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED ON FRIDAY THIS 8TH DAY OF JANUAR Y 2010. SD/- SD/- (MAHAVIR SINGH) JUDICIAL MEMBER (DR.O.K. NARAYANAN) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 08-01-2010 PAGE - 3 ITA NO.2996/AHD/2009 -3- COPY OF THE ORDER FORWARDED TO: 1) : ASSESSEE 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR ITAT AHMEDABAD