THE DY. COMMISSIONER OF INCOME TAX CIRCLE-1(1)(2), AHMEDABAD vs. M/S. D.B. CORPORATION LTD., AHMEDABAD

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ITA 612/AHD/2017Status: DisposedITAT Ahmedabad04 March 2019AY 2006-072 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that a co-ordinate bench had previously quashed the revision order under section 263, which was the basis for the assessment order. Therefore, the appeal challenging the deletion of the addition was rendered academic and unsustainable.

What were the facts?

The Assessing Officer appealed the deletion of an addition made on account of additional depreciation. The deletion was made by the CIT(A).

What were the issues?

Whether the appeal challenging the deletion of additional depreciation is maintainable when the underlying revision order has been quashed.

Which sections of the Income-tax Act were involved?

Section 32(1)(iia),Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD BENCH ‘D’, AHMEDABAD

Pronounced: 04.03.2019

Per Pramod Kumar, Vice President:

1.

By way of this appeal, the Assessing Officer has challenged correctness of the order dated 29th December 2016 passed by the CIT(A)-1, Ahmedabad in the matter of assessment under section 143(3) of the Income-tax Act, 1961, for the assessment year 2006-07.

2.

Grievance raised by the appellant is as follows:-

“That the ld. CIT(A) erred in law and on facts in deleting the addition of Rs.1,99,60,265/- made u/s 32(1)(iia) of the I.T. Act on account of additional depreciation claimed. ”

3.

When this appeal was called out for hearing, our attention was invited to a co- ordinate bench decision dated 23.03.2017 in the assessee’s own case (ITA Nos. 2373/Ahd/2011 and 1088/Ahd/2014; DB Corp Ltd vs. DCIT) whereby the co-ordinate bench has quashed the very revision order, passed under section 263 of the Income- tax Act, 1961 – as a result of which the impugned penalty and the related

ITA No. 612/Ahd/2017 DCIT Vs. DB Corporation Ltd Assessment year: 2006-07 Page 2 of 2

assessment order was framed. It is pointed out that once the revision order stands quashed, for this short reason alone, all the related consequent proceedings also cease to hold good in law. When learned Departmental Representative was confronted with this development, he fairly agreed with the plea canvassed by the learned counsel.

4.

The objection raised by the learned counsel is indeed well taken. As the related revision proceedings under section 263 stand quashed, the correctness of deletion of impugned penalty, on merits, is wholly academic. The impugned penalty does not have any legal basis as on now. The grievance of the Assessing Officer, for deletion of impugned penalty, is thus ill-conceived and unsustainable in law. We reject the same.

5.

In the result, the appeal is dismissed. Pronounced in the open court today on the 4th day of March, 2019.

Sd/- Sd/-

Justice P P Bhatt Pramod Kumar (President) (Vice President) Ahmedabad, dated the 4th day of March, 2019

Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) DR (6) Guard File By order etc True Copy Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

1.

Date of dictation: ...order prepared as per the two pages manuscripts of Hon’ble VP which are attached herewith........04.03.2019.......... 2. Date on which the typed draft is placed before the Dictating Member: .... 04.03.2019....... 3. Date on which the approved draft comes to the Sr. P.S./P.S.: …04.03.2019... 4. Date on which the fair order is placed before the Dictating Member for Pronouncement:… 04.03.2019… 5. Date on which the file goes to the Bench Clerk : ...... 6. Date on which the file goes to the Head Clerk : ……………………………. 7. The date on which the file goes to the Assistant Registrar for signature on the order: …. 8. Date of Despatch of the Order: ………………......

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