M/s. S. Power (p) Ltd., New Delhi v. ITO, New Delhi

ITA 6542/DEL/2014 | 2008-2009
Pronouncement Date: 27-10-2016 | Result: Allowed

Appeal Details

RSA Number 654220114 RSA 2014
Assessee PAN AAACS1909H
Bench Delhi
Appeal Number ITA 6542/DEL/2014
Duration Of Justice 1 year(s) 10 month(s) 24 day(s)
Appellant M/s. S. Power (p) Ltd., New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 27-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC 2
Tribunal Order Date 27-10-2016
Date Of Final Hearing 26-10-2016
Next Hearing Date 26-10-2016
Assessment Year 2008-2009
Appeal Filed On 03-12-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-II : NEW DELHI BEFORE SHRI R.S. SYAL ACCOUNTANT MEMBER ITA NOS.6542 & 6543/DEL/2014 ASSESSMENT YEARS : 2008-09 & 2009-10 S. POWER (P) LTD. C/O M/S RRA TAXINDIA D-28 SOUTH EXTENSION PART-I NEW DELHI. PAN: AAACS1909H VS. ITO WARD-7(1) NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAKESH GUPTA & SHRI SOMIL AGGARWAL ADVOCATES DEPARTMENT BY : SHRI F.R. MEENA SR. DR DATE OF HEARING : 26.10.2016 DATE OF PRONOUNCEMENT : 27.10.2016 ORDER THESE APPEALS FILED BY THE ASSESSEE AGAINST SEPARA TE ORDERS OF THE CIT(A) BOTH DATED 16.10.2014 RELATING TO AYS 2008- 09 AND 2009-10 INVOLVE SOME COMMON ISSUES. I AM THEREFORE PROCE EDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. ITA NOS.6542 & 6543 /DEL/2014 2 ASSESSMENT YEAR 2008-09 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE FILED RETURN ORIGINALLY ON 30.3.2009 DECLARING INCOME OF RS.2 78 700/- WHICH WAS PROCESSED U/S 143(1) OF THE ACT. THEREAFTER THE AO ISSUED NOTICE U/S 148 ON THE GROUND THAT THE ASSESSEE CLAIMED DEDUCTION O F REPAIR AND MAINTENANCE AT RS.4 31 314/- AND DEPRECIATION ON BU ILDING AT RS.1 60 563/- WHICH WERE NOT ALLOWABLE U/S 24 OF T HE ACT AS THE INCOME WAS COMPUTED BY THE ASSESSEE UNDER THE HEAD INCOME FROM HOUSE PROPERTY. EVENTUALLY THE ASSESSMENT WAS COMPLETE D AT A TOTAL INCOME OF RS.15 21 230/-. THE ASSESSEE SUCCEEDED PARTLY B EFORE THE LD. CIT(A). 3. FIRST GROUND OF THE ASSESSEES APPEAL ASSAILS TH E INITIATION OF RE- ASSESSMENT PROCEEDINGS. IN ORDER TO CONSIDER THE R IVAL SUBMISSIONS MADE IN THIS BEHALF IT IS SINE QUA NON TO NOTE DOWN THE REASONS DATED 22.3.2012 RECORDED BY THE AO A COPY OF WHICH IS AV AILABLE AT PAGE 10 OF THE PAPER BOOK READING AS UNDER:- REASON TO BELIEF FOR ESCAPEMENT OF INCOME & RECORD ED U/S 147 OF THE I.T. ACT 1961- M/S S. POWER PVT. LTD C-60-B KALKAJI NEW DELHI-11 0019. ITA NOS.6542 & 6543 /DEL/2014 3 ASSESSMENT YEAR 2008-09 - PAN AAACS1909H THE ASSESSEE FILED A RETURN DECLARING TOTAL INCOME OF RS.2 78 700/- ON 31.03.2009. IT WAS PROCESSED U/S 143(1) AND NO NOTI CE U/S 143(2) WAS ISSUED TO THE ASSESSEE. FROM A PERUSAL OF THE RETUR N IT IS NOTICED THAT THE ASSESSEE HAS CLAIMED DEDUCTION FOR REPAIR AND MAINT AINANCE AT RS.3 75 049/- AND DEPRECIATION ON BUILDING AT RS.1 45 546/- WHICH IS NOT ALLOWABLE UNDER SECTION 24 OF THE I.T. ACT. AS THE INCOME HAS BEEN COMPUTED BY THE ASSESSEE UND ER THE HEAD OF INCOME FROM OTHER SOURCES AFTER CLAIMING 30% DEDUCT ION UNDER SECTION 24A OF THE I.T. ACT 1961. I HAVE THEREFORE REASONS TO BELIEVE THAT THE INCO ME TO THE TUNE OF RS.5 20 595/- HAS ESCAPED ASSESSMENT. THE ESCAPEMEN T OF INCOME HAS BEEN CLEARLY ON ACCOUNT OF FAILURE ON THE PART OF T HE ASSESSEE TO TRULY AND FULLY DISCLOSE ALL MATERIAL FACTS NECESSARY FOR ASS ESSMENT. THUS IT IS A FIT CASE FOR INITIATION OF PROCEEDINGS U/S 147 OF THE I .T. ACT 1961. ISSUE NOTICE U/S 148 FOR THE ASSTT. YEAR 2008-09. 4. A BARE PERUSAL OF THE REASONS TRANSPIRES THAT TH E ASSESSEE IN THE OPINION OF THE AO CLAIMED DEDUCTION OF REPAIR AND MAINTENANCE AT RS.3 75 049/- AND DEPRECIATION ON BUILDING AT RS.1 54 546/- WHICH WAS NOT ALLOWABLE U/S 24 OF THE ACT IN THE COMPUTATION OF INCOME UNDER THE HEAD `INCOME FROM HOUSE PROPERTY. THE ASSESSEES COMPUTATION OF INCOME IS PLACED ON PAGE 2 OF THE PAPER BOOK WHICH DIVULGES THAT THE ASSESSEE DID NOT CLAIM SUCH DEDUCTIONS IN THE COMPU TATION OF INCOME FROM HOUSE PROPERTY AS HAS BEEN NARRATED BY THE AO IN THE REASONS FOR RE-ASSESSMENT. THUS IT IS CLEAR THAT THE REASONS T AKEN NOTE OF BY THE AO ITA NOS.6542 & 6543 /DEL/2014 4 ARE UNFOUNDED AND ARE CONTRARY TO THE ACTUAL STATE OF AFFAIRS AS DEPICTED FROM THE COMPUTATION OF TOTAL INCOME. WHEN THE VER Y REASONS DO NOT SUPPORT A CORRECT VIEWPOINT OF THE AO THERE CAN BE NO QUESTION OF MAKING AN ASSESSMENT U/S 147 OF THE ACT. 5. IT HAS BEEN BROUGHT TO MY NOTICE THAT SIMILAR RE ASONS WERE RECORDED BY THE AO FOR FRAMING ASSESSMENT U/S 147 IN RESPECT OF ASSESSMENT YEAR 2010-11. A COPY OF THE ORDER DATED 29.4.2016 PASSED BY THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE AY 2010-11 IN ITA N O.6545/DEL/2014 IS AVAILABLE ON RECORD. THE TRIBUNAL HAS QUASHED THE R EASSESSMENT. IN THE ABSENCE OF ANY DISTINCTION IN THE FACTS FOR THE IN STANT AND THE LATER YEAR HAVING BEEN BROUGHT TO MY NOTICE BY THE LD. DR AND RESPECTFULLY FOLLOWING THE PRECEDENT I SET ASIDE THE INITIATION OF REASSESSMENT PROCEEDINGS AND THE CONSEQUENTIAL REASSESSMENT ORDE R. ASSESSMENT YEAR 2009-10 6. BOTH THE SIDES ARE IN AGREEMENT THAT THE FACTS A ND CIRCUMSTANCES OF THIS APPEAL ARE MUTATIS MUTANDIS SIMILAR TO THOSE FOR THE AY 2008-09. FOR THIS YEAR ALSO THE AO INITIATED REASSESSMENT P ROCEEDINGS BY ITA NOS.6542 & 6543 /DEL/2014 5 RECORDING SIMILAR REASONS. FROM COMPUTATION OF TOT AL INCOME IT HAS BEEN NOTICED THAT THE ASSESSEE DID NOT CLAIM ANY DE DUCTION OF REPAIR AND MAINTENANCE AND DEPRECIATION ON BUILDING IN THE COM PUTATION OF INCOME U/S 24 OF THE ACT. A COPY OF REASONS LEADING TO TH E REASSESSMENT HAS BEEN PLACED ON PAGE 10 OF THE PAPER BOOK WHICH ARE IDENTICAL EXCEPT FOR THE CHANGE IN THE AMOUNTS. FOLLOWING THE VIEW TAKE N HEREINABOVE I QUASH THE INITIATION OF REASSESSMENT PROCEEDINGS AN D THE CONSEQUENTIAL PROCEEDINGS FLOWING THEREFROM. 7. IN VIEW OF THE SETTING ASIDE OF THE INITIATION OF REASSESSMENT PROCEEDINGS AND THE CONSEQUENTIAL ORDERS THERE IS NO NEED TO DISPOSE OF OTHER GROUNDS OF APPEALS ON MERITS. 8. IN THE RESULT BOTH THE APPEALS ARE ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 27.10.20 16. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED 27 TH OCTOBER 2016. DK ITA NOS.6542 & 6543 /DEL/2014 6 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT AR ITAT NEW DELHI.