2009 (11) TMI 955 - AT - Income Tax

Summary

Issues involved: Appeal against the order of the ld.CIT(Appeals)-II, Baroda, dated 07.07.2004 in Appeal No.CABII/ 427/2003-2004.

Issue 1: Status of the Assessee as AOP

The Assessee appealed against the order of the Learned Assessing Officer who assessed the status of the assessee as AOP on a protective basis. The Tribunal found that the assessee's income was not accepted by the revenue, and the income was assessed only on a protective basis. The Tribunal held that the assessee had valid reasons to be aggrieved by such an order and had the right to file an appeal. The Tribunal set aside the order of the Learned Commissioner of Income Tax(Appeals) and remanded the matter for fresh adjudication on merits. The appeal was allowed for statistical purposes.

Issue 2: Disallowance of Depreciation Claim

The Learned Commissioner of Income Tax(Appeals) disallowed the claim of depreciation amounting to Rs. 10,44,586 on the assets of the company, M/s. Market Creators Ltd. The Tribunal noted that the joint venture agreement did not transfer ownership of assets to the AOP, and thus, the AOP was not entitled to depreciation. The Tribunal found that the issue of depreciation was not consequential to the decision on the first ground of appeal. As no material was presented to challenge the findings of the Learned Commissioner of Income Tax(Appeals), the Tribunal dismissed this ground of appeal.

Issue 3: General Ground of Appeal

The third ground of appeal was of a general nature and did not require separate adjudication by the Tribunal. The appeal was partly allowed for statistical purposes.