The Surat District Co.Op.Spinning Mills Ltd., Surat V. The Dy.CIT.,Circle-9, Surat

ITA 1642/AHD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0140 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2004-2005
• Appeal Filed On: 18-05-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUDHANSHU S JHA
• Assessee Lawyers: M K PATEL
• Keywords: Business income; Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER DATE OF HEARING :06/08/2010 DRAFTED ON: 06/08 /2010 ITA NO.1642/AHD/2010 ASSESSMENT YEAR : 2004-05 THE SURAT DIST.CO-OP. SPINNING MILLS LTD. RU BHAVAN LALDARWAJA, SURAT VS. THE ACIT CIRCLE-9 SURAT PAN/GIR NO. : AAAAT 3001 B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI M.K.PATEL, A.R. RESPONDENT BY: SHRI SUDHANSHU S.JHA, D.R. O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE ASSESSEE W HICH HAS EMANATED FROM THE ORDER OF THE LEARNED CIT(APPEALS) -V, SURAT DATED 10/02/2010 PASSED FOR ASSESSMENT YEAR 2004-05. THE APPELLANT HAS RAISED THE FOLLOWING SUBSTANTIVE GROUND:- THAT ON FACTS AND IN LAW, THE LEARNED CIT(A) HAS GR IEVOUSLY ERRED IN CONFIRMING THE DISALLOWANCE OF CLAIM OF SET OFF AND CARRY FORWARD OF BUSINESS LOSS OF RS.6,34,03,561/- AND RS .1,90,34,752/- RESPECTFULLY. 2. FROM THE SIDE OF THE APPELLANT, SHRI M.K.PATEL, LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE APPEARED AND FROM THE SIDE OF THE REVENUE SHRI SUDHANSHU S.JHA, LEARNED DEPARTMEN TAL ITA NO.1642/AHD /2010 THE SURAT DIST.CO-OP.SPINNING MILLS LTD.VS. ACIT ASST.YEAR 2004-05 - 2 - REPRESENTATIVE APPEARED. AT THE OUTSET, THE LEARN ED AUTHORISED REPRESENTATIVE OF THE ASSESSEE HAS FAIRLY STATED TH AT IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2006-07 THIS ISSUE HAS ALR EADY BEEN DECIDED BY THE RESPECTED CO-ORDINATE BENCH D AHMEDABAD IN IT A NO.1396/AHD/2009 VIDE ORDER DATED 01/07/2009 IN PAR AGRAPH NOS.4 & 6, IT WAS HELD AS UNDER:- 4. THE ASSESSEE IS NOW IN APPEAL AGAINST THE AFO RESAID FINDINGS OF THE LEARNED CIT(A). AT THE OUTSET, THE LEARNED AR ON BEHALF OF THE ASSESSEE WHILE INVITING OUR ATTENTION TO A DEC ISION DATED 17-2- 2009 OF ITAT IN ITA NO.3381/AHD/2008 FOR ASSESSMENT YEAR 2005- 06 SUBMITTED THAT SIMILAR CLAIM FOR SET OFF OF LOSS FROM RETRENCHMENT COMPENSATION AGAINST INCOME FROM CAPIT AL GAINS WAS REJECTED BY THE ITAT. AS REGARDS CLAIM FOR4 DEDUC TION OF RETRENCHMENT COMPENSATION AS BUSINESS EXPENDITURE, THE LEARNED AR REITERATED THEIR SUBMISSIONS BEFORE THE LEARNED CIT(A). ON THE OTHER HAND, THE LEARNED DR SUPPORTED THE FINDIN GS OF THE LEARNED CIT(A). .. 6. AS REGARDS GROUND NOS.2 & 3 R4ELATING TO CLAIM FOR SET OFF OF CURRENT LOSS AND EARLIER YEARS LOSS AGAINST INC OME FROM CAPITAL GAINS IN THE CURRENT YEAR, THE ITAT IN THEIR AFORES AID DECISION DATED 17-2-2009 FOR THE AY 2005-06 HELD AS UNDER: 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE AGREE WITH THE FINDINGS GI VEN BY THE CIT(A) THAT AS PER THE PROVISIONS OF SECTION 72(1), BUSINESS LOSS OTHER THAN LOSS SPECULATION BUSINESS CAN BE SET OFF AGAINST ANY HEAD OF INCOME IN THE YEAR IN WHICH IT IS INCURRED AND THE AMOUNT OF SUCH BUSINESS LOSS WHICH CANNOT BE SET OFF, CAN BE CARRIED FORWARD FOR BEING SET OFF IN THE SUBSEQUENT YEARS. HOWEVER, IN THE SUBSEQUENT YEAR, SUCH CARRIED FORWARD BUSINESS LOSS IS ALLOWED TO BE SET OFF ONLY AGAINST BUSINESS INCOME OF THE SAME BUSINESS OR OF ANY OTHER BUSINESS BUT NOT AGAINST I NCOME UNDER ANY OTHER HEAD. WE, THEREFORE, DO NOT FIND ANY IN FIRMITY IN THE ITA NO.1642/AHD /2010 THE SURAT DIST.CO-OP.SPINNING MILLS LTD.VS. ACIT ASST.YEAR 2004-05 - 3 - ORDER OF THE CIT(A) AND UPHOLD HIS ORDER IN THIS RE GARD. THUS, THE GROUND RAISED BY THE ASSESSEE STANDS DISMISSED. 3. ONCE THE CO-ORDINATE BENCH HAS TAKEN A VIEW IN F AVOUR OF THE REVENUE, THEREFORE, FOR THIS YEAR AS WELL WE FIND N O FORCE IN THIS GROUND, HENCE, DISMISSED. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 19/ 08 /2010. SD/- SD/- ( A.N.PAHUJA) ( MUK UL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD; DATED 19 / 08 /2010 T.C. NAIR, SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE DEPARTMENT. 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-V, SURAT 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD