Sangrah Warehouse Limited, Baroda V. DCIT, Circle 2(1)(1), Baroda

ITA 1744/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9183 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 25-09-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 17-07-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Keywords: Depreciation
• Section: 143(3); 201

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NOS. 1744 & 2850/AHD/2017 ( ASSESSMENT YEARS : 2013-14 & 2014-15) SANGRAH WAREHOUSE LIMITED 62, VISHWAS COLONY, OPP. SWAGAT RESTAURANT, JETALPUR ROAD, BARODA - 390007 / VS. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2(1)(1), AAYKAR BHAVAN, RACE COURSE CIRCLE, BARODA & INCOME TAX OFFICER WARD 2(1)(3), AAYKAR BHAVAN, RACE COURSE CIRCLE, BARODA ./ ./ PAN/GIR NO. : AAFCS4220C ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SMT. URVASHI SHODHAN, A.R. / RESPONDENT BY : SHRI L. P. JAIN, SR. D.R. DATE OF HEARING 25/09/2019 !'# / DATE OF PRONOUNCEMENT 04/10/2019 / O R D E R ITA NOS. 1744 & 2850/AHD/17 [SANGRAH WAREHOUSE LTD.] A.YS. 2013-14 & 2014-15 - 2 - PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTAN CE OF THE ASSESSEE AGAINST THE RESPECTIVE ORDERS OF THE COMMISSIONER O F INCOME TAX (APPEALS)-2, VADODARA (CIT(A) IN SHORT), DATED 01 .05.2017 & 22.09.2017 ARISING IN THE ASSESSMENT ORDERS DATED 23.03.2016 & 09.09.2016 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE I NCOME TAX ACT, 1961 (THE ACT) CONCERNING AYS. 2013-14 & 2014-15. 2. THE GRIEVANCES RAISED BEING COMMON, BOTH THE CAS ES WERE HEARD TOGETHER AND DISPOSED OF BY THE COMMON ORDER. 3. WE SHALL FIRST TAKE UP ASSESSEES APPEAL IN ITA NO. 1744/AHD/2017 CONCERNING AY 2013-14. ITA NO. 1744/AHD/2017-AY-2013-14 4. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE FOR AY 2013-14 READ AS UNDER: 1. THE LEARNED CIT(A) HAS ERRED IN NOT ALLOWING SE T OFF OF BUSINESS LOSS AGAINST CURRENT YEAR PROFIT WRONGLY INVOKING S ECTION 79 OF THE ACT. 2. THERE WAS NO CHANGE IN SHARE HOLDING PATTERN DUR ING THE PREVIOUS YEAR UNDER CONSIDERATION AND THEREFORE SEC TION 79 OF THE ACT IS NOT APPLICABLE TO THE ASSESSEE. 3. THE LEARNED CIT(A) HAS WRONGLY DISALLOWED CARRIE D FORWARD DEPRECIATION LOSS OF PREVIOUS YEARS WHERE RETURN OF INCOME WAS NOT FILED BEFORE DUE DATE. 5. WHEN THE MATTER WAS CALLED FOR HEARING, THE LEAR NED AR FOR THE ASSESSEE POINTED OUT THAT GROUND NO.1 IS GENERAL IN NATURE AND DOES NOT REQUIRE ANY SEPARATE ADJUDICATION. THE LEARNED AR FOR THE ASSESSEE FURTHER POINTED OUT THAT GROUND NO.3 OF THE ASSESSEES APPE AL APPEARS TO BE INCONSISTENT WITH THE EXPRESS POSITIVE FINDING OF T HE CIT(A) IN PARA 4.2 OF ITA NOS. 1744 & 2850/AHD/17 [SANGRAH WAREHOUSE LTD.] A.YS. 2013-14 & 2014-15 - 3 - ITS ORDER. IT WAS SUBMITTED THAT THE CIT(A) HAS ACT UALLY GRANTED RELIEF TOWARDS CARRY FORWARD OF DEPRECIATION LOSS AND THER EFORE, THE ASSESSEE IS NO LONGER AGGRIEVED BY THE ACTION OF THE CIT(A). IT W AS THUS FAIRLY SUBMITTED THAT GROUND NO.3 MAY BE TREATED AS INFRUCTUOUS. 6. ADVERTING TO GROUND NO.2 OF THE ASSESSEES APPEA L, THE LEARNED AR REITERATED ITS SUBMISSIONS PLACED BEFORE THE LOWER AUTHORITIES AND SUBMITTED THAT THE BUSINESS LOSS INCURRED IN ANY YEAR PRIOR T O THE PREVIOUS YEAR IN WHICH THE SHAREHOLDING HAS UNDERGONE CHANGE OUGHT T O HAVE BEEN ALLOWED AND EMBARGO PLACED IN SECTION 79 OF THE ACT OUGHT N OT TO HAVE BEEN APPLIED. 7. THE LEARNED DR, ON THE OTHER HAND, RELIED UPON T HE ORDER OF THE CIT(A). 8. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. IN VIEW OF THE AVERMENTS MADE ON BEHALF OF THE ASSESSEE, GROUND NO .3 IS DISMISSED AS NOT PRESSED BEING INFRUCTUOUS. WE ALSO DO NOT SEE ANY MERIT IN THE GRIEVANCE OF THE ASSESSEE FOR CARRY FORWARD OF BUSINESS LOSSE S IN VIEW OF THE ADMITTED POSITION THAT CHANGE IN SHAREHOLDING HAS TAKEN PLAC E AS CONTEMPLATED IN SECTION 79 OF THE ACT. THE CIT(A) HAS EXAMINED THE ISSUE IN PERSPECTIVE AND HAS CORRECTLY APPLIED THE LAW IN THIS REGARD. THE CIT(A) HAS CONCLUDED THAT THE CASE OF THE ASSESSEE IS HIT BY SECTION 79 OF THE ACT IN SO FAR AS BUSINESS LOSSES ARE CONCERNED. WE DO NOT SEE ANY I NFIRMITY IN THE CONCLUSION DRAWN BY THE CIT(A). 9. IN THE RESULT, APPEAL OF THE ASSESSEE FOR AY 201 3-14 IS DISMISSED. ITA NO. 2850/AHD/2017-AY-2014-15 10. THE ISSUES INVOLVED ARE IDENTICAL. THE CIT(A) HAS ADJUDICATED THE ISSUE FOLLOWING ITS ORDER PASSED IN AY 2013-14. IN PARITY WITH THE ITA NOS. 1744 & 2850/AHD/17 [SANGRAH WAREHOUSE LTD.] A.YS. 2013-14 & 2014-15 - 4 - CONCLUSION DRAWN IN AY 2013-14, APPEAL OF THE ASSES SEE FOR AY 2014-15 IS ALSO DISMISSED. 11. IN THE COMBINED RESULT, BOTH APPEALS FILED BY T HE ASSESSEE ARE DISMISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 04/10/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 04/10/2019