Igarashi Motors Ltd., CHENNAI V. ACIT, CHENNAI

ITA 889/CHNY/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5156 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 28-04-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 02-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR ITA CO
• Assessee Lawyers: T BANUSEKAR
• Keywords: Depreciation; Assessment record; Unabsorbed depreciation
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH B : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] I.T.A NO.1636/MDS/2007 ASSESSMENT YEAR : 2003-04 THE ACIT COMPANY CIRCLE II(3) CHENNAI VS M/S IGARASHI MOTORS INDIA LTD PLOT B-12, MEPZ TAMBARAM CHENNAI 600 045 [PAN AAACC1305R ] (APPELLANT) (RESPONDENT) C.O.NO.92/MDS/07 ASSESSMENT YEAR : 2003-04 M/S IGARASHI MOTORS INDIA LTD PLOT B-12, MEPZ TAMBARAM CHENNAI 600 045 VS THE ACIT COMPANY CIRCLE II(3) CHENNAI (CROSS OBJECTOR) (RESPONDENT) I.T.A NO.889/MDS/2009 ASSESSMENT YEAR : 2004-05 M/S IGARASHI MOTORS INDIA LTD PLOT B-12, MEPZ TAMBARAM CHENNAI 600 045 VS THE ACIT COMPANY CIRCLE II(3) CHENNAI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI T. BANUSEKAR DEPARTMENT BY : SHRI K.E.B RENGARAJAN, JR. STANDING COUNSEL ITA 1636/07 CO 92/07 & ITA 889/09 :- 2 -: O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: FOR ASSESSMENT YEAR 2003-04, THE REVENUE IS IN APPEAL AND THE ASSESSEE HAS FILED CROSS OBJECTION AGAINST THE ORDER OF THE LD. CIT(A), CHENNAI, DATED 31.1.2007. FOR ASSESSMENT Y EAR 2004-05, THE ASSESSEE IS IN APPEAL AGAINST THE ORDER DATED 31.3. 2009 OF THE LD. CIT PASSED U/S 263 OF THE ACT. A COMMON ISSUE RELA TING TO ALLOWANCE OF SET OFF OF THE CORRECT BUSINESS LOSS AND UNABSORBED DEPRECIATION BROUGHT FORWARD FROM EARLIER ASSESSMENT YEARS AGAIN ST INCOME OF THE ASSESSMENT YEARS UNDER CONSIDERATION AFTER DUE VERI FICATION OF THE ASSESSMENT RECORDS AS TO HOW MUCH THE ACTUAL CARRY FORWARD DEPRECIATION LOSS AS FINALLY ASCERTAINED AS ON THE DATE OF MODIFICATION ORDER, IS INVOLVED, IN THESE MATTERS, INTER ALIA, T HEREFORE, FOR THE SAKE OF CONVENIENCE AND BREVITY, WE ARE PROCEEDING TO DE CIDE THEM BY A COMMON ORDER. 2. IT WAS BROUGHT TO OUR NOTICE THAT THE MAIN ASSES SMENT YEAR IN WHICH DETAILS OF SUCH BUSINESS LOSS AND UNABSORBED DEPRECIATION BROUGHT FORWARD IS ALSO AN ISSUE INVOLVED IN ASSESS MENT YEAR 2002-03 WHICH IS PENDING BEFORE THE LD. CIT(A) . IT WAS SU BMITTED THAT WITHOUT ASCERTAINING THE EXACT BUSINESS LOSS AND BROUGHT FO RWARD DEPRECIATION ITA 1636/07 CO 92/07 & ITA 889/09 :- 3 -: IN ASSESSMENT YEAR 2002-03 WHICH HAS A BEARING ON A LL THESE MATTERS, IT WILL NOT BE POSSIBLE TO FINALLY SETTLE THE ISSUE S INVOLVED IN THE APPEALS AS WELL AS THE CROSS OBJECTION. BOTH THE PARTIES W ERE AGREEABLE TO THE ABOVE MENTIONED FACTS. IN THE CIRCUMSTANCES MENTIO NED ABOVE, WE ARE OF THE OPINION THAT IT WOULD BE PROPER TO RESTO RE THE ISSUES INVOLVED IN ASSESSMENT YEAR 2003-04 TO THE FILE OF THE LD. CIT(A) WITH A DIRECTION THAT HE SHALL CONJOINTLY CONSIDER THESE C ASES ALONGWITH THE ASSESSMENT YEAR 2002-03 WHICH IS PENDING IN APPEAL BEFORE HIM WE ARE ALSO CONVINCED BY THIS PROPOSITION OF THE PARTI ES AND CONSEQUENTLY, WE RESTORE THE ISSUES RELATING TO ASSESSMENT YEAR 2 003-04 TO THE FILE OF THE LD. CIT(A) TO DECIDE THEM AFRESH IN THE LIGHT O F THE DECISION BEING TAKEN FOR ASSESSMENT YEAR 2002-03. 3. AS REGARDS THE ISSUES INVOLVED IN ASSESSEES APPE AL FOR ASSESSMENT YEAR 2004-05, WE RESTORE THE SAME TO THE FILE OF THE LD. CIT FOR DECIDING AFRESH IN THE LIGHT OF THE CHANGED FACTS FOR ASSESSMENT YEAR 2002-03 WHICH HAVE A BEARING ON THE ASSESSMENT ORDER FOR ASSESSMENT YEAR 2004-05. ITA 1636/07 CO 92/07 & ITA 889/09 :- 4 -: 4. IN THE RESULT, APPEAL OF THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE FOR ASSESSMENT YEAR 2003-04; AND APPEA L OF THE ASSESSEE FOR ASSESSMENT YEAR 2004-05 STAND ALLOWED FOR STATI STICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 28.4 .2011 SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 28 TH APRIL, 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR