WADHAWAN RETAIL PVT.LTD.,MUMBAI vs. ACIT-CENTRAL CIRCLE-5(4), MUMBAI

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ITA 6925/MUM/2017Status: DisposedITAT Mumbai23 October 2020AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, following its previous decision, restored the issues of depreciation on goodwill and preliminary expenses written off to the Assessing Officer for fresh adjudication. The Assessing Officer was directed to decide the matter on merits after providing the assessee with an adequate opportunity to be heard.

What were the facts?

The assessee filed appeals against the orders of the CIT(A) for AYs 2010-11, 2011-12, and 2013-14. The issues in these appeals were identical to those in the assessee's own case for AY 2008-09.

What were the issues?

Whether depreciation on goodwill and preliminary expenses written off is allowable as a deduction. The issue was restored to the Assessing Officer for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 35D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: SHRI C.N. PRASAD, HONBLE & SHRI M. BALAGANESH, HONBLE

For Appellant: Shri Avdhi Shah
For Respondent: Shri V. Vinod Kumar
Hearing: 05.02.2020Pronounced: 23.10.2020

O R D E R PER C.N. PRASAD (JM) 1. These appeals are filed by the assessee against different orders of the Learned Commissioner of Income Tax (Appeals)–53, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 06.09.2017 for the Assessment Years 2010-11, 2011-12 and A.Y. 2013-14.

2 6925 & 6927/MUM/2017 (A.Ys: 2010-11, 2011-12 & 2013-14) M/s. Wadhawan Retail Pvt. Ltd., 2. Since the issues in all these appeals are identical these appeals are heard together and disposed off by this common order.

3.

At the outset, Learned Counsel for the assessee submitted that the issues in appeal are covered by the decision of the Tribunal in assessee’s own case for the A.Y. 2008-09 by order dated 04.01.2016 wherein the Tribunal in so far as the depreciation on good will and preliminary expenses written off are concerned the issues have been restored to the file Assessing Officer for fresh adjudication on merits. Copy of the order is placed on record.

4.

Ld. DR fairly submitted that these issues were restored to the file Assessing Officer for fresh adjudication.

5.

On hearing both the sides and perusing the order of the Tribunal we find that the Tribunal in ITA.No. 4725/Mum/2012 and 4809/Mum/2012 by order dated 04.01.2016 restored the issue of depreciation on good will and preliminary expenses written off claimed as deduction u/s. 35D of the Act to the file of the Assessing Officer for fresh adjudication. Respectfully following the said decision of the Tribunal we restore these issues to the file of the Assessing Officer who shall decide in accordance with the 3 6925 & 6927/MUM/2017 (A.Ys: 2010-11, 2011-12 & 2013-14) M/s. Wadhawan Retail Pvt. Ltd., directions given by the Tribunal for the A.Y. 2008-09 after providing adequate opportunity of being heard to the assessee.

6.

In the result, appeals of the assessee are allowed for statistical purpose.

7.

Before parting, we noticed that these appeals were heard on 05.02.2020 and the pronouncement is delayed due to lockdown in view of COVID-19 pandemic. The pronouncement is as per Rule 34(5) of Income Tax Appellate Tribunal Rules, 1963 and Hon'ble Bombay High Court decision vide orders dated 15.04.2020 and 15.06.2020 extending the time bound periods specified by Hon'ble High Court by removing the period under lockdown. This aspect was also dealt with in detail by the Mumbai Bench of the Tribunal in case of DCIT v. JSW Steel Vide order dated 14.05.2020 in ITA.No. 6264/Mum/2018.

Order pronounced on 23.10.2020 as per Rule 34(4) of ITAT Rules by placing the pronouncement list in the notice board.

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