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

DCIT, Central Circle-2 (3) , Ahmedabad Versus M/s Tearpanth Foods Ltd.

Claim of set off of brought forward unabsorbed depreciation pertaining to AY 1999-2000 against the income of AY 2008-09 - Held that:- Respectfully following the judgment of Hon. Jurisdictional High Court in the case of Gujarat Themis Biosyn Ltd. (2014 (5) TMI 194 - GUJARAT HIGH COURT) and in the case of General Motors India P. Ltd. (2012 (8) TMI 714 - GUJARAT HIGH COURT ) we are of the view that as per the provisions of sec.32(2) of the Act as amended by Finance Act, 2001, unabsorbed depreciatio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2008-09 is directed against the order of ld. CIT(A)-II, Rajkot, dated 26/03/2013 vide order No.CIT(A)-II/RJT/0077/10-11 arising out of order u/s 143(3) of the IT Act, 1961 (in short the Act) framed on 24/12/2010 by ACIT, Gandhidham Circle, Gandhidham (Kutch). 2. The only ground in this appeal raised by the Revenue is against the order of ld. CIT(A) allowing assessee s claim of set off of brought forward unabsorbed depreciation of ₹ 2,95,27,925/- pertaining to Asst. Year 1999-2000. 3. Brief .....

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 case was selected for scrutiny assessment and notice u/s 143(2) of the Act was issued on 25.08.2009, followed by notice u/s 142(1) of the Act. Against the income of ₹ 2,18,70,576/- the assessee claimed set off of unabsorbed depreciation of ₹ 2,95,27,925/- which was brought forward from A.Y. 1999-2000. Such set off of unabsorbed depreciation brought forward from Asstt. Year 1999-2000 was disallowed/denied to the appellant on the ground that as per Section 32(2) which was applicab .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng off of unabsorbed depreciation. 4. The assessee carried the matter in appeal before ld. CIT(A) and succeeded as the impugned disallowance was deleted. 5. Aggrieved, Revenue is now in appeal before the Tribunal.. 6. At the out set ld. Authorised Representative (AR) submitted that the issue in this appeal is squarely covered in favour of assessee by the judgment of Hon. Jurisdictional High Court in the case of CIT vs. Gujarat Themis Biosyn Ltd. vide Tax Appeal No.3 of 2014 wherein Hon. Court co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

grievance of the Revenue is against the order of ld. CIT(A) allowing the assessee s claim of setting off of brought forward unabsorbed depreciation of ₹ 2,95,27,925/- pertaining to Asst. Year 1999-2000 against the income of Asst. Year 2008-09. We observe that during the course of assessment proceedings ld. Assessing Officer raised question against the claim of setting off of unabsorbed depreciation of ₹ 294,27,925/- of brought forward from Asst. Year 1999-2000. In reply to show caus .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

such un-absorbed depreciation was first computed. In this regard we would like to submit that the law as existing on first day of the relevant Asstt Year in which such set off is claimed has to be seen and in that view of the matter Section 32(2) as substituted in the Asstt. Year under consideration would be applicable according to which the un-absorbcd depreciation of the earlier year will become part and parcel of the current year depreciation and the same is required to be allowed in the curr .....

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 decision of Hon. Supreme Court in the case of Karimtharuvi Tea Estate Ltd. Vs. State of Kara la 60 ITR 262 (SC) and Reliance jute & Industries Ltd. Vs CIT120 ITR 921 (SC), In view of the above said legal position we request your honour to kindly consider provision of Section 32(2) as applicable for the Asstt. Year under consideration i.e. Asstt. Year 2008-09 and accordingly allowed us such set off to which we are very much entitled and drop the proposal of disallowing such set off .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

forward unabsorbed depreciation of ₹ 2,94,27,925/- to the extent of balance income for the Asst. Year 2008-09 of ₹ 2,18,70,576/- and balance of ₹ 75,57,349/- claimed to be carried forward are irregular and needs to be disallowed. 10. We further observe that when the issue came up before ld. CIT(A) the same was decided in favour of assessee by relying on the judgment of Hon. Jurisdictional High Court in the case of General Motors India P. Ltd. vs. DCIT (supra) by observing as f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t to explain the same thereby breaching the principle of natural justice. 5.1 The A.O. has allowed the brought forward business loss of A.Y. 01-02 to the tune of ₹ 29,77,230/- instead of ₹ 30,82,831/-, This has been done by the A.O. by taking the details as per statement E of brought forward loss/ depreciation. 5.2 The appellant has contended that no opportunity was provided to him to explain such difference and clarify the issue to the Ld. A.O. The appellant has contended that it wa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

7,230/- allowed in the assessment order. This ground of appeal is' allowed. Ground No.2 : The Learned Assessing Officer has further erred in law as well as on facts in denying the set off of Brought forward unabsorbed depreciation of Asstt. Year J 999-2000 amounting to . ₹ 2,94,27,925/- against the income of current year and carry forward of balance amount for the next Asstt. Year. 6,0 The appellant had claimed the set off of brought forward unabsorbed depreciation for A.Y. 99-2000 of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

issions on this issue. However, in his last submission, the appellant submitted that this issue is squarely covered by the decision of the Hon'ble Gujarat High Court in SCA No.1773 of 2012 in the case of General Motors_India P. Ltd. Vs. DCIT .(2012) 210 Taxman 20. In the said decision, the Hon'ble Gujarat High Court has reversed the decision of Mumbai Special Bench of ITAT in the case of DCIT vs. Times Guarantee (supra). It is held by the Hon'gle Gujarat High Court that after the ame .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

enabling the industry to conserve sufficient funds to replace plant and machinery and accordingly the amendment dispenses with the restriction of 8 years for carry forward and set off of unabsorbed depreciation. The amendment is applicable from assessment year 2002-03 and subsequent years. This means that 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 Finance Act .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ve and harmonious interpretation has to be taken. While construing taxing statutes, rule of strict interpretation has to be applied, giving fair and reasonable construction to the language of the section without leaning to the side of assessee or the revenue. But if the legislature fails to express clearly and the assessee becomes entitled for a benefit within the ambit of the section by the clear words used in the section, the benefit accruing to the assessee cannot be denied. However, Circular .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e set off till the A.Y. 2 002-03 then it would be carried forward till the time it is set off against the profits and gains of subsequent years. 38. Therefore, it can be said that, current depreciation is deductible in the first place from the income of the business to which if relates. If such depreciation amount is larger than the amount of 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 t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-":- however, there is no current depreciation for such succeeding year, the unabsorbed .depreciation becomes the depreciation allowance for such succeeding year. We are of the considered opinion that 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 Finance Act, 2001. And once the Circular No. 14 of 2001 clarified that the restriction of 8 years for carry forward .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

this decision of the Hon'ble Gujarat High Court which is, being jurisdictional High Court binding in nature on the undersigned. The A.O. is directed to allow the carry forward and set off of unabsorbed depreciation of ₹ 2,94,27,925/- for A.Y. 99-2000 while computing the income for the year under consideration. This ground of appeal is allowed 11. We further observe that Hon. Jurisdictional High Court in the case of CIT vs. Gujarat Themis Biosyn Ltd. (supra) has also dealt a similar iss .....

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     ↓  

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.

Forum: Input tax credit

Forum: Cess paid instead of SGST

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

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

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.

Forum: GST rates on mobile recharge business

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

Forum: import purchase

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 $

Forum: 3B mistake

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.

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

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

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.



|| 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