Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

J.K. Lakshmi Cement Ltd. Versus Commissioner of Income Tax

Disallowance of depreciation to be carried forward - revision u/s 263 as the issue of unabsorbed depreciation has not been examined by AO as wrongly allowed to be carried forward by the order of AO - Held that:- As decided in the case of General Motors India (P) Ltd. vs. DCIT [2012 (8) TMI 714 - GUJARAT HIGH COURT ] any unabsorbed depreciation available to an assessee on 1st day of April 2002 (A.Y. 2002-03) will be dealt with in accordance with the provisions of section 32(2) as amended by Finan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

years, without any limit whatsoever

In this view of the matter, we find that the order passed by Assessing Officer is not erroneous and prejudicial to the interest of revenue. In this view of the matter, we reverse the order of Ld. CIT passed u/s. 263 - Decided in favour of assessee - ITA No. 1513/Kol/2011 - Dated:- 5-2-2016 - N. V. Vasusdevan, JM And Waseem Ahmed, AM For the Appellants : Shri Siddharth Jhajharia, FCA & Shri Sajay Sen, AR For the Respondent : Shri Sandeep Chaube, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n confirming the assessment order of Assessing Officer by disallowing the depreciation for an amount of ₹ 228,77,86,812/- to be carried forward. 3. Facts of the case are that assessee is a Limited Company is engaged in business of manufacturing and sale of cement. Assessee has shown unabsorbed depreciation amounting to ₹ 228,77,86,812/- in the year under consideration. This depreciation pertains to AY beginning from AY 1992-93 to 2001-02. As per the law unabsorbed depreciation can be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o 2001-02 have been claimed by assessee. Besides the above, assessee submitted that AO in his order for relevant to AY 2007-08 has already held that unabsorbed depreciation pertaining to assessment year beginning from 1992-93 to 2001-02 for an amount of ₹ 228,77,86,812/- not available to be carried forward. However, assessee has gone in appeal before Ld. CIT(A) against the assessment order which is sub judice. In view of above, assessee submitted that the issue of unabsorbed depreciation w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

992-93 to 2001-02 was wrongly allowed to be carried forward by the order of AO because as per the provision u/s 32 sub-section 2 of the Act became effective only from 01.04.2002 and unabsorbed depreciation of ₹ 228,77,86,812.00 pertains to AY prior to the amendment in the IT Act. Accordingly, Ld. CIT held that the order of AO is erroneous and prejudicial to the interest of revenue. Hence, the order of the AO was set aside with a direction to pass afresh order in the light of above discussi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ied on the order passed by AO whereas Ld. DR relied on the order passed by Ld. CIT. From the aforesaid discussion, we find that assessee's claim of unabsorbed depreciation pertaining to AYs beginning from 1992-93 to 2001-02 for an amount of ₹ 228,77,86,812/- which was allowed to be carried forward by AO in his order for the relevant AY i.e. 2007- 08 but Ld. CIT found that unabsorbed depreciation was not allowable to be carried forward for a period more than 8 years. Therefore, Ld. CIT .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the provisions of section 32(2) as it stood before the said amendment. Had the intention of the Legislature been to allow the unabsorbed depreciation allowance worked out in A.Y 1997-98 only for eight subsequent assessment years even after the amendment of section 32(2) by Finance Act, 2001 it would have incorporated a provision to that effect. However, it does not contain any such provision. Therefore, the provisions of section 32(2) as amended by Finance Act, 2001 would allow the unabsorbed de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the profits of that business, then such excess comes for absorption from the profits and gains from any other business or business, if any, carried on by the assessee. If a balance is left even thereafter, that becomes deductible from out of income from any source under any of the other heads of income during that year. In case there is a still balance left over, it is to be treated as unabsorbed depreciation and it is taken to the next succeeding year. Where there is current depreciation for su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

News: RBI Reference Rate for US $

Forum: Duty Drawback & Input Credit - under GST

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

Forum: Input tax credit

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Manpower Service provider

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC



|| 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