DCIT, New Delhi v. M/s. SSP Aviation Ltd.,, New Delhi

ITA 473/DEL/2013 | 2009-2010
Pronouncement Date: 31-07-2013 | Result: Dismissed

Appeal Details

RSA Number 47320114 RSA 2013
Assessee PAN AAHCS8024N
Bench Delhi
Appeal Number ITA 473/DEL/2013
Duration Of Justice 6 month(s) 6 day(s)
Appellant DCIT, New Delhi
Respondent M/s. SSP Aviation Ltd.,, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 31-07-2013
Date Of Final Hearing 25-07-2013
Next Hearing Date 25-07-2013
Assessment Year 2009-2010
Appeal Filed On 24-01-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH G GG G : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO.473/DEL/2013 473/DEL/2013 473/DEL/2013 473/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2009 2009 2009 2009- -- -10 1010 10 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -18 ROOM 18 ROOM 18 ROOM 18 ROOM N NN NO.327 O.327 O.327 O.327 3 33 3 RD RDRD RD FLOOR ARA CENTRE FLOOR ARA CENTRE FLOOR ARA CENTRE FLOOR ARA CENTRE E EE E- -- -2 JHANDEWALAN EXTN. 2 JHANDEWALAN EXTN. 2 JHANDEWALAN EXTN. 2 JHANDEWALAN EXTN. NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S SSP AVIATION LIMITED M/S SSP AVIATION LIMITED M/S SSP AVIATION LIMITED M/S SSP AVIATION LIMITED (FORMERLY M/S SSP PROPERTIES (FORMERLY M/S SSP PROPERTIES (FORMERLY M/S SSP PROPERTIES (FORMERLY M/S SSP PROPERTIES PVT.LTD.) PVT.LTD.) PVT.LTD.) PVT.LTD.) 17 1717 17- -- -B MGF HOUSE B MGF HOUSE B MGF HOUSE B MGF HOUSE ASAF ALI ROAD ASAF ALI ROAD ASAF ALI ROAD ASAF ALI ROAD NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 002. 110 002. 110 002. 110 002. PAN : PAN : PAN : PAN : AAHCS8024N. AAHCS8024N. AAHCS8024N. AAHCS8024N. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SATPAL SINGH SR.DR. RESPONDENT BY : SHRI G.C.SRIVASTAVA AND SHRI SAURABH SRIVASTAVA ADVOCATES. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VP VPVP VP : : : : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER OF LEARNED CIT(A)-III NEW DELHI DATED 1 ST NOVEMBER 2012 FOR THE AY 2009-10. 2. THE ONLY GROUND RAISED BY THE REVENUE READS AS UNDE R:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT(A) HAS ERRED IN ALLOWING DEPRECIATION ON AIR CRAFT @ 40% AS AGAINST THE DEPRECIATION ALLOWED @ 15% BY THE ASSESSING OFFICER. 2. THE ORDER OF THE CIT(A) IS ERRONEOUS AND IS NOT TENABLE ON FACTS AND IN LAW. ITA-473/DEL/2013 2 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MAT ERIAL PLACED BEFORE US. WE FIND THIS ISSUE TO BE SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HON'BLE JURISDICTIONAL HIGH C OURT IN THE CASE OF CIT VS. SRC AVIATION P.LTD. ITA NO.487-490/ 2012 DATED 3 RD SEPTEMBER 2012. IN FACT LEARNED CIT(A) ALSO ALLOW ED THE RELIEF FOLLOWING THE ABOVE DECISION OF HON'BLE JURISDICTIONA L HIGH COURT. THE RELEVANT PORTION OF LEARNED CIT(A)S ORDER IS REPRODU CED BELOW FOR READY REFERENCE:- FURTHER I FIND THAT THE FACTS IN THE APPELLANTS CA SE ARE FULLY COVERED BY THE RECENT DECISION OF THE JURISDICT IONAL HIGH COURT IN THE CASE OF CIT VS. SRC AVIATION P.LTD. (ITA NO.487-490/2012) (DATED 3 RD SEPTEMBER 2012) WHEREIN THE HONBLE COURT IN DETAIL AFTER HAVING DISCUSSED THE DE CISION OF KIRLOSKER OIL ENGINES (SUPRA) HAVE COME TO THE CONCLUSION THAT DEPRECIATION ON AEROPLANES HAVE TO BE ALLOWED @ 40%. HERE I WOULD LIKE TO QUOTE THE PARA 8.12 AND PARA 9 FROM THE SAID ORDER OF SRC AVIATION WHICH READ AS UNDER:- 8.12. IN THE PRESENT CASE THERE IS NO SUCH CLASSIFICATION UNDER THE HEAD AEROPLANES AS IT WAS APPLICABLE IN THE CASE OF THE CIT VS. KIRLOSKER OIL EN GINES (SUPRA). DURING THE YEAR UNDER CONSIDERATION ONLY O NE DESCRIPTION IS THERE WHICH IS IN ITEM 3 WHICH READ AS U NDER:- AEROPLANE AEROENGINES 13. NO OTHER SEPARATE HEAD HAS BEEN GIVEN FOR CLAIMING OF DEPRECIATION UNDER THE H EAD AEROPLANES WHICH WAS DISTINCTIVELY DESCRIBED IN THE OL D APPENDIX AS APPLICABLE IN THE CASE OF THE CIT VS. KIRL OSKER OIL ENGINES (SUPRA). 