M/s. Uttam Fine Tex Pvt. Ltd., Surat V. The ACIT., Cent.Circle-3, Surat

ITA 1176/AHD/2006

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8860 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-03-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 10-05-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOVIND SINGHAL
• Assessee Lawyers: HARDIK BORA
• Keywords: Assessment record; Set aside
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : A BENCH : A HMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA, J.M. & HON'BLE SH RI A.N. PAHUJA, A.M.) I.T.A. NO. 1176/AHD./2006 ASSESSMENT YEAR : 2002-2003 M/S. UTTAM FINE TEX PVT. LTD., SURAT -VS.- ASS ISTANT COMMISSIONER OF INCOME TAX, (PAN : AAACN 7728 F) CENTRAL CIRCLE-3, SURAT (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI HARDIK BORA, C. A. RESPONDENT BY : SHRI GOVIND SINGHAL, S R. D.R. O R D E R PER SHRI T.K. SHARMA, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER DATED 15.02.2006 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-II, AHMEDABAD F OR THE ASSESSMENT YEAR 2002-03 CONFIRMING THE ACTION OF ASSESSING OFFICER REJECTIN G THE APPLICATION UNDER SECTION 154 OF THE INCOME TAX ACT, 1961. 2. AT THE TIME OF HEARING, ON BEHALF OF ASSESSEE SH RI HARDIK BORA APPEARED AND CONTENDED THAT THE ASSESSEE FILED AN APPLICATION UNDER SECTIO N 154 DATED 16.08.2005 CLAIMING SET OFF OF THE CARRY FORWARD LOSS FOR THE ASSESSMENT YEAR 2002-03. THE SAID APPLICATION IS REJECTED BY THE A.O. FOR THE DETAILED REASONS GIVEN IN HIS ORDER DATED 2 0.10.2005, WHICH ARE AS UNDER :- 2. ON VERIFICATION IT IS SEEN THAT YOU HAVE CLAIME D CARRY FORWARD LOSS OF RS.2,83,393/- FOR A.Y. 1992-93 AS PER APPEA L EFFECT ORDER. THIS FACT IS INCORRECT. AS THE APPEAL EFFECT ORDER DTD. 13.09.1999, THE ACTUAL CARRY FORWARD LOSS COMES TO RS.23,589/- AND NOT RS. 2,83,393/- AS CLAIMED BY YOU. IN VIEW OF THIS, THERE IS EXCESS CA RRY FORWARD OF LOSS OF RS.2,59,804/-. THEREFORE, IN THE ASSESSMENT ORDER F OR A.Y. 2002-03, YOU ARE NOT ENTITLED FOR ANY FURTHER CARRY FORWARD OF L OSS AS CLAIMED BY YOU. YOUR CLAIM FOR CARRY FORWARD OF LOSS OF RS.1,65,000 /- FOR A.Y. 96-97 GOT ADJUSTED AGAINST THE EXCESS CARRY FORWARD OF LOSS C LAIM OF RS.2,59,804/-, AS DISCUSSED ABOVE. IN VIEW OF THIS POSITION, NO FU RTHER ORDER REQUIRES TO BE PASSED FOR CARRY FORWARD OF THE LOSS. 2 ITA NO. 1176/AHD/2006 2.1. THE LD. COUNSEL OF THE ASSESSEE FURTHER SUBMIT TED THAT ON APPEAL, IN THE IMPUGNED ORDER, THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) UPH ELD THE ACTION OF ASSESSING OFFICER WITHOUT VERIFYING THE ASSESSMENT RECORD. HE SUBMITT ED THAT THERE IS A CLEAR MISTAKE APPARENT FROM THE RECORD, THEREFORE, THE A.O. BE DIRECTED TO RECT IFY THE SAME. 3. ON THE OTHER HAND, SHRI GOVIND SINGHAL, SR. D.R. APPEARING ON BEHALF OF THE REVENUE CONTENDED THAT NO DETAILS WERE FURNISHED BY THE ASS ESSEE, THEREFORE, THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) WAS HAVING NO OPTION BUT TO UPHELD THE ACTION OF A.O. 4. HAVING HEARD BOTH THE SIDES, WE HAVE CAREFULLY G ONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT IN THE ORDER UN DER SECTION 154 DATED 20.10.2005, THE A.O. HAS HELD THAT CARRY FORWARD LOSS COMES TO RS.23,589/-. NO DETAILS OF THIS CARRY FORWARD LOSS WERE FURNISHED TO THE ASSESSEE. AT THE SAME TIME, THE AS SESSEE HAS NOT GIVEN PROPER CHART COMPUTING HOW IT IS ENTITLED TO CARRY FORWARD LOSS OF RS.2,83 ,393/-. IN VIEW OF THIS, WE SET ASIDE THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS) AND RES TORE THE MATTER BACK TO THE FILE OF A.O. WITH THE DIRECTION THAT (I) THE A.O. WILL GIVE THE WORKING OF CARRY FORWARD LOSS OF RS.2,83,393/- AND (II) THE ASSESSEE WILL ALSO GIVE COMPLETE CHART SHOWING HOW HE WORKS OUT THE CARRY FORWARD LOSS OF RS.2,83,393/-. THE A.O. WILL VERIFY BOTH TH E DETAILS, DISCUSS THE SAME WITH THE ASSESSEE AND ALLOW THE CARRY FORWARD LOSS OF EARLIER YEAR IN ACCORDANCE WITH LAW. 5. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL OF THE ASSESSEE IS TREATED AS ALLOWED. THE ORDER WAS PRONOUNCED IN THE COURT ON 05.03.201 0 SD/- SD/- (A.N. PAHUJA) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 05 / 03 / 2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT. 3) CIT(A) CONCERNED, (4) CIT CONCERNED, (5) D.R., ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AHMEDABAD LAHA/SR.P.S.