S&S Industries and Enterprises Limited, CHENNAI V. ACIT, CHENNAI

ITA 1808/CHNY/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57890 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 09-05-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 25-10-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR YOGESH K AMAT SR
• Assessee Lawyers: R SU BRAMANIAN
• Keywords: Business income; Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI (BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER AND SHRI V.DURGA RAO, JUDICIAL MEMBER ) .. I.T.A. NO.1808/MDS/2010 ASSESSMENT YEAR : 2003-04 M/S.S&S INDUSTRIES AND ENTERPRISES LIMITED., 204,SIDCO AIEMA TOWER, FIRST MAIN ROAD, AMBATTUR INDUSTRIAL ESTATE, CHENNAI 600 058. PAN : ASSCS 5108 G (APPELLANT) V. ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE V(1), AAYAKAR BHAVAN, NEW BLOCK,7 TH FLOOR, CHENNAI 600 034. (RESPONDENT) APPELLANT BY : SHRI R.SUBRAMANIAN C.A. RESPONDENT BY : DR.YOGESH K AMAT, SR.A.R. DATE OF HEARING : 09.05.12 DATE OF PRONOUNCEMENT : 11.05.12 O R D E R PER N.S.SAINI, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX(A)-V DATED 06.09.10. ITA NO.1808/MDS/10 2 2. THE ASSESSEE HAS TAKEN FIVE GROUNDS OF APPEAL I N THIS APPEAL WHEREIN THE GRIEVANCE PROJECTED BY THE ASSESSEE IS THAT THE COMMISSIONER OF INCOME TAX(A) ERRED IN CONFIRMING T HE ORDER OF THE ASSESSING OFFICER PASSED U/S.154 DATED 07.06.10 WHE RE IT WAS HELD THAT THE ISSUE OF CARRY FORWARD DEPRECIATION CAN BE SET OFF AGAINST ANY HEAD OF INCOME CANNOT BE CONSIDERED U/S.154 OF THE INCOME TAX ACT 1961, SINCE IT IS A LEGAL ISSUE AND WAS NOT A MISTA KE APPARENT FROM RECORD. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD . IN THE INSTANT CASE, ASSESSEE IN ITS RETURN OF INCOME CLAIMED RENT AL INCOME DERIVED FROM LETTING OUT OF PLANT AND MACHINERY ETC. AS BUS INESS INCOME, WHICH WAS ASSESSED BY THE ASSESSING OFFICER AS INC OME FROM HOUSE PROPERTY. THE ASSESSEE IN ITS RECTIFICATION PETIT ION CLAIMED THAT AGAINST THIS INCOME FROM HOUSE PROPERTY BROUGHT FOR WARD UNABSORBED ITA NO.1808/MDS/10 3 DEPRECIATION IS REQUIRED TO BE SET OFF. THIS RECTIF ICATION PETITION OF THE ASSESSEE WAS REJECTED BY THE LOWER AUTHORITIES. 4. AGGRIEVED BY THE SAID REJECTION ORDER, THE ASSE SSEE FILED PRESENT APPEAL. 5. DURING THE COURSE OF HEARING OF THE APPEAL, THE ASSESSEE SUBMITTED BEFORE US THAT ON AN APPEAL AGAINST THE A SSESSMENT ORDER, THE COMMISSIONER OF INCOME TAX(A) ACCEPTED THE CLAI M OF THE ASSESSEE THAT RENTAL INCOME DERIVED FROM LETTING OU T OF THE PLANT AND MACHINERY IS ASSESSABLE AS BUSINESS INCOME, WHICH W AS ALSO CONFIRMED BY THE TRIBUNAL. 6. AS NOW NO INCOME IS ASSESSED UNDER THE HEAD INC OME FROM HOUSE PROPERTY , THE ISSUE THAT UNABSORBED DEPRECI ATION IS TO BE SET OFF AGAINST INCOME ASSESSED UNDER THE HEAD HOUSE P ROPERTY HAS BECOME MERELY ACADEMIC IN NATURE. THEREFORE, THIS APPEAL OF ITA NO.1808/MDS/10 4 ASSESSEE BECOMES INFRUCTUOUS. IN VIEW OF THE ABOVE SUBMISSIONS OF THE ASSESSEE, THE PRESENT APPEAL OF THE ASSESSEE IS DISMISSED AS INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED ON FRIDAY THE 11 TH MAY, 2012 AT CHENNAI. SD/- SD/- ( V.DURGA RAO) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 11 TH MAY, 2012. K S SUNDARAM. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE