TaxTMI 
TaxTMI 
2023 (6) TMI 1421
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....id and not sustainable in law. 2. That on the facts and in the circumstances of the case and law, the Ld. Pr. CIT grossly erred in passing the order under section 263 even though the assessment order under section 143(3) dated 03.03.2021 passed by the Assessing Officer (AO) was neither erroneous nor prejudicial to the interest of the Revenue. 3. For that on the facts and in the circumstances of the case and law, the Principal CIT without considering the elaborate submissions with evidence of the assessee filed during the hearing u/s 263 on the allowability of depreciation on Equipment Under Lease Finance was not justified in setting aside the assessment order on the issue and restoring it to the file of the Assessing Officer for fresh adjudication. 4. For that on the fact and in the circumstances of the case and law, when the Assessing Officer examined the allowability of depreciation on Equipment Under Finance Lease and allowed the same in the assessment which in the opinion of the PCIT is erroneous, then he was not justified in restoring the issue to the assessing Officer for a fresh adjudication without himself conducting a further enquiry to verify an....
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.... assessment order erroneous insofar as it is prejudicial to the interest of revenue. 4.3. Ld. Pr. CIT thus, issued a show cause notice u/s. 263 of the Act dated 15.03.2023 invoking the revisionary proceeding. Assessee made a detailed submission in response to the show cause notice, explaining its claim which did not find favour with the Ld. Pr. CIT who concluded the revisionary proceeding and set aside the assessment order to the file of AO for fresh adjudication. Aggrieved, assessee is in appeal before the Tribunal. 5. Before us, Ld. Counsel for the assessee has placed on record a paper book containing 174 pages. According to the Ld. Counsel, assessee had entered into an arrangement with a company called Ennore Tank Terminal Private Limited (ETTPL) for the FY 2012-13 to construct two insulated pipelines to handle the products. Under the agreement, specific pipelines are constructed that are used exclusively to handle the products of the assessee only. The ownership of the pipeline is with ETTPL. Assessee has voluntarily offered to be a committed user of the said facility for a fixed tenure unequivocally waiving any right of termination of the agreement during the fixed....
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....t and under the Act as well as amortization of lease charges depicted as "Throughput Charges". The said computation of total income as reproduced for ease of reference: 5.3. Ld. Counsel thus, asserted that the observation of Ld. Pr. CIT that the amount of Rs. 3.09 Crores has not been debited in the P&L Account is not correct which is verifiable from the audited financial statements and its treatment in the computation of total income, returned by the assessee. Ld. Counsel stated that different nomenclature used by the assessee in its accounting and in computation of total income should not lead to arrive at the adverse conclusion drawn by the Ld. Pr. CIT that the assessment order is erroneous insofar as prejudicial to the interest of revenue. According to him, what is essential is to determine if the assessee is entitled to a particular deduction or not will depend upon the provisions of the Act. Existence or absence of entries in the books of account will not be decisive or conclusive for the same as held by the Hon'ble Supreme Court in the case of Kedarnath Jute Manufacturing Co. Ltd. (1971) 82 ITR 313 (SC). 5.4. Ld. Counsel also referred to a fact that two noti....
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....see. The Ld. Counsel has taken us through the audited financial statement which includes statement of P&L and demonstrated charging of depreciation and amortization, both on tangible assets and intangible assets which includes equipment under lease. Further, the charge of depreciation and amortization which has been adjusted while computing the income under the head "Profits and Gains of business or profession" in accordance with the provisions of the Act has also been substantiated by the Ld. Counsel. 7.1. The relevant disclosures made by the assessee in its audited financial statements are reproduced as under: 7.2. From the verification of the above disclosure and computation, we find that the very premise assumed by Ld. Pr. CIT does not hold good and thus, when the foundation itself collapses the super-structure falls. We find that in the present facts and circumstances, the legal maxim 'sublato fundamento cadit opus' is applicable, meaning thereby - 'a foundation being removed, the superstructure falls'. Once the basis of a proceeding is gone, the action taken thereon would fall to the ground. Thus, in the absence of such foundation, exercise of a suo motu pow....
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....1,012,000,000 2M6) 83,79,408 4,56,36,438 Document 2 INDIANOIL PETRONAS PRIVATE LIMITED Particulars -REVENUE- Revenue Prom Cowrations T EXPENSES 21 23 " 24 00 of goods 26 27 Excise duty Стркува Пелла Парапа Depreciation and am T ba Тим преп Profit before- 1 Так охрана: Cument T R 20 ACCOUNTS Statement of Profit and Loss for the year ended March 31, 2017 (Rs. Lak | For the year ended March 31, 2013). For the year ended Horch H.2018 V Profit for the period (- VI Other Comprehensive Atems that will not be reclassifed to profit or loss Red) ntive income for the period (+ 22244 In tenes of our report altached For D&B LLP Channel Assuntas Abhi Bandyopadhyay Pr Place: Kolkata May 2017 YKS Whisk V #1 Hasa Perba Then analar Dance Humer G Director 3436345 1834 AT 212.27 1.0/2 11619 A 38.00 14.4 2126 1100482 • Бирата ЕлективоÑти ....