Dy. Commissioner of Income Tax , Circle-2(1), Hyderabad V. Imerys Ceramics India Private Limited, Hyderabad

ITA 663/Hyd/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4134 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 02-06-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 10-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N ESTHER
• Keywords: Capital asset; Depreciation; Unabsorbed depreciation
• Section: 143(3); 115JB; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 663 /HYD/20 1 8 ( ASSESSMENT YEAR : 2014 - 15 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(1), HYDERABAD. ..APPELLANT. VS. IMERYS CERAMICS INDIA PVT. LTD., HYDERABAD. PAN AAACJ 7424Q ..RESPONDENT. APPELLANT BY : S MT. N. ESTHER. (D.R.) RESPONDENT BY : SHRI RAVI BHARADWAJ. DATE OF HEARING : 2.6.2 021. DATE OF PRONOUNCEMENT : 08 .09 . 2021. O R D E R PER S.S. GODARA , J .M. : THIS ASSESSEES APPEAL ARISES FROM THE COMMISSIONER OF INCOME TAX ( APPEALS ) - 8 , HYDERABAD S ORDER DT. 05.01.2018 PASSED IN CASE NO. 0238/CIT(A) - 8/HYD/2016 - 17 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT) . 2 ITA NO. 663 /HYD/201 8 2. THE REVENUE PROPOSES THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL : 1.WHETHER, ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) IS CORRECT IN LAW IN DELETI NG THE ADDITION WHEN THE ASSESSING OFFICER HAS CORRECTLY REDUCED THE ACCUMULATED UNABSORBED DEPRECIATION FROM BOOK PROFIT BEING LESSER THAN THE ACCUMULATED BROUGHT FORWARD LOSS FOR ARRIVING AT MAT ? 2. WHETHER, ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE CIT(A) IS CORRECT IN ACCEPTING THE ASSESSEE'S COMPUTATION WHEREIN ASSESSEE HAS CONSIDERED THE DEPRECIATION OF THE A.YS UPTO 2006 - 07, 2007 - 08 & 2013 - 14 FOR WHICH THERE WAS PROFIT AND NO UNABSORBED DEPRECIATION FOR THREE YEARS WAS AVAILABLE FOR REDUC TION FROM BOOK PROFIT ? 3. BOTH THE LEARNED REPRESENTATIVES NEXT INVITED OUR ATTENTION TO THE CIT(A)S DETAILED DISCUSSION QUA THE IMPUGNED SECTION 115JB COMPUTATION ISSUE AS FOLLOWS : 3 ITA NO. 663 /HYD/201 8 4 ITA NO. 663 /HYD/201 8 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO REVENUES PLEADINGS THAT THE ASSESSING OFFICER HAD CORRECTLY REDUCED THE ACCUMULATED UNABSORBED DEPRECIATION AFTER CONSIDERING THE CORRESPONDING FIGURE S IN ASSESSMENT YEARS 2008 - 09 TO 2012 - 13 5 ITA NO. 663 /HYD/201 8 WHILE PARTLY ACCEPTING THE ASSESSEE'S CLAIM TO THE TUNE OF RS.96,31,928 THEREBY MAKING DISALLOWANCE OF RS.2,99,86,381. WE FIND NO MERIT IN THE INSTANT ARGUMENT. THIS IS FOR THE REASON THAT THE ASSESSING OFFICER HEREIN; WHILE COMPUTING THE ASSESSEE'S CLAIM OF 115JB MAT, COULD NOT BE QUESTION ED CORRECTNESS OF THE BROUGHT FORWARD FIGURE FROM EARLIER ASSESSMENT YEARS AS HELD IN HON'BLE APEX COURT LAND MARK DECISION IN CIT VS. MANMOHAN DAS (1966) 59 ITR 699 (SC); THEIR LORDSHIP HELD THAT A DECISION RECORDED BY THE ITO TO COMPUTE THE L OSS IN THE PREVIOUS YEAR U/S. 24(3) THAT THE LOSS CANNOT BE SET OFF AGAINST ANY OF THE SUBSEQUENT YEAR IS NOT BINDING ON THE ASSESSEE. THE VERY ANALOGY APPL IES IN CASE OF THE SO CALLED ASSESSING OFFICER DEALING WITH SUBSEQUENT YEARS ASSESSMENT AS WELL WHEREIN HE COULD NOT GO BEYOND THE CORRESPONDING CARRIED FORWARD FIGURE S ON THE OPENING DAY OF THE RELEVANT PREVIOUS YEAR. COUPLED WITH THIS, THE CIT(A) HAS ALREADY TAKEN NOTE OF CATENA OF CASE LAWS (SUPRA) IN ASSESSEE'S FAVOUR AND AGAINST 6 ITA NO. 663 /HYD/201 8 THE DEPARTMENT. WE THE REFORE CONCLUDE THAT THE CIT(A) HAS RIGHTLY REVERSED THE ASSESSING OFFICERS ACTION RESTRICTING THE ASSESSEES MAT COMPUTATION CLAIM IN FOREGOING TERMS. 5. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8TH SEPT. , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 08 .09 . 2021. * REDDY GP COPY TO : 1. M/S. IMERYS CERAMICS INDIA PVT. LTD., 1 - 11 - 246/4F & 1 - 11 - 247/D, OPP. CAF BAHAR, NEAR IO PETROL PUMP, BEGUMPET, HYDERABAD - 500 016 2. DCIT, CIRCLE 2(1), HYDERABAD. 3. PR. C I T - 2 , HYDERABAD. 4. CIT(APPEALS) - 8 , HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.