Full News
ITAT following its Cordinate Bench’s decision allowed assessee’s appeal
ITAT following its Cordinate Bench’s decision allowed assessee’s appeal
In Gujarat Gas Financial Services Ltd’s case assessment was done. Thereafter AO issued notice u/s 148 (of Income Tax Act, 1961) for reopening assessment. AO disallowed business loss of Rs 74 lakhs and depreciation on assets of Rs. 2.1 crores. CIT(A) confirmed AO's action. ITAT following its Cordinate Bench’s decision allowed the assessee’s appeal.-500275
1. Gujarat Gas Financial Services Ltd was into leasing and hire purchase with trading in shares and other investments.
2. It filed its return at income of Rs 61 lakhs along with audit report, balance sheet and P & L account.
3. AO completed a regular assessment on 24-03-1999 determining the same income.
4. Thereafter AO formed reasons to believe that assessee's income liable to be assessed had escaped assessment, and issued notice u/s 148 (of Income Tax Act, 1961).
5. AO disallowed business loss claimed on sale of investments of Rs. 74 lakhs and depreciation on sold and leased back assets of Rs. 2.1 crores.
6. CIT(A) confirmed AO's action on legal ground and treated the loss on sale of investments as business loss instead of capital one and also allowed depreciation claim of Rs. 38 lakhs.
On appeal, the ITAT held as under:
7. The necessary corollary in case of our adjudication going in assessee's favour is that the impugned reassessment culminating in other issues in cross appeals would be held unsustainable as done by ld. co-ordinate bench.
8. The question framed hereinabove is decided in assessee's favour and against the Revenue.
9. We observe on the basis of these facts and evidence that the assessee has been able to prove genuineness of its depreciation claim qua the air pollution control equipment in question leased out to M/s Rajendra Steels Ltd, Kanpur.
Case Reference - The DCIT vs Gujarat Gas Financial Services Ltd.
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD "D" BENCH
Before: Shri Pramod Kumar, Accountant Member
and Shri S. S. Godara, Judicial Member
ITA No. 3465/Ahd/2004
(Assessment Year 1996-97)
×
