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TaxTMI 
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TaxTMI 
2017 (3) TMI 1337
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....the said Appeal preferred by the assessee and has quashed and set aside the order passed by the learned Commissioner in exercise of powers under Section 263 of the Income Tax Act (hereinafter referred to as "the Act"), the revenue has preferred the present Appeal with the following proposed question of law; "Whether on the facts and in the circumstances of the case, the ITAT was right in law in setting aside the order of the CIT and restore that of the AO, disregarding the applicability of the provisions of Section 263 of the IT Act to the fact of the case?" [2.0] The assessee filed the return of income for the Assessment Year 2009-10 declaring the total income of Rs. 889,61,66,980/-. The assessee claimed the depreciation of Rs. 57,31,18....
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....tten off shall be deducted from the cost of plant and machinery for depreciation. In the depreciation chart no such deduction was made from the WDV of plant and machinery. Further in Schedule 15 to P & L A/c, Rs. 1366.90 as stores and spares consumed. Thus it can be inferred that stores and spares are treated as revenue expenditure. Since the spares are treated as revenue expenditure the purchase cost would have already been debited to P & L A/c. The spares now becoming obsolete and being written off cannot again be allowed as a deduction as the amount would have already been debited to P & L A/c as purchases. So the amount of obsolete spares and other items written off should have been disallowed and added to the income of the assessee. Th....
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....it was submitted that the order of the Assessing Officer cannot be said to be prejudicial to the interest of the revenue, and therefore, it was requested to withdraw the notice under Section 263 of the Act. Learned Commissioner however set aside the assessment order on both the grounds and remanded the matter to the Assessing Officer in light of the observations made in the order. [2.3] Feeling aggrieved and dissatisfied with the order passed by the revisional authority in exercise of powers under Section 263 of the Act, the assessee preferred Appeal before the learned tribunal. By the impugned judgment and order the learned tribunal has allowed the said Appeal preferred by the assessee and has quashed and set aside the order passed by the....
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....t certain inquiry was not held /conducted by the Assessing Officer while accepting the assessee's claim of written off on obsolete spares and stores worked out at Rs..92,66,211/-, and therefore, the assessment order was found to be erroneous and prejudicial to the interest of the revenue and consequently when the learned Commissioner set aside the order of the Assessing Officer and remitted the matter to the Assessing Officer to re-frame the assessment, the same was not required to be interfered with by the learned tribunal. Making the above submissions, it is requested to admit /allow the present Appeal. [4.0] The present Appeal is vehemently opposed by Shri Manish J. Shah, learned advocate appearing on behalf of the assessee. It is subm....
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.... and stores and other items. It is submitted that therefore the ground on which the learned Commissioner set aside the order of assessment and remanded the matter to the Assessing Officer was beyond the scope and ambit of Section 263 of the Act, and therefore, the learned tribunal has rightly quashed and set aside the order passed by the revisional authority (Commissioner) under Section 263 of the Act. Making the above submissions, it is requested to dismiss the present Tax Appeal. [5.0] Heard the learned advocates appearing on behalf of the respective parties at length. At the outset, it is required to be noted that the scrutiny assessment under Section 143(3) of the Act was taken under suo motu revision by the learned Commissioner in ex....
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....umstances, the learned tribunal has rightly quashed and set aside the order passed by the learned Commissioner so far as the additional depreciation claimed by the assessee under Section 32(1)(iia) read with Section 32(1)(iia) of the Act. [5.2] Now so far as the order passed by the Assessing Officer allowing the assessee to debit Rs. 92,66,211/- on obsolete spares and stores and other items written off are concerned, learned Commissioner in exercise of the powers under Section 263 of the Act has set aside the order passed by the Assessing Officer by observing that the contents of the assessee need detailed examination, which was not done by the Assessing Officer at the time of the assessment proceedings. However, it is required to be noted....