Eriabarie Films & Foils Pvt. Ltd. , Kolkata V. ITO, Ward 10(2), Kolkata

ITSSA 30/KOL/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3698 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 29-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 28-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 143(3); 14A; 250; 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member I.T(SS)A. No.30/Kol/2021 Assessment Year: 2008-09 Eriabarie Films and Foils Pvt. Ltd. ...........................................................Appellant Vasundhara, 5 th Floor, 2/7, Sarat Bose Road, Kolkata - 700020. [PAN:AAACE5343D] vs. DCIT, Central Circle-1, Kolkata..........................................................Respondent Appearances by: Shri P.J. Bhide, FCA, appeared on behalf of the appellant. Shri Deba Kr. Sonowal, CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : June 30, 2022 Date of pronouncing the order : June 30, 2022 ORDER Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 29.09.2021 of the Commissioner of Income Tax-21, Kolkata [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The sole dispute raised in this appeal is relating to the action of the Assessing Officer in not allowing carried forward business loss and unabsorbed depreciation amounting to Rs.10,16,945/- brought forward from earlier assessment year 2007-08. 3. At the outset, the ld. Counsel for the assessee has invited our attention to the original assessment order dated 15.12.2009 for assessment year 2007-08 to submit that the assessee in its return of income had claimed business loss and depreciation of Rs.10,16,945/-. Though the Assessing Officer had made certain disallowances relating to bad debts, interest, capital gains and disallowance u/s 14A of the Act, however, the Assessing Officer did not dispute about the claim of loss and depreciation. As per counsel, since the same was not disallowed, therefore, the carry forward of loss and unabsorbed depreciation to next year i.e. assessment year 2008-09 was deemed to be accepted. The ld. Counsel has further submitted that in relation to other disallowances, the assessee had filed appeal before the higher authorities and the matter relating to said I.T(SS)A. No.30/Kol/2021 Assessment Year: 2008-09 Eriabarie Films and Foils Pvt. Ltd. 2 disallowances have been adjudicated by the Tribunal. However, there was no dispute raised at any appellate stage regarding the claim of loss and depreciation for the assessment year 2007-08 which the assessee carried forward to assessment year 2008-09. The ld. Counsel has further invited our attention to the assessment order dated 31.03.2014 for assessment year 2007-08 passed u/s 153C r.w. section 143(3) of the Act to submit that pursuant to the aforesaid original assessment order dated 15.12.2009, the assessment proceedings were carried out in the case of the assessee for assessment year 2007-08 u/s 153C of the Act also, wherein, the Assessing Officer has specifically mentioned in the computation given in the assessment order, the loss from business at Rs.10,15,628/- which the assessee has carried forward for the assessment year under consideration i.e. A.Y 2008-09. However, the Assessing Officer vide the impugned assessment order of the same date i.e. 31.03.2014 for assessment year 2008-09 has disallowed the aforesaid carried forward business loss and depreciation for want of requisite details. 4. When the Assessing Officer himself has determined vide order of the same date i.e. 31.03.2014, the business loss of Rs.10,15,628/- for assessment year 2007-08, then there was no reason to the Assessing Officer to disallow the said carried forward loss in the assessment order for subsequent assessment year 2008-09 on the totally false pretext of want of requisite details. The action of the Assessing Officer is not justified at all. In view of this, the impugned disallowance made by the Assessing Officer relating to carried forward business loss and depreciation is set aside and the Assessing Officer is directed to allow the business loss and depreciation as carried forward from assessment year 2007-08. 5. In the result, the appeal of the assessee stands allowed. Kolkata, the 30 th June, 2022. Sd/- Sd/- [Girish Agrawal] [Sanjay Garg] Accountant Member Judicial Member Dated: 30.06.2022. RS I.T(SS)A. No.30/Kol/2021 Assessment Year: 2008-09 Eriabarie Films and Foils Pvt. Ltd. 3 Copy of the order forwarded to: 1. Eriabarie Films and Foils Pvt. Ltd. 2. DCIT, Central Circle-1, Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches