Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, AHMEDABAD ‘B’ BENCH, AHMEDABAD
I TA N o. 2 6 0 5/ Ah d /2 0 1 5 Ad a ni En e r gy Lt d Vs . DC I T Ass e ss me n t Y ea r : 2 0 12 - 1 3 Page 1 of 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD ‘B’ BENCH, AHMEDABAD [Coram: Pramod Kumar AM and Mahavir Prasad JM] ITA No.2605/Ahd/2015 Assessment Year: 2012-13 Adani Energy Limited ......…………......Appellant Adani House, Nr. Mithakhali Six Roads, Navrangpura, Ahmedabad-380009 [PAN: AABCG 5533 E] Vs. Dy. Commissioner of Income-tax .....................Respondent Circle-1, Ahmedabad Appearances by Vijay Ranjan & Ira Kapoor, for the Appellant Mudit Nagpal, for the respondent Hearing concluded on: 15.06.2018 Order pronounced on : 12.09.2018
O R D E R Per Pramod Kumar, AM: This appeal is directed against the order dated 15th July, 2015 passed by the 1. CIT(A)-1, Ahmedabad, in the matter of assessment under section 143(3) of the Income- tax Act, 1961, for the assessment year 2012-13.
Grievance of the assessee is as follows:-
“On the facts and in the circumstances of the case, the learned CIT(A) erred in confirming disallowance of depreciation of Rs.32,80,620/- made by the Assessing Officer on the ground that no business activities were carried on during this year by the appellant.”
Learned representatives agree that whatever we decide for the assessment year 2011-12 will apply, mutatis mutandis, in this case as well.
Vide our order of even date, and dealing with the AY 2011-12 in assessee’s own case, we have held as follows: “6. We have heard the rival contentions, perused the material on record and duly considered factual matrix of the case in the light of the applicable legal position. 7. We have noted that the plea of the assessee before us is that what has been covered by the plant and machinery is in fact in the nature of office equipment. It is thus, contended that business activities or no business activities, the office equipments were to be used, even if partially, anyway. We have also
I TA N o. 2 6 0 5/ Ah d /2 0 1 5 Ad a ni En e r gy Lt d Vs . DC I T Ass e ss me n t Y ea r : 2 0 12 - 1 3 Page 2 of 2
perused the financial statements of the assessee which indicate a small level of operations. In these circumstances, the controversy which has been subject matter of consideration before the authorities below in fact ceases to be relevant and what really matters now is to see whether or not the assets, in respect of which depreciation was claimed, were in fact used, even if in a small measure and modest scale, in the course of business. Once it is found that the assets pertain to office use and the office has been used even for a short time, irrespective of whether trading operations or core business activities take place or not. We, therefore, accept the plea of the assessee in principle. The depreciation claimed before us is not in respect of machineries which have not been used at all. However, as this aspect of the matter was not taken before any of the authorities below, we also deem it fit and proper to remit the matter to the file of the Assessing Officer for limited verifications of factual plea embedded in the plea of the assessee. He will thus decide the matter in the light of our above observations and following the legal principle so laid down. While doing so, he will decide the matter afresh by way of a speaking order and after giving a fair reasonable opportunity to the assessee.” 5. We see no reason to take any other view of the matter than the view so taken by us. 6. Respectfully following the same, we remit the matter to the file of the Assessing Officer with the same direction. The observations and direction for the assessment year 2011-12 will apply mutatis mutandis in this case as well. 7. In the result, the appeal is allowed for statistical purposes. Pronounced in the open court today on the 12th September, 2018 Sd/- Sd/-
Mahavir Prasad Pramod Kumar (Judicial Member) (Accountant Member) Dated: 12th September, 2018 Bt* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) DR (6) Guard File By order True Copy Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad 1. Date of taking dictation: …order prepared as per 5 pages manuscripts of Hon’ble AM……11.09.2018…… 2. Date of typing & draft order placed before the Dictating Member: …11.09.2018………….. 3. Date on which the approved draft comes to the Sr. P.S./P.S.: ........12.09.2018........................ 4. Dt. on which the fair order is placed before the Dictating Member for Pronouncement: ...... 12.09.2018...... 5. Date on which the file goes to the Bench Clerk:...... 12.09.2018................. 6. Date on which the file goes to the Head Clerk: ..…………………... 7. The dt. on which the file goes to the Astt. Registrar for signature on the order: ......................... Date of despatch of the Order: ........................ 8.