Vodafone Essar Gujarat Ltd.,, ... vs Assessee on 29 January, 2010 New

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Vodafone Essar Gujarat Ltd.,, ... vs Assessee on 29 January, 2010

Income Tax Appellate Tribunal - Ahmedabad

Income Tax Appellate Tribunal - Ahmedabad

Vodafone Essar Gujarat Ltd.,, ... vs Assessee on 29 January, 2010

The AYIN THE INCOME_TAX APPELLATE TRIBUNAL "A" BENCH, AHMEDABAD

BEFORE SHRI H.L.KARWA,JM AND SHRI A.N.PAHUJA,AM

ITA No.1878/Ahd/2009

(Assessment Year : 2006-07)

A.C.I.T. Circle - 8, Vs. Vodafone Essar Gujarat Ltd. Vodafone House, Corporate Road,

4th Floor, Ajanta Coomercial Prahladnagar, off. S.G.Road, Centr,'A' Wing,Ashram Road, Ahmedabad. Ahmedabad. [PAN:AAACF1190P]

(Appellant) (Respondent)

ITA No.1361/Ahd/2009

(Assessment Year : 2006-07)

Vodafone Essar Gujarat Ltd. Vs. The A.C.I.T. Circle - 8, Ahmedabad Vodafone House, Corporate

Road,Prahladnagar, off.

S.G.Road,Ahmedabad.

(Appellant) (Respondent) Assessee by : Shri S.E.Dastur, with Shri S.N.Soparkar & Dhinal Shah, ARs.

Revenue by : Shri Rajeev Agarwal, DR

(आदे श)/ORDER

आदे

A.N.PAHUJA: These cross appeals by the Revenue and the assessee directed against an order dated 30.3.2009 of the ld. CIT (A)-XIV, Ahmedabad, raise the following grounds:

ITA No.1878/Ahd/2009[Revenue]

"1. The Ld.CIT(A) has erred in law and on facts in deleting the disallowance on account of sales promotion expenses amounting to Rs. 48,935/-.

2. The Ld.CIT(A) has erred in law and on facts in deleting the disallowance of claim for deduction u/s 80IA from revenue of sharing of cell site of Rs.2,75,30,602/-.

3. The Ld.CIT(A) has erred in law and on facts in deleting the addition to the book profit of Rs.9,52,20,000/-on a/c of provision for municipal taxes for the computation of MAT liability.

4. On the facts and in the circumstances of the case, the ld Commissioner of Income-tax (A)-XIV, Ahmedabad ought to have upheld the order of the Assessing Officer.

Indian Kanoon - http://indiankanoon.org/doc/158624758/1

Vodafone Essar Gujarat Ltd.,, ... vs Assessee on 29 January, 2010

2 ITA No.1878& 1361/Ahd/2009

5. It is therefore, prayed that the order of the learned Ld. Commissioner of Income Tax(A)-XIV, Ahmedabad may be set-aside and that of the Assessing Officer be restored."

ITA No.1361/Ahd/2009[Assessee] .:

"1. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming the finding of the Assistant Commissioner of Income Tax, Circle 8, Ahmedabad (hereinafter referred to as the 'AO') holding that the Appellant has started providing telecommunication services during the previous year relevant to the assessment year 1996-97.

1.1 The CIT(A) erred in stating that:

i. The appellant has started providing communications services as soon as it undertook the first activity of installation of sites and towers

ii. The Director's report for the year ending March 31, 1996 shows that site preparation was near completion

by

March 31, 1996

iii. The Appellant has completed 25 per cent of the activity which was required to launch commercial operations by March 31,1996.

1.2 On the facts and in the circumstances of the case, the CIT(A) erred in not appreciating that whether the business has commenced in A.Y. 1996-97 has been decided by the AO in that year and the AO in A.Y. 2006-07 cannot take a view contrary to the view taken in A.Y. 1996-97.

1.3 Without prejudice even it is presumed that the business is set up in A.Y. 1996-97, the CIT(A) erred in not appreciating that deduction under Section 80IA(4) is available only after the assessee starts providing telecommunication service which happened in January, 1997 relevant to the assessment year 1997-98

2. On the facts and in the circumstances of the case, the CIT(A) erred in confirming the action of he AO in holding that the Appellant's claim for deduction in AY 2006-07 would be governed by the provisions of section 80IA of the Act as it stood in AY 1996-97 and not the relevant AY i.e.AY 2006-07.

2.1. On the...
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