Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (1) TMI 747 - ITAT DELHI

2016 (1) TMI 747 - ITAT DELHI - TMI - Carry forward of unabsorbed depreciation - CIT(A) allowed the claim - grievance of the Revenue appears to be that the application filed by the respondent assessee company is barred by limitation - Held that:- Assessing Officer is duty-bound to intimate the losses which are entitled to be carry forward. If the Assessing Officer fails to do so, the right of the respondent assessee is to carry forward such losses is in no way affected. The right conferred upon .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(A).- Decided against revenue - ITA Nos. 3635, 3636, 3637 & 3638 Del/2010 - Dated:- 30-10-2015 - SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER For The Assessee S/sh. (Dr.) Rakesh Gupta & Somil Aggarwal, Advocates For The Department Sh. B.D. Mishra, CIT(DR) ORDER PER INTURI RAMA RAO, A.M.: The present appeals filed by the Revenue are directed against the order of the learned CIT(A) dated 31.05.2010 passed for the assessment years 2000-01, 2003-04, 2004 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

,74,14,023/- subject to verification of the figures as shown by the assessee company in the chart with the departmental records. ii. The Ld. CIT(A) has failed to appreciated that the order u/s 143(3)/147 dated 16.03.2005 has attained finality has attained finality with the order of Ld. CIT(A)-XVI, New Delhi, dated 23.12.2005 upholding the action of AO. iii. The appellant craves to be allowed to add, any fresh grounds of appeal and/or deleted of amend any of the grounds of appeal. 2. For the sake .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed income. Subsequently, pursuant to the application made under section 154 of the Act dated 4th July, 2003, the Assessing Officer had quantified the brought forward business losses of ₹ 29,87,04,563/- and unabsorbed depreciation of ₹ 4,91,27,891/- vide order dated 4th December, 2003. Thereafter, pursuant to the re-assessment notice under Section 148 of the Act, the reassessment proceedings were completed vide order dated 143(3) r.w.s. 147 of the Act vide order dated 16th March, 2005 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ification of this mistake and this application was dismissed by the Assessing Officer vide his order dated 23rd March, 2009 on the ground that the issue of quantification of brought forward unabsorbed depreciation was not the subject matter of consequential order dated 16th March, 2005. Therefore, the application dated 5th February, 2009 is barred by limitation. Being aggrieved, an appeal was filed before the learned CIT(A) who vide order dated 31st March, 2010 following the decision of Punjab & .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ouncements on the issue. The only dispute involved which has to be adjudicated is whether the carry forward of un absorbed depreciation is to be for an amount of ₹ 4,91,27,891/- as granted by A.O. or for an amount of ₹ 12,74, 14,023/- claimed by the appellant. 3.1 The A.O. has given following two reasons in the assessment order for not accepting the claim of assessee. i) the issue of carry forward of unabsorbed depreciation was not the subject matter of the order dated 16-03-2005 pas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ich the A.O. ought to have carried forward in terms of mandate of section 32(2) of the Act ,itself, even without any application from the assessee side. ii) In any case, since the assessee had made an application in this regard, all the more it was necessary for A.O. to allow the correct amount of carry forward of unabsorbed depreciation. 3.2. It is seen that vide order passed u/s 250/143(3) dated 11.06.2002 for A.Y.1998-99 the A.D has granted carry forward of un absorbed depreciation and of los .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sorbed depreciation of ₹ 12, 74,14,023/-. Thus, the amount of carry forward allowed on account of carry forward of unabsorbed depreciation in A.Y. 1999-2000 and the amount brought forward on account of unabsorbed depreciation in A.Y. 2000-01 was for ₹ 12,7 4,14,023/-. The A. O. is always at liberty to verify, whether this figure is correct and he can duly reconcile it with the assessment records of the past years. Further, it is noted that Exp. 5 of Section 32 reads as under:- " .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y bound to grant the carry forward of unabsorbed depreciation at correct amount as per law which has been claimed at ₹ 12,74, 14,203/- and which can be further cross verified by AO from the assessment records. 3.5 The other reason given by the AO was that since, the application dated 05-02-2009 was filed after the expiry of period of four years and therfore the claim of assessee was time barred. In this regard, the Appellant has relied upon the Judgment of Delhi High Court in the case of C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rs passed by the AO i.e. order dated 20-06-2006 and application filed dated 05-02-2009 and therefore in view of the above said judgment, the application of appellant cannot be held to be barred by limitation. Considering the facts of the case and the settled position of law, I direct the A.O to allow the carry forward of unabsorbed depreciation of ₹ 12,74,14,023/- subject to verification of the figures as shown by the appellant company in the chart with the departmental records. As a resul .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sment of the total income of any assessee, it is established that a loss has taken place which the assessee is entitled to have carried forward and set off under the provisions of sub-section (1) of section 72, sub-section (2) of section 73, sub-section (1) or sub-section (3) of section 74 or sub-section (3) of section 74A, the Assessing Officer shall notify to the assessee by an order in writing the amount of the loss as computed by him for the purposes of sub-section (1) of section 72, sub-sec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version