M/s Longview Tea Co. Ltd., Kolkata V. DCIT, Circle-6(1), Kolkata, Kolkata

ITA 2182/KOL/2016

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0841 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 10-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PINAKI MUKHERJEE
• Assessee Lawyers: S JHAJHARIA
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 115JB; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA [BEFORE HONBLE SHRI S.S. GODARA, JM & SHRI M.BAL AGANESH, AM ] I.T.A NOS. 2181 & 218 2/KOL/2016 ASSESSMENT YEARS : 2012- 13 & 2013-14 M/S LONGVIEW TEA CO. LTD. -VS- DCIT, C IRCLE-6(1), KOLKATA [PAN: AAACL 5564 F] (APPELLANT) (RESPOND ENT) FOR THE APPELLANT : SHRI S. JHAJ HARIA, FCA FOR THE RESPONDENT : SHRI PINAKI MUKHERJ EE, ADDL. CIT SR.DR DATE OF HEARING : 01.10.2018 DATE OF PRONOUNCEMENT : 05.10.2018 ORDER PER M.BALAGANESH, AM 1.THESE TWO APPEALS OF THE ASSESSEE ARISE OUT OF TH E SEPARATE ORDERS PASSED THE LD. COMMISSIONER OF INCOME TAX (IN SHORT THE LD. CIT(A) ] IN APPEAL NOS. 1157 &1877/CIT(A)-2/14-15 DATED 01.07.2016 FOR ASSESSMEN T YEARS 2012-13 AND 2013-14 RESPECTIVELY AGAINST THE INTIMATION U/S 143(1) PASS ED BY CPC BANGALORE ON 23.03.2013 AND 12.11.2014 FOR ASSESSMENT YEARS 2012-13 AND 201 3-14 RESPECTIVELY. 2. THE COMMON ISSUE INVOLVED IN BOTH THESE APPEAL I S WITH REGARD TO NON-GRANTING OF SET OFF OF UNABSORBED DEPRECIATION LOSS WITH THE INCOME OF THE ASSESSEE WHILE FRAMING INTIMATION U/S 143(1) OF THE ACT BY CPC. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSES SEE FOR THE ASSESSMENT YEAR 2012-13 CLAIMED SET OFF OF UNABSORBED DEPRECIATION BROUGHT FORWARD BY IT AMOUNTING TO RS. 2 ITA NOS.2181&2182/KOL/2016 M/S LONGVIEW TEA CO. LTD. A.YRS. 2012-13 & 2013-14 2 40,36,369/- WHICH WAS ALSO DULY MENTIONED IN SCHEDU LE BFLA OF THE INCOME TAX RETURNS. THE ASSESSEE ALSO CLAIMED SET OFF OF BROUG HT FORWARD BUSINESS LOSS OF RS. 48,23,371/- IN THE RETURN. THE CPC BANGALORE WHILE PROCESSING THE RETURN U/S 143(1), ALLOWED ADJUSTMENT OF BROUGHT FORWARD BUSINESS LOSS AMOUNTING TO RS. 48,23,371/- BUT DENIED ADJUSTMENT OF UNABSORBED DEPRECIATION OF RS. 40,36,369/- WITHOUT ASSIGNING ANY REASON. 4. SIMILARLY IN THE ASSESSMENT YEAR 2013-14, THE AS SESSEE COMPANY HAD CLAIMED SET OFF OF BROUGHT FORWARD LOSS OF RS. 22,03,636/- PERTAINI NG TO ASSESSMENT YEAR 2005-06 IN THE RETURN OF INCOME. HOWEVER WHILE PROCESSING THE RETU RN U/S 143(1) SET OFF OF THE SAME WAS NOT ALLOWED BY THE CPC, BANGALORE. 5. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A) FOR BOTH THE YEARS WHICH WERE DECIDED AGAINST THE ASSESSEE. AGGRIEVED THE AS SESSEE IS IN APPEALS BEFORE US FOR BOTH THE YEARS. 6. WE HAVE HEARD RIVAL SUBMISSIONS. WE FIND FROM TH E MATERIALS AVAILABLE ON RECORD THAT THE ASSESSEE HAD ALSO PREFERRED A RECTIFICATIO N PETITION U/S 154 OF THE ACT BEFORE THE LD. AO SEEKING FOR THE SET OFF OF UNABSORBED DEPRE CIATION LOSS AND UNABSORBED BUSINESS LOSS FOR THE RELEVANT ASSESSMENT YEARS. THE ASSESS EE HAS FILED 154 PETITION ON SEVERAL DATES I.E. 21.11.2014, 13.01.2015, 15.04.2016 AND 2 6.04.2018. NONE OF THE PETITIONS FILED BY THE ASSESSEE WERE ACTED UPON BY THE LD. AO . 7. WITH REGARD TO OTHER GROUNDS RAISED BY THE ASSES SEE FOR ASSESSMENT YEAR 2012-13 IN COMPUTATION OF BOOK PROFITS U/S 115JB OF THE ACT, T HE ASSESSEE DISCLOSED BOOK PROFITS OF RS. 70,03,340/- AND THE SAME WAS COMPUTED BY THE CP C, BANGALORE AT RS. 85,44,650/- WITHOUT ASSIGNING ANY REASON. THE ASSESSEE HAS ALSO PREFERRED 154 PETITION BEFORE THE LD. AO FOR THE SAME AS THE RECTIFICATION RIGHTS TO TRAN SFER TO THE JURISDICTIONAL ASSESSING 3 ITA NOS.2181&2182/KOL/2016 M/S LONGVIEW TEA CO. LTD. A.YRS. 2012-13 & 2013-14 3 OFFICER ON 05.02.2016 AS IS EVIDENT FROM THE E-FILI NG WEBSITE OF INCOME TAX DEPARTMENT. THIS WAS ALSO NOT ACTED UPON BY THE LD. AO. 8. IN VIEW OF THE AFORESAID UNDISPUTED FACTS, WE DE EM IT FIT AND APPROPRIATE TO REMAND THE ISSUES RAISED IN THESE TWO APPEALS BEFORE US TO THE FILE OF THE LD. AO FOR DE NOVO ADJUDICATION IN ACCORDANCE WITH LAW. ACCORDINGLY, G ROUNDS RAISED IN THESE TWO APPEALS OF THE ASSESSEE FOR ASSESSMENT YEARS 2012-13 AND 20 13-14 RESPECTIVELY ARE ALLOWED FOR STATISTICAL PURPOSES. 9. IN THE RESULT, THE APPEALS OF THE ASSESSEE FOR A SSESSMENT YEARS 2012-13 AND 2013-14 ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 05.10.2018 SD/- SD/- [S.S. GODARA] [ M .BALAGANESH ] JUDICIAL MEMBER ACCOUNTANT MEM BER DATED : 05.10.2018 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. M/S LONGVIEW TEA CO. LTD. 16, HARE STREET, BBD B AG, KOLKATA-700001. 2. ACIT(CPC), BANGALORE/DCIT,CIRCLE-6(1), AAYAKAR B HAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700001. 3..C.I.T(A).- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVAT E SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHE S