RAMA NEWSPRINT AND PAPERS LTD, MUMBAI V. DCIT CIR 3(3), MUMBAI

ITA 4145/MUM/2013

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1260 (ITAT-MUMBAI)
• Duration Of Justice: 6 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 23-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J SARAVANAN
• Assessee Lawyers: NARAYAN ATUL
• Keywords: Depreciation; Unabsorbed depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D , BENCH MUMBAI BEFORE SHRI M.BALAGANESH, AM & SHRI RAM LAL NEGI, J M ITA NO. 4145 /MUM/201 3 ( ASSESSMENT YEAR : 2008 - 09 ) M/S. RAMA NEWSPRINT AND PAPERS LTD. CHANDRAMUKHI BUILDING, 8 TH FLOOR, B - BLOCK R - GOENKA MARG, NARIMAN POINT, MUMBAI 400 020 VS. DCIT, CIRCLE 3(3) AAYAKAR BHAVAN 6 TH FLOOR, MK ROAD MUMBAI 400 020 PAN/GIR NO. AAACR2499H (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY SHRI NARAYAN ATUL REVENUE BY SHRI J SARAVANAN DATE OF HEARING 27 / 08 /2019 DATE OF PRONOUNCEMENT 04 / 09 /2019 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 4145/MUM/2013 FOR A.Y. 2008 - 09 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 7, MUMBAI IN APPEAL NO. CIT(A) - 7/DC IT - 3(3)/IT - 9310 - 11 DATED 27/12/2012 (LD. CIT(A) IN SHORT) AGAINST THE ORDER OF ASSESSMENT PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) DATED 24/05/2010 BY THE LD. DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(3), MUMBAI (HEREIN AFTER REFERRED TO AS LD. AO). ITA NO. 4145/MUM/2013 M/S. RAMA NEWSPRINT AND PAPERS LTD., 2 2. THE SHORT ISSUE THAT ARISES FOR OUR CONSIDERATION IS AS TO WHETHER ASSESSEE IS ELIGIBLE FOR SET OFF OF LOWER OF BROUGHT FORWARD BUSINESS LOSSES OR UNABSORBED DEPRECIATION AS PER BOOKS OF ACCOUNTS IN ACCORDANCE WITH CLAUSE - ( III ) OF EXPLANATION( 1 ) OF SECTION 115JB(2) OF THE ACT. THE INTERCONNECTED ISSUE INVOLVED THEREIN IS AS TO WHETHER THE DEFERRED TAX ASSET CREATED BY THE ASSESSEE IN ITS BALANCE SHEET AS PER THE ACCOUNTING STANDARD - 22 (AS - 22) ISSUED BY THE INSTITUTE OF CHART ERED ACCOUNTANTS OF INDIA ( ICAI ) COULD BE CONSTRUED AS PART OF ACCUMULATED LOSSES AS PER BOOKS OF ACCOUNTS AND CONSEQUENTLY AVAILABLE FOR SET OFF AGAINST BOOK PROFITS COMPUTED IN THE MANNER PROVIDED U/S.115JB OF THE ACT. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD INCLUDING THE PAPER BOOK FILED BY THE ASSESSEE. WE HAVE ALSO GONE THROUGH THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.3.2008 OF THE ASSESSEE. WE FIND FROM THE AUDITED FINANCIAL STATEMENTS FOR THE YE AR ENDED 31.3.2008 OF THE ASSESSEE THAT , THE ASSESSEE HAS REPORTED NET PROFIT (AFTER REDUCING FRINGE BENEFIT TAX) FOR THE YEAR IN THE SUM OF RS.161.70 LAKHS. WE FIND THAT ASSESSEE HAS GOT SUFFICIENT AMOUNTS IN THE DEFERRED TAX ASSET CREATED ON ACCOUNT OF U NABSORBED DEPRECIATION, UNABSORBED BUSINESS LOSS , AMONG OTHERS. THE LD. AO WHILE FRAMING THE ASSESSMENT F OR THE YEAR UNDER CONSIDERATION HAD NOT CONSIDERED THE DEFERRED TAX ASSET AS A PART OF ACCUMULATED LOSS AS PER BOOKS OF ACCOUNT. THE LD. AR PLACED ON RECORD THE ORDER PASSED BY THE LD. AO U/S.143(3) R.W.S. 254 OF THE ACT DATED 13/12/2018 FOR THE A.Y.2007 - 08 WHEREIN THE LD. AO HAD CATEGORICALLY RECORDED A FINDING THAT DEFERRED TAX ASSET HAS INDEED BEEN CREATED BY THE ASSESSEE IN EARLIER YEARS OUT OF ACCU MULATED BOOK LOSSES. IN VIEW OF THIS ORDER PASSED FOR THE A.Y.2007 - 08 BY THE LD. AO, WE DEEM IT FIT AND APPROPRIATE , TO REMAND TH E ISSUE IN DISPUTE BEFORE US BACK TO THE FILE OF THE LD. AO TO DECIDE THE SAME IN THE LIGHT OF THE ORDER PASSED BY HIM FOR A.Y. 2007 - 08 VIDE ORDER DATED ITA NO. 4145/MUM/2013 M/S. RAMA NEWSPRINT AND PAPERS LTD., 3 13/12/2018. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER DICTATED IN THE OPEN COURT ON 27 / 08 /201 9 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 04 / 09 / 2019 SD/ - ( RAM LAL NEGI ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 04 / 09 /2019 KARUNA , SR.PS COPY OF TH E ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//