THE ACIT-4(1) , INDORE vs. PARVATI SWEETNERS AND POWER LTD, INDORE

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ITA 180/IND/2023Status: DisposedITAT Indore31 January 2024AY 2014-15Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)7 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 upheld the CIT(A)'s order, agreeing that the disallowance of depreciation was a debatable issue and therefore not rectifiable under Section 154. The revenue's appeal was found to be without merit.

What were the facts?

The Assessing Officer (AO) rectified an assessment order to disallow depreciation, claiming the assessee provided no evidence of fixed asset additions. The Commissioner (Appeals) deleted this disallowance, holding it was a debatable issue outside the scope of rectification.

What were the issues?

Whether the disallowance of depreciation, which was a debatable issue, could be rectified under Section 154 of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI

For Appellant: Shri Pankaj Shah, C. A. and Shri Soumya Bumb
For Respondent: Shri Ms.Simran Bhullar, CIT DR
Hearing: 31.01.2024Pronounced: 31.01.2014

आदेश / O R D E R

Per B.M. Biyani, A.M.:

1.

Feeling aggrieved by appeal-order dated 08.02.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”], which in turn arises out of rectification-order dated 31.03.2021 passed by learned DCIT/ACIT-4(1), Indore [“AO”] u/s 154 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2014-15, the revenue has filed this appeal.

2.

Heard the learned Representatives of both sides and perused the orders of lower-authorities carefully. For the relevant AY 2014-15 under Page 1 of 7

ACIT,4(1),Indore vs. Parvati Sweetners and Power Limited, Indore. AY 2014-15 consideration, the assessee’s case was selected under scrutiny and the AO issued statutory notices u/s 143(2)/142(1) from time to time which were duly complied by assessee. Ultimately, the AO passed assessment-order u/s 143(3) on 29.12.2016. Subsequently, the AO rectified the said assessment- order u/s 154 vide order dated 31.03.2021 whereby he disallowed depreciation of Rs. 6,32,96,126/-, which was allowed in scrutiny- assessment, on the premise that the assessee had not submitted any evidence of additions in fixed assets. Aggrieved, the assessee carried matter in first-appeal and argued that the impugned disallowance made by AO was not an apparent mistake; it is a debatable issue which is outside the ambit and scope of section 154. The Ld. CIT(A), after a careful consideration, accepted contention of assessee and deleted the disallowance made by AO.

Now, the revenue has come in next appeal assailing the order of CIT(A).

3.

At first, we extract the order of CIT(A) for an immediate reference:

“5. Decision I have gone through the grounds of appeal, statement of facts, submissions of the Appellant, order passed u/s 154 of the Act and have considered the facts and evidences on record.

ACIT,4(1),Indore vs. Parvati Sweetners and Power Limited, Indore. AY 2014-15 ACIT,4(1),Indore vs. Parvati Sweetners and Power Limited, Indore. AY 2014-15 ACIT,4(1),Indore vs. Parvati Sweetners and Power Limited, Indore. AY 2014-15 ACIT,4(1),Indore vs. Parvati Sweetners and Power Limited, Indore. AY 2014-15 ACIT,4(1),Indore vs. Parvati Sweetners and Power Limited, Indore. AY 2014-15

4.

Thus, the CIT(A) has held that the issue of depreciation taken up by AO for rectification was a debatable issue and hence outside the scope of section 154. Learned DR appearing for appellant/revenue has understood this legal point quickly and could not point out any mistake in the order of CIT(A). In that view of matter, we hardly find any mistake in the order of CIT(A) so as to warrant our interference. The same is therefore upheld and the revenue’s appeal is dismissed being devoid of any merit.

5.

Resultantly, this appeal is dismissed.

Order pronounced in open court immediately on conclusion of hearing and subsequently reduced in writing on the same day

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