TMI Blog2021 (7) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, the same was not to be allowed to be carried forward such unabsorbed depreciation and brought forward losses under normal as well as under the provisions of MAT under section 115 JB - HELD THAT:- The impugned losses in the year under consideration represents the brought forward amounts from the earlier years. This fact can be verified from the submission of the assessee before the ld. CIT-A in the proceedings of the assessment framed under section 143(3) r.w.s. 263 of the Act. This fact also remained undisputed by the Ld. DR appearing on behalf of the Revenue. Answer to question whether the brought forward amount can be enquired in the year under consideration without disturbing the 1st year (the year of origin ) in which suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1, Ahmedabad, arising in the matter of assessment order passed under s. 143(3) r.w.s 263 of the Income Tax Act, 1961 (here-in-after referred to as the Act ) relevant to the Assessment Year 2011-2012. First we take up ITA No.707/AHD/2016 for A.Y. 2011-12. 2. The only issue raised by the assessee is that the learned PCIT under section 263 of the Act has held that the assessment framed under section 143(3) of the Act is erroneous insofar prejudicial to the interest of Revenue. 3. The facts in brief are that the assessee in the present case is a limited company and engaged in the business of manufacturing of very fine produce (denier) in POY, FDY, DTY and Texturised Yarn. The assessee filed the return of income for the year under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such show cause notice, the assessee submitted that it has been allowed to carry forward the impugned amount of brought forward losses pertaining to the assessment year 2007-08 to the subsequent years by virtue of the order of Hon ble Gujarat High Court in the scheme of demerger vide order dated 27-08-2009 with effect from 1 April 2007. 3.4 However, the learned PCIT being dissatisfied with the contention of the assessee held that the assessment framed under section 143(3) of the Act vide order dated 8-2-2016 is erroneous insofar prejudicial to the interest of revenue by observing as under: I have considered the facts of the case and the submission made by the AR of the assessee. From the above discussion, it is evident that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are placed on record. These orders are six in numbers. 6. On the contrary, the learned DR vehemently supported the order of the learned PCIT passed under section 263 of the Act. 7. We have heard the rival contentions of both the parties and perused the materials available on record. The assessee company came into existence as a result of demerger of the company namely Nova Petrochemicals Ltd by virtue of the order of Hon ble Gujarat High Court dated 27-08-2009 w.e.f. 1-4-2007. In consequence to the demerger, the assessee carried forward the unabsorbed depreciation and the business loss pertaining to the financial year 2005-06 corresponding to assessment year 2006-07 amounting to ₹ 1,72,40,959.00 and Rs. Nil to the previous y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich such amounts were incorporated in the books of accounts of the assessee. Certainly, the answer stands in negative. 7.5 At the time of hearing, a question was also raised to the learned DR about the fact whether the Revenue can disturb the impugned amount brought forward from the earlier years, but the learned DR cannot make any satisfactory reply. Thus in the absence of any provisions under the law for disturbing the brought forward balances in the year under consideration in the given facts and circumstances, we hold that the learned PCIT has held the assessment order under consideration as erroneous insofar prejudicial to the interest of revenue under the provisions of section 263 of the Act without having any valid jurisdiction. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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