M/s Chinatrust Commercial Bank, New Delhi V. ADIT, New Delhi

ITA 6058/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0317 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 30-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Opportunity of being heard; Unabsorbed depreciation
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, NEW DELHI, BENCH B NEW DELHI, BENCH B NEW DELHI, BENCH B NEW DELHI, BENCH B BEFORE SHRI R. P. TOLANI, JUDICIAL MEMBER AND SHRI K. D. RANJAN, ACCOUTANT MEMBER ITA NO. 6058 /DEL/2010 (ASSESSMENT YEAR 2007-08 ) M/S. CHINATRUST COMMERCIAL BANK, VS. ADIT, CIRCLE 1(1), A-1/16, WENGER HOUSE, NEW DELHI. RAJEEV CHOWK, CONNAUGHT PLACE, NEW DELHI-110 001 (APPELLANTS) (RESPONDENTS) PAN / GIR NO. AAACC4000B APPELLANT BY: SHRI PANKAJ KHANNA, ADV. RESPONDENT BY: SHRI SUDESH GARG, SR. DR ORDER ORDER ORDER ORDER PER K. D. RANJAN, AM PER K. D. RANJAN, AM PER K. D. RANJAN, AM PER K. D. RANJAN, AM: :: : 1. THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT Y EAR 2007-08 ARISES OUT OF THE ORDER U/S 143(3) READ WITH SECTIO N 144C OF THE ACT. THE ONLY ISSUE FOR CONSIDERATION RELATES TO NOT ALL OWING SET OFF OF BROUGHT FORWARD DEPRECIATION AS CLAIMED IN THE RETU RN OF INCOME. THE FACTS STATED IN BRIEF ARE THAT THE ASSESSEE CLA IMED SET OFF OF BROUGHT FORWARD LOSSES OF UNABSORBED DEPRECIATION I N THE RETURN OF INCOME. THE ASSESSEE RAISED OBJECTION BEFORE DRP I N RESPECT OF VARIOUS ADDITION PROPOSED TO BE MADE BY THE A.O. F IRST SUCH ISSUE RELATES TO SETTING OFF OF BROUGHT FORWARD LOSSES AN D DEPRECIATION. DRP IN ITS ORDER DIRECTED THE A.O. TO VERIFY THE FA CTS AND ALLOW BROUGHT FORWARD LOSSES AND DEPRECIATION AS PER THE PROVISIONS OF LAW. IN PURSUANCE TO DIRECTION ISSUED BY DRP, THE A.O. ASKED THE ASSESSEE TO FILE THE DETAILS OF BROUGHT FORWARD LOS SES AND DEPRECIATION. SINCE THE DETAILS WERE NOT FILED, TH E A.O. DISALLOWED THE CLAIM OF THE ASSESSEE IN RESPECT OF BOTH THE IT EMS. 2. BEFORE US, IT HAS BEEN PLEADED THAT THE A.O. HAD NOT FOLLOWED THE DIRECTION OF DRP. IN ITS APPLICATION FOR ADJOU RNMENT, IT HAS BEEN I.T.A. NO. 6058/DEL/2010 2/2 SUBMITTED THAT THE ASSESSEE HAD MOVED APPLICATION U /S 154 FOR RECTIFICATION OF THE ASSESSMENT. THE APPLICATION F OR ADJOURNMENT SOUGHT BY THE ASSESSEE WAS REJECTED AND THE APPEAL IS HEARD ON MERITS. 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE MATERIAL ON RECORD. THE A.O. HAS NOT ALLOWED SET O FF OF BROUGHT FORWARD LOSSES AND DEPRECATION ON THE GROUND THAT A SSESSEE HAD NOT FILED REQUISITE DETAILS. THE ASSESSEE HAD FILED AP PLICATION U/S 154 FOR RECTIFICATION OF THE ASSESSMENT. UNDER THESE CIRCU MSTANCES, IN OUR CONSIDERED OPINION, THE ISSUE IS TO BE SET ASIDE TO THE FILE OF THE A.O. WITH THE DIRECTION TO CONSIDER THE CLAIM OF THE ASS ESSEE FOR SET OFF OF BROUGHT FORWARD LOSSES AND DEPRECIATION AS PER THE PROVISIONS OF LAW. NEEDLESS TO SAY THE A.O. WILL PROVIDE NECESSA RY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE DECIDING THE ISS UE. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. ORDER PRONOUNCED IN THE OPEN COURT ON CLOSE OF H EARING ON 08 TH MARCH 2011. SD./- SD./- (R. P. TOLANI) (K. D. RANJAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED:08 TH MAR., 2011 SP. COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT TRUE COPY: BY ORDER 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI