ITO, Ward-1(1)(1), Ahmedabad V. M/s. Ambar Protein Industries Ltd., Ahmedabad

ITA 742/AHD/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3800 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 27-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Keywords: Depreciation; Unabsorbed depreciation

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.742/AHD/2017 / ASSTT. YEAR: 2013-14 ITO, WARD - 1(1)(1) AHMEDABAD. VS. M/S.AMBAR PROTEIN INDUSTRIES LTD. PANCHARATNA ESTATE OPP: BHAGYODAYA HO0TEL CHANGODAR AHMEDABAD 380 054. PAN : AABCM 0541 N ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI S.K. DEV, SR.DR ASSESSEE BY : NONE / DATE OF HEARING : 31/01/2019 / DATE OF PRONOUNCEMENT: 4/02/2019 +,/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF THE LD.CIT(A)-12, AHMEDABAD DATED 28.12.2016 PASSED FOR THE ASSTT.YEAR 2013- 14. 2. REVENUE HAS PLEADED THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.5,17,72,276/- WHICH WAS ADDED BY THE AO ON ACCOUNT OF DISALLOWANCE OF CARRY FORWARD UNABSORBED DEPRECIATION. ITA NO.742/AHD/2017 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED ITS RETURN OF INCOME ON 1.10.2013 DECLARING TOTAL LOSS OF RS.38,22,594/- . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSESSMENT AND NOTICE UND ER SECTION 143(2) WAS ISSUED AND SERVED UPON THE ASSESSEE. THE LD.AO HAS DIRECTED THE ASSESSEE TO FURNISH DETAILS OF BROUGHT FORWARD BUSINESS LOSS AN D UNABSORBED DEPRECIATION. IN RESPONSE TO THE QUERY OF THE AO, THE ASSESSEE HA S COMPILED DETAILS IN TABULAR FORM AND SUBMITTED TO THE AO STARTING FROM THE ASSTT.YEAR 1996-97. SUCH DETAILS HAVE BEEN REPRODUCED BY THE AO AT PAGE NO.8 AND 9 OF THE ASSESSMENT ORDER. THE AO THEREAFTER HAS OBSERVED T HAT AFTER AMENDMENT EFFECTED IN SECTION 32(2) OF THE INCOME TAX ACT, 19 61 W.E.F. 1.4.2002, THE CARRY FORWARD UNABSORBED DEPRECIATION COULD NOT BE COMPUTED AFTER EXPIRY OF EIGHT YEARS. HENCE, HE RESTRICTED CARRY FORWARD UNA BSORBED DEPRECIATION AND BUSINESS LOSS TO RS.75,05,867/- AS AGAINST THE CLAI M MADE BY THE ASSESSEE. ON APPEAL, THE LD.CIT(A) DID NOT CONCUR WITH THE VIEW TAKEN BY THE AO. HE OBSERVED THAT FROM THE ASSTT.YEAR 2002-03 BY VIRTUE OF AMENDMENT IN SECTION 32(2), THE DEPRECIATION ON EARLIER YEAR WOULD BECOM E PART OF THE CURRENT YEAR, AND THEREAFTER IT WILL SURVIVE PERENNIALLY ON ACCOU NT OF MERGER WITH THE DEPRECIATION FOR THE ASSTT.YEAR 2002-03. IN OTHER WORDS, UNABSORBED DEPRECIATION PRIOR TO THE ASSTT.YEAR 2002-03 WOULD BECOME DEPRECIATION OF THE ASSTT.YEAR 2002-03, AND THEREAFTER IT WILL BE A VAILABLE TO ASSESSEE ENDLESSLY UPTO AND UNTIL IT IS UTILIZED. IN THIS W AY, THE LD.CIT(A) HAS DIRECTED THE AO TO RECOMPUTE THE SET OFF AND CARRY FORWARD O F UNABSORBED DEPRECIATION ACCORDINGLY. 4. IN RESPONSE TO THE NOTICE OF HEARING, NO ONE HAS COME PRESENT ON BEHALF OF THE ASSESSEE. WITH THE ASSISTANCE OF THE LD.DR, WE HAVE GONE THROUGH THE RECORD. WE FIND THAT VIEW TAKEN BY THE LD.CIT(A) I S IN LINE WITH THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF GENERAL MOTORS LTD. VS. DCIT, 354 ITR 244 (GUJ). HONBLE HIGH COURT HAS DE CIDED THIS APPEAL ON 7 TH ITA NO.742/AHD/2017 3 APRIL, 2015. PUTTING RELIANCE UPON THE DECISIONS O F THE HONBLE JURISDICTIONAL HIGH COURT, WE DO NOT FIND ANY MERIT IN THIS APPEAL OF THE REVENUE. IT IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 4 TH FEBRUARY, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 04/02/2019