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Income Tax Appellate Tribunal, HYDERABAD BENCHES “A” : HYDERABAD
Before: SHRI S.S.GODARA & SHRI LAXMI PRASAD SAHU
& 1234/HYD/2014 Assessment Years: 2007-08 & 2008-09 Deputy Commissioner of Income Tax, Circle-1(3), Hyderabad M/s.Boulder Hills Leisure Present Assessing Officer after Private Limited, Vs restructuring of Income Tax Dept: Hyderabad Deputy Commissioner of [PAN: AACCB5076C] Income Tax, Circle-1(2), Hyderabad (Appellant) (Respondent) For Assessee : Shri A.V.Raghuram, AR For Revenue : Shri Sunil Kumar Pandey, DR Date of Hearing : 24-03-2021 Date of Pronouncement : 06-05-2021 O R D E R PER S.S.GODARA, J.M. : These two assessee’s appeals for AYs.2007-08 & 2008-09 arise from the CIT(A)-II, Hyderabad’s order(s) both dated 03- 03-2014, passed in appeal Nos.0640 & 0641/CIT(A)-II, Hyd/ 2011-12; in proceedings u/s. 143(3) r.w.s.263 of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both parties. Case files perused.
It transpires at the outset that assessee’s identical sole substantive grievance challenges correctness of both the lower authorities’ action disallowing depreciation claim(s) for the :- 2 -: & 1234/Hyd/2014 precise reason that it had neither commenced its business nor the fixed assets had been kept as ready to use. The CIT(A)’s detailed discussion to this effect reads as under: 2. The facts and figures pertaining to A.Y.2007-08 and 2008-09 are as under: Sl. Asst. Year Income or loss Order u/s. Date of order Nature of additions No. returned Rs.(-) Depreciation 1 2007-08 3,88,81,784/- 143(3) 29.12.2009 disallowed: Rs.3,60,93,017/- Income from other 143(3) 2 2007-08 18.11.2011 sources: r.w.s.263 Rs.1,17,06,046/- Rs.(-) Income from other 143(3) 3 2008-09 5,09,79,421/- 18.11.2011 sources: r.w.s.147 Rs.55,33,162/- :- 3 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 4 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 5 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 6 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 7 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 8 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 9 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 10 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 11 -: ITA Nos. 1233 & 1234/Hyd/2014 :- 12 -: ITA Nos. 1233 & 1234/Hyd/2014
Learned authorised representative vehemently contended during the course of hearing that both the lower authorities have erred in law and on facts in treating the assessee as not eligible for the impugned depreciation claim pertaining to the corresponding fixed assets i.e., golf course in AYs.2007-08 and 2008-09. He further clarified that the assessee’s appeal ITTA No.515/2012 raising the very issue against the tribunal’s first round order in Section 263 proceedings holding to the contrary; is pending before the hon'ble jurisdictional high court and therefore, both these appeals deserve to be adjourned sine die so as to await final adjudication thereof. Mr.Raghuram lastly contended that the facts of the latter AY.2008-09 before us stand on a different footing since the assessee’s golf course had been let out giving rise to the income derived therefrom in FY.2007-08.
Learned departmental representative has strongly supported the impugned depreciation allowance made in both the lower proceedings.
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