Case Number: ITA 5661/DEL/2019
Appellant: Addi. CIT Spl. Range-3, New Delhi
Respondent: Delhi Financial Corporation, New Delhi
Assessment Year: 2014-15
Case Filed On: 2019-06-28
Order Type: Final Tribunal Order
Date of Order: 2019-09-30
Pronounced On: 2019-09-30
This case involves an appeal filed by the Addl. Commissioner of Income Tax, Special Range-3, New Delhi, against the order of the Commissioner of Income Tax (Appeals)-3, New Delhi, dated 02.05.2019. The appeal pertains to the assessment year 2014-15 and challenges the deletion of the disallowance of Rs. 1,35,85,30,780/- made by the Assessing Officer on account of depreciation claimed by Delhi Financial Corporation.
The appellant, Addl. CIT Spl. Range-3, New Delhi, contested the order passed by the CIT(A) which allowed the depreciation claim of Rs. 1,35,85,30,780/- made by the respondent, Delhi Financial Corporation, for the assessment year 2014-15. The Revenue sought to adjourn the appeal to file a paper book and place reliance on the case of North Karnataka Expressway Ltd. (51 Taxmann.com 214 [Bom]). However, the Tribunal found no reason to adjourn the appeal and proceeded to review the findings of the CIT(A).
The sole grievance of the Revenue is that the CIT(A) erred in deleting the disallowance of Rs. 1,35,85,30,780/- made by the Assessing Officer on account of depreciation claimed by the respondent. The Revenue contended that the depreciation claim was not allowable and sought to rely on similar cases to support their position.
The CIT(A) had allowed the appeal in favor of the respondent for the assessment year 2014-15, following the decision of the Hon’ble ITAT Delhi in the case of the respondent itself for the assessment year 2011-12, which was upheld by the Hon’ble Delhi High Court. The CIT(A) noted that the facts of the case remained unchanged from the earlier years, and thus, the principle of consistency warranted the allowance of the depreciation claim.
The Tribunal, comprising Accountant Member Shri N.K. Billaiya and Judicial Member Shri Kul Bharat, reviewed the findings of the CIT(A) and the submissions made by the Revenue. The Tribunal noted that the issue of depreciation claim had already been decided in favor of the respondent in the earlier years by both the ITAT and the Delhi High Court. The Tribunal found no reason to interfere with the findings of the CIT(A) and dismissed the ground raised by the Revenue.
The appeal filed by the Addl. CIT Spl. Range-3 was dismissed, and the order of the CIT(A) allowing the depreciation claim of Rs. 1,35,85,30,780/- for the assessment year 2014-15 was upheld. The Tribunal’s decision was based on the principle of consistency and the fact that the issue had been conclusively decided in the respondent’s favor in earlier years.
Order pronounced in the open court on 30th September 2019.
Signed by:
(H.S. SIDHU) JUDICIAL MEMBER
(PRASHANT MAHARISHI) ACCOUNTANT MEMBER
Date: 30th September 2019
Copy forwarded to:
// BY Order //
Assistant Registrar, ITAT New Delhi Benches, New Delhi
Addi. CIT Spl. Range-3 vs Delhi Financial Corporation – Depreciation Disallowance for AY 2014-15
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