9. THIS COURT IS CONSCIOUS OF THE FACT THAT THE GENERI C TERM AIRCRAFT IS BROADER AND THERE CAN BE NO DOUB T THAT IT ENCOMPASSES THE EXPRESSION AEROPLANE. HOWEVER THIS COURT IS NOT CALLED UPON TO INTERPRET THE TERM AIR CRAFT IN THE PRESENT APPEAL. THE QUESTION IS WHETHER THE BEECHCRAFT SUPER KING AIR B-200C PURCHASED BY THE ASSESSEE FELL WITHIN THE DESCRIPTION OF AEROPLANE. LD. COUNSEL FOR THE REVENUE SOUGHT TO URGE THAT THE AIR PLANE AEROENGINE INCLUDED ONLY AERO ENGINE WHICH CAN BE USED FOR AIRPLANE COVERED BY THE ENTRY III(3)(I) IN THE HEAD PLANT ITA-473/DEL/2013 3 & MACHINERY. WE SEE NO WARRANT FOR SUCH A RESTRICTIV E INTERPRETATION. EVEN WITH REGARD TO THE HISTORY OF THE ENTRY ALL THAT CAN BE INFERRED IS THAT AIRCRAFT IS A BROA DER DESCRIPTION WHICH INCLUDES ALL MANNER OF CRAFT OR MEA NS OF TRANSPORT AIDED BY FLIGHT (SUCH AS BALLOONS PLANES ET C.) WITHIN THE DEPRECIATION RULE. FOR THE REASONS BEST KN OWN THE RULE MAKING AUTHORITY CONFINED AND NARROWED DEF INITION TO AEROPLANE. THIS CONCLUSION IS ALSO SUPPORTED BY T HE FACT THAT OTHER ENTRIES IN RULE III(3) OF THE DEPREC IATION TABLE EXTEND TO ENTIRE VEHICLES SUCH AS COMMERCIALLY PLIABLE BUSES CARS ETC. THEY DO NOT CONFINE THE SCOPE OF DEPRECIATION ONLY TO PARTS OF SUCH VEHICLES. 10. IN VIEW OF THE ABOVE DISCUSSION THIS COURT IS SATISFIED THAT THE TRIBUNALS JUDGMENT DOES NOT DISCLOSE ANY ERROR AS REGAR DS INTERPRETATION OF ENTRY III(3)(I) OF THE DEPRECIATI ON RULES. ITS UPHOLDING THE DEPRECIATION ALLOWABLE IN THE PRES ENT CASE TO THE TUNE OF 40% CANNOT BE TERMED AS UNJUSTIFIE D OR UNWARRANTED. FROM THE PERUSAL OF THE ABOVE FINDINGS OF THE JURISDI CTIONAL HIGH COURT THERE IS NO DOUBT IN COMING TO CONCLUSION THAT IN THE FACTS OF THE APPELLANTS CASE THE DEPRECIATION ON AIRCRAFT IS TO BE ALLOWED @ 40% AND NOT 15% AS HAS BEE N DONE BY THE AO. 4. SINCE LEARNED CIT(A) HAS ALLOWED THE RELIEF FOLLO WING THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF S RC AVIATION P.LTD. (SUPRA) WE DO NOT FIND ANY JUSTIFICATION TO INTERFER E WITH THE SAME. ACCORDINGLY THE ORDER OF LEARNED CIT(A) IS SUSTAINED. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED . DECISION PRONOUNCED IN THE OPEN COURT ON 31 ST JULY 2013. SD/- SD/- ( (( (I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 31.07.2013 VK. ITA-473/DEL/2013 4 COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TAX DEPUTY COMMISSIONER OF INCOME TAX DEPUTY COMMISSIONER OF INCOME TAX DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -18 ROOM NO.327 18 ROOM NO.327 18 ROOM NO.327 18 ROOM NO.327 3 33 3 RD RDRD RD FLOOR ARA CEN FLOOR ARA CEN FLOOR ARA CEN FLOOR ARA CENTRE E TRE E TRE E TRE E- -- -2 JHANDEWALAN EXTN. 2 JHANDEWALAN EXTN. 2 JHANDEWALAN EXTN. 2 JHANDEWALAN EXTN. NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 2. RESPONDENT : M/S SSP AVIATION LIMITED M/S SSP AVIATION LIMITED M/S SSP AVIATION LIMITED M/S SSP AVIATION LIMITED (FORMERLY M/S SSP PROPERTIES PVT.LTD.) (FORMERLY M/S SSP PROPERTIES PVT.LTD.) (FORMERLY M/S SSP PROPERTIES PVT.LTD.) (FORMERLY M/S SSP PROPERTIES PVT.LTD.) 17 1717 17- -- -B MGF HOUSE ASAF ALI ROAD B MGF HOUSE ASAF ALI ROAD B MGF HOUSE ASAF ALI ROAD B MGF HOUSE ASAF ALI ROAD NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 002. 110 002. 110 002. 110 002. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR