ACIT, Circle - 7(1), , Kolkata V. M/s. Dunlop India Ltd., , Kolkata

ITA 1984/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0153 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 14-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RADHEY SHYAM
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D, BENC H KOLKATA BEFORE SHRI S.S. VISWANETHRA RAVI, JM &DR. A.L.SAIN I, AM ./ITA NO.1984/KOL/2018 ( / ASSESSMENT YEAR: 2011-12) ACIT, CIRCLE-7(1), KOLKATA VS. M/S DUNLOP INDIA LTD. FLAT NO. 1, 5 TH FLOOR, 9, SYED AMIR ALI AVENUE, KOLKATA-700017. ./ ./PAN/GIR NO.: AABCD 0198 E (ASSESSEE) .. (REVENUE) ASSESSEE BY : SHRI RADHEY SHYAM, CIT DR RESPONDENT BY : NONE / DATE OF HEARING : 28/03/2019 /DATE OF PRONOUNCEMENT : 29/03/2019 / O R D E R PER DR. A. L. SAINI, AM: THE CAPTIONED APPEAL FILED BY THE REVENUE, PER TAINING TO ASSESSMENT YEAR 2011-12 IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEAL)-3, KOLKATA, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT , 1961 (IN SHORT THE ACT) DATED 31.03.2014. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE AS FOLLOWS: M/S DUNLOP INDIA LTD. ITA NO.1984/KOL/2018 ASSESSMENT YEAR:2011-12 P PP PA AA AG GG GE EE E | || | 2 22 2 A. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS IN FACTS IN ALLOWING SET OFF AND CAR RY FORWARD OF UNABSORBED DEPRECIATION OF RS. 7,76,12,179/- FOR THE A.Y. 1994 -95 TO 2010-11, WHICH WAS DISALLOWED BY THE A.O. B. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR MODIFY ANY OR ALL GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING OF THE APPE AL. 3. AT THE TIME OF HEARING NONE APPEARED ON BEHALF OF ASSESSEE IN SPITE OF ISSUANCE OF NOTICE FOR HEARING MORE THAN ONE OCCASION AND LD . DEPARTMENTAL REPRESENTATIVE(DR), WAS PRESENT FOR THE APPELLANT R EVENUE. IN THE ABSENCE OF ANY APPEARANCE BY THE ASSESSEE, THE APPEAL IS BEING DISPOSED OF EX PARTE QUA THE ASSESSEE, AFTER HEARING LD. DR FOR THE REVENUE ON M ERITS IN TERMS OF RULE 24 OF THE INCOME TAX APPELLATE, TRIBUNAL, RULES, 1963. 4. AFTER HEARING THE LD. DR FOR THE REVENUE AND HAV ING GONE THROUGH THE APPELLATE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APP EALS) WE ARE OF THE VIEW THAT THERE IS NO ANY INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). THE LD. CIT(A) HAS DIRECTED THE AO TO EXAMINE AND DETERMINE THE AMOUNT OF ABSORBED DEPRECIATION AVAILABLE TO THE ASSESSEE FOR CARRY F ORWARD AS ON 01.04.2002 AND TREAT THE SAME IN ACCORDANCE WITH SECTION 32(2) OF THE AMENDED FINANCE ACT, 2001. THEREFORE, THE AO WAS DIRECTED BY THE LD. CIT (A) TO DETERMINE THE ABSORBED DEPRECIATION ELIGIBLE FOR SET OFF IN THE I MPUGNED YEAR AND THEREAFTER THE CARRY FORWARD TO SUBSEQUENT YEAR AS PER DIRECTION G IVEN BY THE LD. CIT(A). WE QUOTE HERE THE CONCLUDING REMARK OF THE LD. CIT(A) FOR READY REFERENCE WHICH IS GIVEN BELOW: IN VIEW OF THE ABOVE DIRECTION OF THE JURISDICTION AL TRIBUNAL THE ASSESSING OFFICER IS DIRECTED TO DETERMINE THE AMOUNT OF UNAB SORBED DEPRECIATION AVAILABLE TO THE ASSESSEE FOR CARRY FORWARD AS ON 01.04.2001 AND TREAT THE SAME IN ACCORDANCE WITH SECTION 32(2) OF THE AMENDED FINA NCE ACT, 2001. THE ASSESSING OFFICER IS ACCORDINGLY DIRECTED TO DETERMINE THE UN ABSORBED DEPRECIATION ELIGIBLE FOR SET OFF IN THE IMPUGNED YEAR AND THEREAFTER CAR RY FORWARD TO SUBSEQUENT YEARS AS PER DIRECTIONS ABOVE. WE NOTE THAT THE LD. CIT(A) HAS PASSED A REASONED O RDER AFTER CONSIDERING THE PROVISION OF SECTION 32(2) AND JUDICIAL PRECEDENT A VAILABLE ON THE SUBJECT, THEREFORE WE ARE OF THE VIEW THAT THE CONCLUSION AR RIVED AT BY THE LD. CIT(A) ARE M/S DUNLOP INDIA LTD. ITA NO.1984/KOL/2018 ASSESSMENT YEAR:2011-12 P PP PA AA AG GG GE EE E | || | 3 33 3 CORRECT AND ADMIT NO INTERFERENCE BY US. WE APPROVE AND CONFIRM THE ORDER OF THE LD. CIT(A) AND DISMISS THE GROUNDS OF APPEAL RAISED BY THE REVENUE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 29.03. 2019 SD/- ( S.S.VISWANETHRA RAVI ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA; / DATE: 29/03/2019 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. ACIT, CIRCLE-7(1), KOLKATA 2. M/S DUNLOP INDIA LTD. 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES