The ACIT,Vapi Circle, Vapi V. Gujarat Themis Biosyn Ltd., Vapi

ITA 366/AHD/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2077 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 08-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T SANKAR
• Assessee Lawyers: M K PATEL
• Keywords: Depreciation; Unabsorbed depreciation

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.366/AHD/2013 [ASSTT.YEAR : 2009-2010] ACIT, VAPI CIRCLE VAPI. /VS. M/S.GUJARAT THEMIS BIOSYN LTD. 69-C, GIDC INDUSTRIAL AREA VAPI 396 195. PAN : AABCG 0802 C ( (( (-. -. -. -. / APPELLANT) ( (( (/0-. /0-. /0-. /0-. / RESPONDENT) + 1 2 )/ REVENUE BY : SHRI T. SANKAR, SR.DR 4& 1 2 )/ ASSESSEE BY : SHRI M.K. PATEL 5 1 &(*/ DATE OF HEARING : 9 TH APRIL, 2013 678 1 &(*/ DATE OF PRONOUNCEMENT : 10-5-2013 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2009-2010 IS DIRECTED AGAINST T HE ORDER OF THE CIT(A)-I, VALSAD DATED 31.10.2012. 2. THE GROUND NO.1 OF THE APPEAL OF THE REVENUE IS AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.40,72,334/- ON ACCOUNT OF SUNDRY CREDITORS. ITA NO.366/AHD/2013 -2- 3. THE LEARNED DR HAS RELIED ON THE ORDER OF THE AO . THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE I S COVERED IN ITS FAVOUR WITH THE DECISION OF THE ITAT, AHMEDABAD IN ASSESSE ES OWN CASE FOR A.Y.2006-2007. HE SUBMITTED THAT THE ASSESSEE HAS NOT WRITTEN OFF SUNDRY CREDITORS AND THE AMOUNT IN QUESTION IS PAYABLE TO THE CREDITORS. HE RELIED ON THE ORDER OF THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND HAVE PE RUSED THE ORDERS OF THE AO AND THE CIT(A). IT IS AN ADMITTED FACT T HAT THE AMOUNT PAYABLE TO DIFFERENT SUNDRY CREDITORS WAS PAYABLE AS ON THE LA ST DATE OF ACCOUNTING PERIOD, AS PER THE ACCOUNT BOOKS OF THE ASSESSEE. THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE ITA T, IN ASSESSEES OWN CASE FOR THE A.Y.2006-2007, REFERRED TO BY THE CIT(A) IN PARA 5.3 OF HIS ORDER, AND ACCORDINGLY SINCE THE ISSUE IS COVERED IN FAVOU R OF THE ASSESSEE, WE HOLD THAT THERE IS NO MERIT IN GROUND NO.1 OF THE A PPEAL OF THE REVENUE, WHICH IS ACCORDINGLY DISMISSED. 5. THE GROUND NO.2 OF THE REVENUES APPEAL IS AS UN DER: 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING THE UNABSORBED DEPRECIATION OF RS.58,48,076/-. 6. THE LEARNED DR SUBMITTED THAT THE ISSUE OF ALLOW ING UNABSORBED DEPRECIATION IS COVERED WITH THE DECISION OF THE SP ECIAL BENCH, MUMBAI TRIBUNAL IN 40 SOT 124. THE LEARNED COUNSEL FOR TH E ASSESSEE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN GENERAL MOTORS INDIA P. LTD. VS. DCIT, 25 TAXMANN.COM 364 (GUJ). HE SUBMITTED THAT THE CIT(A) HAS FOLLOWED THIS JUDGMENT OF THE HONBLE GUJARAT HIGH COURT IN HIS APPELLATE ORDER. HE RELIED ON THE ORDER OF THE CIT(A). ITA NO.366/AHD/2013 -3- 7. WE HAVE CONSIDERED RIVAL SUBMISSIONS, AND WE FIN D THAT THE ISSUE OF ALLOWING OF UNABSORBED DEPRECIATION IS COVERED WITH THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN GENERAL MOTORS INDIA P. LTD. (SUPRA). THE CIT(A) HAS FOLLOWED THIS DECISION OF THE HONBLE GU JARAT HIGH COURT WHEREIN HELD THAT THE CARRY FORWARD OF UNABSORBED D EPRECIATION PERTAINING TO A.Y.2001-02 AND ITS PRIOR ASSESSMENT YEARS CAN B E SET OFF IN SUBSEQUENT YEARS WITHOUT ANY TIME LIMIT. RESPECTFULLY FOLLOWI NG THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT, WE HOLD THAT THE RE IS NO MISTAKE IN THE ORDER OF THE CIT(A), WHICH IS ACCORDINGLY CONFIRMED AND THE GROUND NO.2 OF THE REVENUE IS DISMISSED. 8. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONED HEREINABOVE. SD/- SD/- ( %&' %&' %&' %&'( (( ( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD