DCIT, BK. Circle, Palanpur V. M/s. Banaskantha District Oil Seeds Growers Union Ltd., Palanpur

ITA 1674/AHD/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6419 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 06-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 143(3); 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE DCIT, B.K. CIRCLE, PALANPUR (APPELLANT) VS M/S. BANASKANTHA DIST. OIL SEEDS GROWERS UNION LTD. OPP. STATE BANK OF INDIA, OLD GUNJ BAZAR ROAD, PALANPUR PAN: AAAAS1902L (RESPONDENT) REVENUE BY : S H RI MUDIT NAG PAL , SR. D . R. ASSESSEE BY: SHRI SULABH PADSHAH, A.R. DATE OF HEARING : 30 - 01 - 2 019 DATE OF PRONOUNCEMENT : 13 - 02 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOU NTANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2013 - 14 , ARI SES FROM ORDER OF THE CIT(A) - 4, AHMEDABAD DATED 07 - 04 - 2 017 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 1674 / A HD/20 17 A SS ESSMENT YEAR 2013 - 14 I.T.A NO. 167 4 /AHD/20 17 A.Y. 2013 - 14 PAGE NO D CIT VS. M/S. BANASKANTHA DIST. OIL SEEDS GROWERS UNION LTD. 2 2. THE SOLITARY GROUND OF APPEAL OF THE REVENUE IS AGAINST THE ORDER OF LD. CIT(A) IN ALLOWING THE UNABSORBED DEPRECIATION CLAIM OF RS. 41 , 27 , 25 , 500/ - PERTAINING TO ASSESSMENT YEAR 2000 - 01 BEYOND 8 YEARS AS PER PROVISIONS O F SECTION 32(2) OF THE ACT. THE ASSESSEE HAS FILED RETURN OF INCOME ON 29 TH OCT OBER, 2013 DECLARING TOTAL INCOME AT RS. NIL AFTER SETTING OF F OF BROUGHT FORWARD BUSINESS LOSSES TO THE EXTENT OF PROFIT AND GAIN FROM BUSINESS FOR THE YEAR UNDER CONSIDERATION . THE ASSESSMENT U/S. 143(3) OF THE ACT WAS COMPLETED ON 22 ND MARCH, 2016 AND THE ASSESSING OFFICER HA D DISALLOWED THE CLAIM OF THE ASSESSEE FOR CARRY FORWARD OF UNABSORBED DEPRECIATION OF RS. 41 , 27 , 25 , 500/ - PERTAINING TO ASSESSMENT YEAR 2000 - 01 AND EARLIER YEARS. 3. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE L D. CIT(A) HAS ALLOWED THE APPEAL OF THE ASSESSEE AFTER FOLLOWING THE DECISION OF HON BLE GUJARAT HIGH COURT OF GUJARAT IN THE CASE OF GENERAL MOTORS INDIA PVT. LTD. VS. DCIT (304 ITR 244) (2012). 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MAT ERIAL ON RECORD CAREFULLY. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US THE LD. COUNSEL HAS BROUGHT TO OUR NOTICE THAT C O - ORDINATE BENCH OF THE ITAT IN THE CASE OF THE ASSESSEE ITSELF VIDE ITA NO. 1993/AHD/2016 H AS ADJUDICATED THE IDENTICAL ISS UE O N SIMILAR FACTS IN FAVOUR OF THE ASSESSEE. WITH THE ASSISTANCE OF LD. COUNSEL WE HAVE GONE THROUGH THE AFORESAID DECISION OF THE CO - ORDINATE BE NCH. RELEVANT PART OF DECISION IS REPRODUCED AS UNDER: - 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON MATERIAL CAREFULLY. WE HAVE NOTICED THAT THE CO - ORDINATE BENCH OF ITAT AHMEDABAD VIDE ITA NO. 2393/AHD/2013 DATED 03 - 05 - 2017 IN THE CASE OF GUJARAT LEASE FINANCE LTD HAS DECIDED THE IDENTICAL ISSUE IN FAVOUR OF ASSESSEE. THE PART OF THE JUDICIAL FINDINGS AND THE PRINCIPLES LAID DOWN BY THE HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF GENERAL MOTORS INDIA(P) LTD ARE REPRODUCED HERE AS UNDER : - I.T.A NO. 167 4 /AHD/20 17 A.Y. 2013 - 14 PAGE NO D CIT VS. M/S. BANASKANTHA DIST. OIL SEEDS GROWERS UNION LTD. 3 WE ARE OF THE CONSIDERED OPINION THAT ANY UNABSORBED DEPRECIATION AVAILABLE TO AN ASSES SEE ON 1ST DAY OF APRIL 2002 (A.Y. 2002 - 03) WILL BE DEALT WITH IN ACCORDANCE WITH THE PROVISIONS OF SECTION 32(2) AS AMENDED BY FINANCE ACT, 2001. AND ONCE THE CIRCULAR NO. 14 OF 2001 CLARIFIED THAT THE RESTRICTION OF 8 YEARS FOR CARRY FORWARD AND SET OFF OF UNABSORBED DEPRECIATION HAD BEEN DISPENSED WITH, THE UNABSORBED DEPRECIATION FROM A.Y. 1997 - 98 UPTO THE A.Y. 2001 - 02 GOT CARRIED FORWARD TO THE ASSESSMENT YEAR 2002 - 03 AND BECAME PART THEREOF, IT CAME TO BE GOVERNED BY THE PROVISIONS OF SECTION 32(2) AS AMENDED BY FINANCE ACT, 2001 AND WERE AVAILABLE FOR CARRY FORWARD AND SET OFF AGAINST THE PROFITS AND GAINS OF SUBSEQUENT YEARS, WITHOUT ANY LIMIT WHATSOEVER. THE RELEVANT PART OF THE DECISION OF THE CO - ORDINATE BENCH OF THE ITAT DECIDED IN THE CASE OF GUJARAT LEASE FINANCE LTD. VIDE ITA NO. 2393/AHD/2013 DATED 03/05/2017 IS REPRODUCED AS HEREUNDER: - 6. WE HAVE HEARD THE RIVAL CONTENTIONS. WE HAVE ALSO PERUSED THE JUDICIAL PRONOUNCEMENT DELIVERED BY THE HON BLE HIGH COURT OF GUJARAT IN THE CASE OF GEN ERAL MOTORS INDIA (P.) LTD VS. DCIT (2012) 25 TAXMANN.COM WHICH WAS ELABORATED IN DETAIL BY THE LD. CIT(A) IN HIS ORDER AS SUPRA IN THIS ORDER. WE HAVE ALSO PERUSED THE JUDICIAL PRONOUNCEMENT OF HON BLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. GUJARAT TH EMIS BIOSYN LTD. [2014] 44 TAXMANN. COM 204 (GUJARAT) IN WHICH AFTER CONSIDERING THE JUDGMENT GIVEN IN GENERAL MOTORS INDIA (P) LTD, IT WAS HELD THAT CARRY FORWARD OF UNABSORBED DEPRECIATION CONCERNING IMPUGNED ASSESSMENT YEARS COULD BE SET OFF IN SUBSEQUE NT YEARS WITHOUT ANY SET TIME LIMIT. IN VIEW OF THE ABOVE JUDICIAL PRONOUNCEMENT ON THE ISSUE AND THE ELABORATE FINDINGS OF THE LD. CIT(A), WE DO NOT FIND ANY REASON TO INTERFERE IN THE DECISION OF THE LD. CIT(A). RESPECTFULLY FOLLOWING THE DECISION OF THE CO - ORDINATE BENCH AS SUPRA, WE DO NOT FIND ANY ERROR IN THE FINDING OF LD. CIT(A), THEREFORE, THE APPEAL OF THE REVENUE IS DISMISSED. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. 5. RESPECTFULLY FOLLOWING THE DECISION OF THE CO - ORD INATE BENCH AS SUPRA, WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF LD. CIT(A), THEREFORE, THE APPEAL OF THE REVENUE IS DISMISSED. 6. IN THE RE SULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 13 - 02 - 2 01 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 13 /02 /2019 I.T.A NO. 167 4 /AHD/20 17 A.Y. 2013 - 14 PAGE NO D CIT VS. M/S. BANASKANTHA DIST. OIL SEEDS GROWERS UNION LTD. 4 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,