GITA POWER & INFRASTRUCTURE PVT. LTD., CHENNAI V. ACIT, CENTRAL CIRCLE - 1 (1), CHENNAI

ITA 178/CHNY/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3180 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-10-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 24-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V RA VICHANDRAN
• Section: 143(3); 153A; 14A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ ITA NO.178/CHNY/2020 ( / ASSESSMENT YEAR: 2011-12) M/S.GITA P OWER & INFRASTRUCTURE PVT. LTD. NO.6, SARDAR PATEL ROAD, GUINDY CHENNAI- 600 021 / VS. ACIT - CC - 1(1) NUNGAMBAKKAM HIGH ROAD CHENNAI - 600034 ./ ./PAN/GIR NO. AADCG-4582-B ($ /APPELLANT ) : ('($ / RESPONDENT ) $/ APPELLANT BY : SHRI V.RAVICHANDRAN, FCA '($ / RESPONDENT BY : SHRI ARV SREENIVASAN, ADDL.CIT / DATE OF HEARING : 11/10/2021 / DATE OF PRONOUNCEMENT : 11/10/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2011- 12 ARISES OUT OF THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNAI [CIT(A)] DATED 28/11/2019 IN THE MATTER OF ASSESSMENT FRAMED BY LD. ASSESSING OFFICER [AO] U/S .143(3) R.W.S. 153A ON 30/12/2016. IN THIS APPEAL, THE ASSESSEE IS AGGR IEVED BY THE FACT THAT LOSSES AS DETERMINED IN THE ASSESSMENT ORDER HAVE N OT BEEN ALLOWED TO BE CARRIED FORWARD TO THE SUBSEQUENT YEARS. 2 2. THE MATERIAL FACTS ARE THAT AN ASSESSMENT WAS FR AMED AGAINST THE ASSESSEE U/S 143(3) R.W.S. 153A ON 30/12/2016. THE ASSESSEE CLAIMED BUSINESS LOSS OF RS.53.53 LACS IN THE ORIGINAL RETU RN OF INCOME WHICH WAS REDUCED TO RS.30.13 LACS IN RETURN FILED IN RES PONSE TO NOTICE U/S 153A. HOWEVER, IN THIS RETURN, THE ASSESSEE CLAIMED SHORT-TERM CAPITAL LOSSES OF RS.23.40 LACS. CONSEQUENT TO DISALLOWANCE U/S 14A AS COMPUTED BY LD. AO, RETURNED BUSINESS LOSS WAS REDU CED TO RS.16.05 LACS IN THE ASSESSMENT ORDER. HOWEVER, LD. AO DID N OT ALLOW THESE LOSSES TO BE CARRIED FORWARD IN SUBSEQUENT YEARS ON THE GROUND THAT RETURN U/S 153A WAS NOT FILED WITHIN THE TIME SPECI FIED IN THE NOTICE. 3. DURING APPELLATE PROCEEDINGS, THE ASSESSEE, DRAW ING ATTENTION TO THE STATUTORY PROVISIONS, SOUGH CARRY FORWARD OF TH ESE LOSSES. HOWEVER, LD. CIT(A) CONFIRMED THE STAND OF LD. AO IN TERMS O F DECISION OF HONBLE HIGH COURT OF CALCUTTA IN THE CASE OF SRIKANT MOHTA V/S CIT (2018; 95 TAXMANN.COM 224) . AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFO RE US. 4. WE FIND THAT NOTICE U/S 153A WAS ISSUED TO THE A SSESSEE ON 07/01/2015 REQUIRING THE ASSESSEE TO FILE THE RETUR N WITHIN 15 DAYS. THE ASSESSEE HAS FILED THE RETURN ON 15/02/2015 WHICH H AS LED LD. AO DENY THE CARRY FORWARD OF LOSSES. HOWEVER, IT COULD BE S EEN THAT THE BUSINESS LOSS OF RS.53.53 LACS WAS CLAIMED BY THE ASSESSEE I N THE ORIGINAL RETURN FILED ON 26/09/2011 WHICH WAS WELL WITHIN DUE DATE. AS PER THIS RETURN, THE ASSESSEE WAS ENTITLED TO CARRY FORWARD THESE LO SSES. IN THE RETURN FILED IN RESPONSE TO NOTICE U/S 153A, THE AMOUNT OF OVERALL LOSS REMAINS THE SAME. THE ONLY DIFFERENCE IS THAT THE LOSS HAS BEEN SPLIT AS BUSINESS LOSS AND SHORT TERM CAPITAL LOSS. THESE COMPUTATION S HAVE BEEN ACCEPTED BY LD. AO BARRING THE DISALLOWANCE OF 14A. THIS BEING SO, THE 3 LOWER AUTHORITIES, IN OUR OPINION, WE NOT JUSTIFIED IN DENYING THE CARRY FORWARD OF LOSSES AS CLAIMED BY THE ASSESSEE. WE OR DER SO. 5. THE APPEAL STAND ALLOWED IN TERMS OF OUR ABOVE O RDER. ORDER PRONOUNCED ON 11 TH OCTOBER, 2021. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER 4 CHENNAI ; DATED : 11/10/2021 TLN 46 / COPY OF THE ORDER FORWARDED TO : 1. $ / THE APPELLANT 2. '($ / THE RESPONDENT 3. ; ( ) / THE CIT(A) 4. ; / CIT CONCERNED 5. ' , , 4 / DR, ITAT, CHENNAI 6. @ / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , 4 / ITAT, CHENNAI