Samsung Heavy Industries Co. Ltd., Gurgaon V. DCIT (International Taxation), Circle-2, Dehradun

ITA 2141/DEL/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 3970 (ITAT-DEHRADUN)
• Duration Of Justice: 4 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 26-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAYAK KUMAR
• Keywords: Set aside

Judgement Text

1 | Page IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH: DEHRAHUN BEFORE SHRI N.K.BILLAIYA, ACCOUNTANT MEMBER & SHRI KUL BHARAT, JUDICIAL MEMBER [THROUGH VIDEO CONFERENCING AT NEW DELHI] ITA No.2141/Del/2018 [Assessment Year : 2013-14] Samsung Heavy Industries Co.Ltd., C/o-Pricewaterhousecoopers Pvt.Ltd., 17 th Floor, Building 10 Tower C, DLF Cyber City, Gurgaon-122002. PAN-AAJCS7859K vs DCIT (International Taxation), Circle-2, Dehradun. APPELLANT RESPONDENT Appellant by Shri Rishabh Malhotra, AR Respondent by Shri Mayak Kumar, JCIT DR Date of Hearing 24.08.2022 Date of Pronouncement 23.09.2022 ORDER PER KUL BHARAT, JM : The present appeal filed by the assessee for the assessment year 2013- 14 is directed against the order of Ld. CIT(A)-2, Noida dated 25.10.2017. 2. The assessee has raised following ground of appeal:- 1. “That on the facts and circumstances of the case, the Ld. CIT(A) erred in not allowing the set-off of brought forward losses amounting to Rs.9,46,44,454/-, claimed by the appellant in its return of income while computing the assessed income under normal provisions of the Act. The above grounds of appeal are independent and without prejudice to one another. The Appellant craves leave to alter, amend or withdraw all or any objections herein or add any further grounds as may be considered necessary either before or during the hearing of this appeal.” 2 | Page FACTS OF THE CASE 3. Facts giving rise to the present appeal are that in this case, the assessment order u/s 143(3)/144C(1) of the Income Tax Act, 1961 (“the Act”) i.e. draft assessment order for Assessment Year was passed on 18.03.2016 at total income of Rs.9,48,33,770/-. Against the draft assessment order, the assessee had not filed any objection and the Assessing Officer [“AO”] was not intimated regarding filing of the objection. Therefore, the AO finalized the assessment of Rs.9,48,33,770/- u/s 143(3)/ 144C(3)(b) of the Act vide order dated 17.05.2016. 4. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A), who after considering the submissions, partly allowed the appeal. Thereby, he restricted the addition to the extent of Rs.1,11,330/- made by the AO and also deleted the miscellaneous expenses of Rs.77,982/-. Thereafter, Ld.CIT(A) treated the claim of set off of brought forward losses as premature. 5. Aggrieved against the order of Ld.CIT(A), the assessee is in appeal before this Tribunal. 6. The only effective ground raised by the assessee is against the denial of set off of brought forward losses amounting to Rs.9,46,44,454/-. 7. Ld. Counsel for the assessee reiterated the submissions as made before Ld.CIT(A). He submitted that Ld.CIT(A) has accepted the factum of eligibility for the adjustment of brought forward losses as per provision of the Act however, declined to allow treating the same as premature. He contended that the issue of loss has now been decided by the Jurisdictional High Court in 3 | Page favour of the assessee in respect of various Assessment Years. He therefore, prayed that the AO may be directed to allow the adjustment for brought forward losses. 8. Per contra, Ld. JCIT DR supported the orders of the authorities below. However, he could not contradict the submissions of the Revenue that the issue of losses has been decided in favour of the assessee. 9. We have heard Ld. Authorized Representatives of the parties and perused the material available on record and gone through the orders of the authorities below. There is no dispute with regard to the fact that the Ld.CIT(A) declined the claim for adjustment of brought forward losses on the ground that the claim being premature. For the sake of clarity, the relevant contents of the order of Ld. CIT(A) is reproduced as under:- 5.2. “The appellant has taken this ground for non-allowance of brought forward losses. It is learnt from the records that all the assessment years in which the losses have been computed by the appellant are pending for adjudication on different grounds before the Hon’ble High Court and Ld 1TAT. It is not denied that the appellant is very much eligible for the adjustment of brought forward losses as per the provisions of the Act. If at all any losses are there after giving appeal effect of the order in the cases of the appellant in earlier assessment years, the same can be adjusted against the total income of the relevant assessment year or can be carried forward to next year as per the provisions of the Act. However, such claim of brought forward losses is premature at this stage. Hence, for statistical purposes the grounds of appeal are considered to be dismissed.” 4 | Page 10. It is the case of the assessee that the issue related to loss has been decided in favour of the assessee qua different Assessment Years, the Revenue could not controvert this contention. We, therefore, considering the facts and material available on record, set aside the issue to the file of Ld.CIT(A) to verify the correctness of the claim regarding the adjustment of brought forward losses and allow the same if the losses have been crystallized by the order of Hon’ble Jurisdictional High Court. Thus, ground raised by the assessee is allowed for statistical purposes. 11. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 23 rd September, 2022. Sd/- Sd/- (N.K.BILLAIYA) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER * Amit Kumar * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI