The ITO, Ward-1(1), RAJKOT-GUJARAT V. M/s. Jay Shree Krishna Dyeing & Printing Works, Jetpur

ITA 32/RJT/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1088 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 08-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: MJ RANPURA
• Keywords: Business income; Depreciation; Tax effect; Unabsorbed depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ./ ITA NO.32/RJT/2014 / ASSTT. YEAR: 2005-06 ITO, WARD-1(1) RAJKOT. VS M/S.JAY KRISHNA DYEING & PRINTING WORKS C/O. R.K. PATEL & CO., SATSANG HALL, KANAKIYA PLOT JETPUR 360 370. / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI AVINASH KUMAR, AR ASSESSEE BY : SHRI M.J. RANPURA, CA / DATE OF HEARING : 28/05/2015 / DATE OF PRONOUNCEMENT: 29/05/2015 / O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER: THIS AN APPEAL FILED BY THE REVENUE AGAINST ORDER OF THE CIT(A), J AMNAGAR DATED 24.10.2013 FOR ASSTT.YEAR 2005-06. 2. BRIEF FACTS OF THE CASE ARE THAT IN THE ASSESSMEN T MADE UNDER SECTION 143(3) R.W.S. 147 OF THE ACT DATED 26 .11.2010, THE AO DISALLOWED DEDUCTION FOR CLAIM OF BROUGHT FORWAR D LOSS/UNABSORBED DEPRECIATION TO THE EXTENT OF RS.5, 18,696/-, ON THE GROUND THAT NO SUCH BUSINESS LOSS/UNABSORBED DE PRECIATION WAS SHOWN IN THE COMPUTATION OF INCOME FILED ALONG WITH THE RETURN OF INCOME FILED FOR THE PRECEDING YEAR I.E. ASSTT.YEAR 2004- 05 NOR ANY LOSS WAS APPEARING IN THE PROFIT & LOSS ACCOUNT PERTAINING TO THE ASSTT.YEAR 2004-05. ITA NO.32/RJT/2014 2 3. ON APPEAL, THE CIT(A) ALLOWED THE CLAIM OF THE A SSESSEE ON THE GROUND THAT THE ASSESSEE FILED COPY OF PROFIT & LOSS ACCOUNT, BALANCE SHEET AND COMPUTATION OF TOTAL INCOME ALONG WITH THE ACKNOWLEDGEMENT OF RETURN OF INCOME. DURING THE FINANCIAL YEAR 2002-03, RELEVANT TO THE ASST.YEAR 2003-04, THE ASS ESSEE INCURRED BUSINESS LOSS OF RS.5,385 AND BOTH THE LOSSES OF AS STT.YEAR 2002- 03 AND 2003-04 TOTALING TO RS.5,18,696 WAS CARRIED TO THE BALANCE SHEET AND RETURN OF INCOME AT RS.NIL WAS FILED ON 2 9.9.2003. FURTHER, DURING THE FINANCIAL YEAR 2003-04 RELEVANT TO THE ASSTT.YEAR 2004-05, THERE WAS NIL INCOME, AND HENCE , THE BUSINESS LOSS OF RS.5,18,696 REMAINED AS SUCH IN TH E BALANCE SHEET FOR THE ASSTT.YEAR 2004-05, AND THE RETURN OF INCOME OF THE ASSTT.YEAR 2004-05 WAS ALSO FILED WITHIN THE TIME A LLOWED UNDER SECTION 139(1) OF THE ACT. IN SUPPORT OF THIS, THE ASSESSEE HAS FILED COPY OF THE PROFIT & LOSS ACCOUNT AND THE BAL ANCE SHEET ALONG WITH THE ACKNOWLEDGMENT OF RETURN OF INCOME. THE CIT(A) OBSERVED THAT ALL THESE EVIDENCES PERUSED BY HIM SH OWED THAT THERE DID EXIST LOSS IN EARLIER YEARS, FOR WHICH TH E RETURNS OF INCOME WERE FILED IN TIME AND HENCE, THE CLAIM OF B ROUGHT FORWARD LOSS WAS GENUINE, AND THE SAME WAS ALLOWED TO BE SE T OFF AGAINST THE BUSINESS INCOME OF THE ASSESSEE. 5. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 6. THE DR COULD NOT POINT OUT ANY SPECIFIC ERROR IN THE ABOVE FINDINGS OF THE CIT(A) AND NEITHER COULD BRING ANY MATERIAL ON RECORD TO SHOW THAT THE LOSS OF RS.5,18,696/- DID N OT EXIST FOR THE YEAR, WHICH COULD BE ADJUSTED AGAINST THE INCOME OF THE ASSESSEE. STILL FURTHER, BOTH THE PARTIES AGREED BEFORE US TH AT TAX EFFECT IN ITA NO.32/RJT/2014 3 THIS APPEAL OF THE REVENUE WAS LESS THAN RS.3,00,00 0/-, AND THEREFORE ALSO THIS GROUND OF THE APPEAL OF THE REV ENUE IS NOT MAINTAINABLE. HENCE, WE DISMISS THE APPEAL OF THE REVENUE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON FRIDAY THE 29 TH MAY, 2015 AT RAJKOT. SD/- SD/- ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 29/5/2015