2009 (4) TMI 67 - HC - Income Tax

High Court quashes ITAT orders, remands for action, emphasizes Income Tax Act.

Titanor Components Ltd. Versus Commissioner of Income Tax

The High Court of Bombay allowed the appeal, quashed the ITAT's orders, and remanded the matter back to the ITAT Goa for further action. The Court ... Depreciation - Tribunal holding that the appellant was entitled to depreciation on the assets acquired based on the value placed in the surveyors report and not on the actual cost incurred for acquisition(as contended by assessee) – no reason given by tribunal - it appropriate to remand the matter to the ITAT, before whom declaration u/s 158A was filed by the appellant with direction to admit the claim of assessee in the said declaration and to proceed further as per section 158A(5) after the Hon’ble Delhi HC adjudicates the appeals pending before it - orders of ITAT are quashed The High Court of Bombay delivered a judgment in 2009 regarding an appeal by an assessee concerning the question of law of depreciation on assets acquired from M/s. Western India Match Company Ltd. The appellant company claimed depreciation based on actual costs incurred for acquisition, while the Department relied on a surveyor's report for valuation. The Income Tax Appellate Tribunal upheld the Department's decision, leading to appeals before the ITAT at Goa. The ITAT Goa upheld the Department's orders, prompting the appellant to challenge these decisions. The Court found that the ITAT failed to apply Section 158A of the Income Tax Act, which aims to avoid unnecessary litigation. The Court remanded the matter to the ITAT Goa, directing it to admit the appellant's claim and await the Delhi High Court's decision on similar appeals. The Court allowed the appeal, quashed the ITAT's orders, and restored the appeals back to the ITAT for further action. No costs were awarded.