ITO, Ward - 10(1) , Kolkata V. M/s. Eastern Sugar and Industries Limited , Kolkata

ITA 2660/KOL/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6565 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 24-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA B BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI ABY T. VARKEY, JUDICIAL MEMBER) I.T.A. NO. 2660/KOL/2018 ASSESSMENT YEAR: 2012-13 ITO, WARD-10(1), KOLKATA.................................................................................................APPELLANT VS. M/S. EASTERN SUGAR AND INDUSTRIES LIMITED...........................................................RESPONDENT [PAN: AABCE 2944 F] APPEARANCES BY: SMT. RANU BISWAS, ADDL. CIT, APPEARED ON BEHALF OF THE REVENUE. SH. OM PRAKASH LUNDIA, FCA, APPEARED ON BEHALF OF THE ASSESSEE. DATE OF CONCLUDING THE HEARING : MARCH 11 TH , 2021 DATE OF PRONOUNCING THE ORDER : APRIL 16 TH , 2021 ORDER PER J. SUDHAKAR REDDY, AM : THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-4, KOLKATA, [HEREINAFTER THE CIT(A)], PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DATED 17.09.2018 FOR THE ASSESSMENT YEAR 2012-13 ON THE FOLLOWING GROUND: I) THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A)-4, KOLKATA HAS ERRED IN DELETING THE DISALLOWANCE OF SETTING OFF OF BROUGHT FORWARD BUSINESS LOSS AND UNABSORBED DEPRECIATION OF EARLIER YEARS OF RS. 4,41,55,000/- WHICH WAS ADJUSTED BY THE ASSESSEE IN ITS RETURN OF INCOME. 2. AFTER HEARING RIVAL CONTENTIONS WE FIND THAT THE LD. CIT(A) AT PARA-5 HELD AS FOLLOWS: I AGREE WITH THE CONTENTION OF THE LD. AR THAT THE BROUGHT FORWARD DEPRECIATION ACQUIRES CHARACTERISTICS OF CURRENT YEAR DEPRECIATION AND THEREFORE, IT CAN BE SET OFF AGAINST LOSS FROM OTHER SOURCES AS WELL. THEREFORE, TO THIS EXTENT THE PLEA OF THE ASSESSEE CAN BE ACCEPTED SIMPLY. THE LD. AR STATED THAT IF THE ASSESSEE IS ALLOWED SET OFF OF DEPRECIATION, THEN THE INCOME WOULD BE REDUCED TO NIL AND THEREFORE, THE ASSESSEE WILL NOT PRESS OTHER GRIEVANCE. IN VIEW OF THE ABOVE ADJUDICATION, THERE IS NO NEED TO ADJUDICATE ON THE ISSUE AS TO WHETHER THE MACHINERY HIRE CHARGES WILL BE ASSESSABLE UNDER HEAD INCOME FROM OTHER SOURCES, THEREFORE GROUND NO. 2 IS PARTLY ALLOWED. 3. THIS DECISION FOLLOWS THE JUDGEMENT OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. JAIPURIA CHINA CLAY MINES (P.) LTD. [1966] 59 ITR 555 AND OTHER JUDGEMENTS. THUS 2 I.T.A. NO. 2660/KOL/2018 ASSESSMENT YEAR: 2012-13 M/S. EASTERN SUGAR AND INDUSTRIES LIMITED. WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A). WE UPHOLD THE SAME AND DISMISS THIS GROUND OF THE REVENUE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. KOLKATA, THE 16 TH APRIL, 2021. SD/- SD/- [ABY T. VARKEY] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 16.04.2021 BIDHAN (P.S.) COPY OF THE ORDER FORWARDED TO: 1. ITO, WARD-10(1), KOLKATA. 2. M/S. EASTERN SUGAR AND INDUSTRIES LIMITED, 4 TH FLOOR, CHANDRA KUNJ, 3 PRETORIA STREET, CAMAC STREET, KOLKATA-700 071. 3. CIT(A)-4, KOLKATA. (SENT THROUGH MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES