Gopalakrishna Textile Mills Private Limited, Bangalore V. ACIT, Bangalore

ITA 85/BANG/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 5255 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 06-05-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 27-01-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V S SREELEKHA
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 115JB; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.85/BANG/2010 ASSESSMENT YEAR : 2005-06 GOPALAKRISHNA TEXTILE MILLS PVT. LTD., SUDHAMA HOUSE, CHICKPET, BANGALORE 560 053. : APPELLANT VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 11(3), BANGALORE. : RESPONDENT APPELLANT BY : SHRI SACHIN MEHTA, C.A. RESPONDENT BY : SMT. V.S. SREELEKHA, ADDL. CIT(DR) O R D E R PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER THIS APPEAL OF THE ASSESSEE COMPANY IS DIRECTED AGA INST THE ORDER OF THE CIT(A)-I, BANGALORE IN ITA NO:7/DC 11(3)/CIT (A)-I/08-09 DATED: 11.11.2009 FOR THE ASSESSMENT YEAR 2005-06. 2. THE ONLY GROUND RAISED BY THE ASSESSEE COMPANY IN ITS GROUNDS OF APPEAL IS THAT THE CIT(A) ERRED IN NOT ALLOWING THE CLAIM OF DEDU CTION OF RS.34.31 LAKHS FROM THE BOOK PROFITS U/S 115JB OF T HE ACT IN RESPECT OF ITA NO.85/BANG/10 PAGE 2 OF 4 UNABSORBED LOSS/DEPRECIATION AND INSTEAD ALLOWED RS .8.30 LAKHS AS DETERMINED BY THE AO. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, W HILE EXAMINING THE DETAILS FURNISHED BY THE ASSESSEE, AMONG OTHERS, TH E AO HAD OBSERVED THAT [ON PAGE 2].FURTHER, THE ASSESSEE COMPANY H AD SET OFF CARRY FORWARD LOSSES OF RS.34,31,288/-. AS VER IFIED FROM THE PREVIOUS YEARS RETURN OF INCOME AND AFTER REWORKIN G OF CARRY FORWARD LOSSES THE ASSESSEE COMPANY IS ELIGIBLE TO SET OFF OF DEPRECIATION LOSS OF RS.8,30,388/- INSTEAD OF RS.34,31,288/-. 4. AGGRIEVED, THE ASSESSEE COMPANY CARRIED THE ISSU E BEFORE THE CIT(A) FOR REMEDY. AFTER CONSIDERING THE ASSESSEE S CONTENTIONS AND ALSO APPRAISAL OF THE REMAND REPORT OF THE AO, THE LD. CIT(A) WAS OF THE VIEW THAT 5..I FIND THE APPROPRIATE APPRECIATION OF FACTS AS WELL AS OF LAW IN ALLOWANCE OF RS.8,30,388/- AS SET OFF OF DEP RECIATION LOSS CARRIED FORWARD AND, ACCORDINGLY, DISMISSED THE ASSESSEES PLEA ON THIS COUNT. 5. AGITATED, THE ASSESSEE COMPANY PREFERRED AN APPE AL AGAINST THE FINDING OF THE CIT(A). SIMULTANEOUSLY, THE ASSESSE E COMPANY ALSO FILED A MISCELLANEOUS PETITION DATED 11.1.2010 BEFORE THE CIT (A) WITH A PLEA THAT 1. GROUNDS OF APPEAL RELATING TO THE COMPUTATION O F BROUGHT FORWARD LOSSES OR UNABSORBED DEPRECIATION AS PER BOOKS OF A CCOUNT WAS REMANDED TO THE ASSESSING OFFICER. ON RECEIPT OF T HE REMAND REPORT, THE ASSESSEE COMPANY FILED WRITTEN SUBMISSIONS ON T HE SAME VIDE LETTER DATED: 22.10.09. 2. THE PLAN READING OF THE APPELLATE ORDER INDICATE S THAT THE WRITTEN SUBMISSION REFERRED ABOVE HAS NOT BEEN CONSIDERED. IF THE WRITTEN SUBMISSION IS CONSIDERED, THEN THE APPEAL NEEDS TO BE ALLOWED. ITA NO.85/BANG/10 PAGE 3 OF 4 5.1. THE LD. CIT(A)-I, BANGALORE VIDE MP NO.6/AC-11(3)/A -I/08-09 DATED 15.2.2010, HAD DISPOSED OFF THE MISC. PETITION BY DIRECTING THE ASSESSING OFFICER TO GO THROUGH THE DETAILS AND ALLOW RELIEF AFTER VERIFICATION OF THE CLAIMS. 6. DURING THE COURSE OF HEARING, THE LD. A R DREW T HE ATTENTION OF THIS BENCH TO THE EFFECT THAT THE LD. CIT(A) HAD , VIDE HIS ORDER ON MISC. PETITION REFERRED SUPRA, DIRECTED THE AO TO GO THROUGH THE D ETAILS AND ALLOW RELIEF AFTER VERIFICATION OF THE CLAIM ETC., AND PLEADED T HAT THE ASSESSEE COMPANY BE PERMITTED TO WITHDRAW THE PRESENT APPEAL FILED A GAINST THE ORDER OF THE CIT(A) U/S 250 OF THE ACT. 6.1. THE LD. D R PRESENT WAS HEARD. 7. CONSIDERING THE SUBMISSION MADE BY THE LD. A.R O N THE FACTS OF THE ISSUE, THE ASSESSEE COMPANY WAS PERMITTED TO WITHDR AW ITS PRESENT APPEAL. 8. IN THE RESULT, THE ASSESSEES APPEAL IS DISMISSED AS WITHDRAWN. PRONOUNCED IN THE OPEN COURT ON THIS 11 TH DAY OF JUNE, 2010. SD/- SD/- ( GEORGE GEORGE K. ) (A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 11 TH JUNE, 2010. DS/- ITA NO.85/BANG/10 PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE (1+1) BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.