M/S. VIRAJ ALLOYS LTD, MUMBAI V. THE DCIT 18 & 19, MUMBAI

ITA 303/MUM/2008

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88068 (ITAT-MUMBAI)
• Duration Of Justice: 7 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 25-02-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 14-01-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S PADMAJA
• Assessee Lawyers: S ATISH CHANDAK; BHUMIKA VORA
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 43B; 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F, MUMBAI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI VIVEK VARMA, JUDICIAL MEMBER ITA NO. : 1915/MUM/2008 (ASSESSMENT YEAR: 1999-2000) ITA NO. : 1919/MUM/2008 (ASSESSMENT YEAR: 2003-2004) ITA NO. : 302/MUM/2008 (ASSESSMENT YEAR: 2004-2005) ITA NO. : 303/MUM/2008 (ASSESSMENT YEAR: 2005-2006) M/S VIRAJ ALLO YS LTD. , 10, IMPERIAL CHAMBERS, WILSON ROAD, BALLARD ESTATE, MUMBAI -400 038 .: PAN: AAACV 2755 L VS DCIT, CENTRAL CIRCLE -18 & 19, AAYAKAR BHAVAN, MUMBAI -400 020 (APPELLANT) !' (RESPONDENT) APPELLANT BY : SHRI SATISH CHANDAK & MS. BHUMIKA VORA RESPONDENT BY : MS S PADMAJA /DATE OF HEARING : 24-12-2014 /DATE OF PRONOUNCEMENT : 14-01-2015 O R D E R , , , , PER VIVEK VARMA, JM: THE FOLLOWING APPEALS HAVE BEEN FILED BY THE ASSESSEE AGAINST THE ORDERS OF CIT(A): ITA NO. ASST. YEAR CIT(A) ORDER DATED 1915/MUM/2008 1999-2000 VI, MUMBAI 21.01.2008 1919/MUM/2008 2003-2004 VI, MUMBAI 23.01.2008 302/MUM/2008 2004-2005 VI, MUMBAI 26.11.2007 303/MUM/2008 2005-2006 VI, MUMBAI 26.11.2007 WHEREIN SEVERAL GROUNDS HAVE BEEN RAISED ON MERITS. M/S VIRAJ ALLOYS LTD. ITA 1915/MUM/2008 ITA 1919/MUM/2008 ITA 302/MUM/2008 ITA 303/MUM/2008 2 2. AT THE TIME OF HEARING, THE AR POINTED OUT THAT THE ASSESSEE HAD APPROACHED BOARD FOR INDUSTRIAL AND FINANC IAL RECONSTRUCTION (BIFR), BASED ON THE FINANCIAL RESULTS FOR 31.03.2000. BIFR IN ITS ORDER, ORDERED AMONGST OTHER ISSUES TO, I) INCOME TAX TO CONSIDER I) TO EXTEND THE BENEFIT OF CARRY FORWARD OF LOSSES BEYOND THE EIGHT YEAR PERIOD AS PRESCRIBED IN SECTI ON 72(3) OF THE I.T. ACT, 1961. II) TO GRANT EXEMPTIONS UNDER PROVISIONS OF SECTION 41( 1) I.E. INTEREST WAIVER/PENALTY WAIVER NOT TO BE TREAT ED AS INCOME. III) 43B DISALLOWANCE RELATING TO PAYMENT OF SALES TAX/LOANS ETC. NOT TO BE CONSIDERED. IV) TO EXEMPT THE COMPANY FROM APPLICATION OF 115JB I.E. MAT TILL SUCH TIME THE COMPANY HAS FULLY UTILI ZED ITS CARRY FORWARD BOOK LOSSES AND UNABSORBED DEPRECIATION. V) TO EXEMPT THE COMPANY UNDER THE PROVISIONS OF SECTION 139(1) OF THE INCOME TAX ACT SO THAT THE COMPANY IS ALLOWED TO CARRY FORWARD THE UNABSORBED LOSSES. 3. THIS ORDER, AS PER AR WAS WRONGLY INTERPRETED BY THE REVENUE AUTHORITIES, WHEREIN, IT WAS READ AS INCOME TAX DEPARTMENT MAY CONSIDER . THUS, THE REVENUE AUTHORITIES ERRED IN NOT CONSIDERING THE OBSERVATIONS OF BIFR WITH REGARD T O VARIOUS EXEMPTIONS GRANTED BY IT. 4. THE DR ON THE OTHER HAND SUPPORTED THE ORDERS OF THE REVENUE AUTHORITIES IN THE YEARS UNDER CONSIDERATION. 5. ON GOING THROUGH THE SCHEME OFFERED BY THE BIFR, WE FIND THAT THE REVENUE AUTHORITIES HAD MISINTERPRETED THE DIRECTIONS/SCHEME AS MENTIONED ABOVE. SINCE ALL THE ADDITION S, AS MADE BY THE REVENUE AUTHORITIES PERTAIN & LINKED TO THE SCHEME OF THE BIFR, WE ARE OF THE CONSIDERED OPINION THA T THE IMPUGNED ASSESSMENT BE RESTORED TO THE AO. M/S VIRAJ ALLOYS LTD. ITA 1915/MUM/2008 ITA 1919/MUM/2008 ITA 302/MUM/2008 ITA 303/MUM/2008 3 6. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDERS OF CIT(A) IN ALL THE FOUR YEARS BEFORE US AND RESTORE THE CASES TO THE FILE OF AO FOR ASSESSMENTS BE FRAMED AFRESH DE NOVO , AS PER LAW AND AS PER THE SCHEME DIRECTED BY BIFR. 7. IN THE RESULT, THE APPEALS AS MENTIONED ABOVE ARE TR EATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JANUARY, 2015. SD/- SD/- ( ) ( ) (N.K. BILLAIYA) ( VIVEK VARMA ) ACCOUNTANT MEMBER J UDICIAL MEMBER MUMBAI, DATE: 14 TH JANUARY, 2015 !%/ COPY TO:- 1) / THE APPELLANT. 2) !' / THE RESPONDENT. 3) THE CIT(A)CENTRAL -VI, MUMBAI. 4) THE CIT- CENTRAL -II, MUMBAI. 5) '()* !%+ , , / THE D.R. F BENCH, MUMBAI. 6) *,- . COPY TO GUARD FILE. /0+ / BY ORDER / / TRUE COPY / / 1 / 2 3 , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN, SR.PS