DCIT, CHENNAI V. M/s. Southern Petrochemical Industries Corporation Ltd., CHENNAI

ITA 1649/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4861 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-06-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 05-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P B SEKARAN
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Depreciation; Unabsorbed depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH B CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER I.T.A.NO. 1649/MDS/2010 ASSESSMENT YEAR : 2000-01 THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE-V(1), CHENNAI. VS. M/S. SOUTHERN PETROCHEMICAL INDUSTRIES CORPORATION LTD., SPIC HOUSE, 88,MOUNT ROAD, GUINDY, CHENNAI 32. PAN AAACS 4668 K (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI P.B.SEKARAN, CIT-DR RESPONDENT BY : SHRI R.VIJAYARAGHAVAN O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2000-01. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-V , AT CHENNAI ITA 1649/10 :- 2 -: DATED 20.7.2010 AND ARISES OUT OF THE ORDER OF THE ASSESSING AUTHORITY PASSED UNDER SEC.154 OF THE INCOME-TAX AC T, 1961. 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL IS THAT THE COMMISSIONER OF INCOME-TAX (APPEALS) HAS E RRED IN ALLOWING THE ASSESSEE TO SET OFF OF BROUGHT FORWARD UNABSORBED BUSINESS LOSSES AGAINST THE CURRENT YEARS SHORT TE RM CAPITAL GAINS. THIS ISSUE WAS CONSIDERED BY THE ITAT, CHEN NAI B BENCH IN THE CASE OF INCOME-TAX OFFICER VS. M/S. RPIL SI GNALLYING SYSTEMS LTD. IN I.T.A.NO.383/MDS/2006 THROUGH THEIR ORDER DATED 25.4.2008. THIS ORDER OF THE TRIBUNAL HAS BEEN UPH ELD BY THE HON'BLE MADRAS HIGH COURT IN THE CASE OF COMMISSIONE R OF INCOME-TAX VS. RPIL SIGNALLING SYSTEMS LTD. (328 IT R 283) WHERE THE HON'BLE HIGH COURT HAS HELD THAT THE UNABSORBED DEPRECIATION BROUGHT FORWARD COULD BE SET OFF AGAINST THE TAXABL E BUSINESS PROFIT OR INCOME UNDER ANY OTHER HEAD FOR THE FOLLO WING EIGHT ASSESSMENT YEARS. 3. IN VIEW OF THE ABOVE, WE FIND THAT THIS APPEAL F ILED BY THE REVENUE IS LIABLE TO BE DISMISSED. ITA 1649/10 :- 3 -: ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING, ON THURSDAY, THE 16 TH DAY OF JUNE, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 16 TH JUNE, 2011 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR