The DCIT, Circle-2(1)(1), Ahmedabad V. M/s. Gujarat Lease Finance Ltd., Ahmedabad

ITA 52/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3447 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 06-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A KHAN
• Assessee Lawyers: GM THAKOR; BIREN SHAH
• Keywords: Depreciation; Unabsorbed depreciation; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 52/AHD/2017 (ASSESSMENT YEAR: 2009-10) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 2(1)(1), AHMEDABAD V/S M/S. GUJARAT LEASE FINANCE LTD. 1 ST FLOOR, HASUBHAI CHAMBERS, OPP. TOWN HALL, ASHRAM ROAD, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAACG 8354N APPELLANT BY : SHRI M.S.A. KHAN, CIT/DR RESPONDENT BY: SHRI BIREN SHAH & G.M. THAKOR ( )/ ORDER DATE OF HEARING : 02 -04-201 9 DATE OF PRONOUNCEMENT : 26-04-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE LD. CIT(A)-2, AHMEDABAD DATED 03.10.2016 PERTAINING TO A.Y. 2009-10 AND FOLLOWING GROUNDS HAVE BEEN TAKEN: ITA NO. 52/A HD/2017 . A.Y. 2009-1 0 2 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN D ELETING THE DISALLOWANCE MADE BY THE AO ON ACCOUNT OF CARRIED FORWARD ' UNABSORBE D DEPRECIATION OF RS.38,76,64,533/- OF ASST.YEAR 2000-01 AND RS.18,11 ,02,693/- OF ASST. YEAR 2001- 02 AGGREGATING TO RS.56,87,67,226/- IN ASST. YEAR 2 009-10 WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND THE MATERIAL BROUGHT ON RECORD. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE L D. CIT(A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED TO TH E ABOVE EXTENT. 4. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND, WHICH MAY BE NECESSARY. 2. THE FACTS OF THE CASE ARE THAT IT WAS NOTICED THAT THE ASSESSEE HAD WRONGLY CLAIMED CARRY FORWARD OF LOSSES OF EARLIER YEARS. V ERIFICATION OF COMPUTATION OF INCOME FOR THE ASSESSMENT YEAR 2008-09 REVEALED THA T THE ASSESSEE HAD WRONGLY CARRIED FORWARD UNABSORBED DEPRECIATION OF RS. 3876 64533/- FOR THE ASSESSMENT YEAR 2000-01 TO THE PRESENT ASSESSMENT Y EAR 2009-10. SIMILARLY, THE ASSESSEE HAD WRONGLY CARRIED FORWARD UNABSORBED DEP RECIATION OF RS. 181102693/- FOR THE ASSESSMENT YEAR 2001-02 TO THE PRESENT YEAR 2009-10 AND ASSESSEE CAN CARRY FORWARD UNABSORBED DEPRECIATION UP TO 8 YEARS FROM THE ASSESSMENT YEAR OF UNABSORBED DEPRECIATION AND MADE ADDITION OF RS. 568767226/- IN ASSESSMENT YEAR 2009-10. 3. THEREAFTER, ASSESSEE PREFERRED FIRST STATUTORY APPE AL BEFORE THE LD. CIT(A) WHO PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 4. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMPUGN ED ORDER. AT THE OUTSET, LD. A.R. CITED A JUDGMENT OF HONBLE GUJARAT HIGH C OURT IN THE CASE OF GENERAL MOTORS INDIA (P.) LTD. VS. DCIT [2012] 25 T AXMANN.COM 364 WHEREIN IT IS HELD THAT UNABSORBED DEPRECIATION COULD BE CA RRIED FORWARD AND SET OFF EVEN AFTER A PERIOD OF EIGHT YEARS WITHOUT ANY LIMI T WHATSOEVER IN ACCORDANCE ITA NO. 52/A HD/2017 . A.Y. 2009-1 0 3 WITH SECTION 32(2) AS AMENDED BY FINANCE ACT, 2001 AND GRANTED RELIEF TO THE ASSESSEE. THEREFORE, RESPECTFULLY FOLLOWING THE ABO VE SAID JUDGMENT, WE DISMISS THIS GROUND OF APPEAL OF THE REVENUE. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN OPEN COURT ON 26 - 04- 2019 SD/- SD/- (PRADIP KUMAR KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 26/04/2019 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD