ACIT 10(1), MUMBAI V. MAHARASHTRA STATE POWER GENERATION CO.LTD, MUMBAI

ITA 4720/MUM/2012

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6729 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-02-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 16-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AWONGSHI GIMSON
• Keywords: Depreciation; Revised return; Unabsorbed depreciation
• Section: 143(3)

Judgement Text

, INCOME-TAX APPELLATE TRIBUNAL -DBENCH MUMBAI , . . , BEFORE S/SH.RAJENDRA,ACCOUNTANT MEMBER AND C. N. PRASAD,JUDICIAL MEMBER ./I.T.A./4720/MUM/2012, /ASSESSMENT YEAR: 2006-07 DCIT 10(1), R NO.432, 4 TH FLOOR, AAYAKAR BHAVAN, M K ROAD, MUMBAI 400 020 VS. MAHARASHTRA STATE POWER GENERATION CO. LTD. PLOT NO.G-19, PRAKASH GHAD, ANANT KANEKAR MARG, STATION ROAD, BANDRA (E), MUMBAI 400 051 PAN : AAECM2935R ( /APPELLANT ) ( / RESPONDENT ) / REVENUE BY: SHRI AWONGSHI GIMSON-CIT-DR /ASSESSEE BY: SHRI NIRAJ SHETH / DATE OF HEARING: 14/06/2018 / DATE OF PRONOUNCEMENT: 27/06/2018 , / PER RAJENDRA A.M. - CHALLENGING THE ORDER,DATED 24/04/2012 OF CIT(A)-21 , MUMBAI, THE ASSESSING OFFICER (AO) HAS FILED THE PRESENT APPEAL.ASSESSEE - COMPANY IS ENGAGED IN THE BUSINESS OF GENERATION OF ELECTRICITY. IT FILED RETURN OF INCOME ON 30/11/200 5, DECLARING INCOME AT RS NIL.REVISED RETURN WAS FILED ON 02/08/2007,DECLARING TOTAL INCOME AS N IL. LATER ON THE INCOME OF THE ASSESSEE WAS ASSESSED AT RS 625.88 CRORES ,U/S. 143(3) OF TH E ACT. BRIEF FACTS: 2. EFFECTIVE GROUND OF APPEAL IS DELETING THE PENALTY IMPOSED BY THE AO U/S.271(1)(C ) OF THE ACT.DURING THE ASSESSMENT PROCEEDINGS,THE AO FOUND THAT THE ASSESSEE HAD CLAIMED SET OFF OF BROUGHT FORWARD LOSSES AND UNABSORBED DEPRECIATION OF RS.623,47,43,689/-,THAT IN THE REVISED RETURN IT CLAIMED SET OFF OF BROUGHT FORWARD LOSSES AMOUNTING TO RS.288.90 CRORES,THAT THE ASSESSEE STATED THAT THE RETURN OF INCOME WAS BEING REVISED AS THE ORIGINAL RETURN OF INCOME WAS FILED ON THE BASIS OF UNAUDITED ACCOUNTS, THAT THE DIFFERENCE IN TOTAL INCOME (BEFORE SET OFF OF BROUGHT FORWARD LOSSES AND UNABSORBED DEPRECIATI ON) IN ORIGINAL AND REVISED RETURN WAS AT RS.334.57 CRORES.WHILE COMPLETING THE ASSESSMENT OR DER,THE AO MADE ADDITION OF RS.334.57 CRORES, BESIDES INITIATING PENALTY PROCEEDINGS U/S. 271 (L ) (C)OF THE ACT. 3. IT WAS BROUGHT TO OUR NOTICE THAT IN THE QUANTUM AP PEAL THE FIRST APPELLATE AUTHORITY(FAA) HAD DELETED THE ADDITIONS MADE BY THE AO,THAT THE T RIBUNAL HAD CONFIRMED THE ORDER OF THE FAA(ITA NO.302/MUM/2010 AND ITA NO.418/MUM/2010 DAT ED 3/3/2017). 4720/M/12 MSPGCL 2 WE FIND THAT AT PARAGRAPH NO.14 (PAGE 33 AND 34 OF THE ORDER OF THE TRIBUNAL )THE TRIBUNAL HAD UPHELD THE ORDER OF THE AO,WHO HAD DELETED THE ADDITIONS MADE BY THE AO,AS STATED EARLIER. AS THE ADDITIONS MADE BY THE AO IN THE QUA NTUM PROCEEDINGS HAVE BEEN DELETED BY THE FAA AND HIS ORDER HAS BEEN CONFIRMED BY THE TRI BUNAL,SO,THE PENALTY WOULD NOT SURVIVE. EFFECTIVE GROUND OF APPEAL IS DECIDED AGAINST THE AO. AS A RESULT, APPEAL FILED BY THE AO STANDS DISM ISSED. !'#$%&' . ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH JUNE, 2018. ($ 27 , 2018 SD/- SD/- ( . . / C.N.PRASAD ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED : 27.06.2018. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR B BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.