THE PRINCIPAL COMMISSIONER OF INCOME TAX-02 vs. M/S COMPETENT SOFTWARE PVT. LTD.

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ITA/561/2016HC DelhiDLHC01166584201627 September 2016Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MS. JUSTICE DEEPA SHARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises in the present appeals. The Tribunal (ITAT) had followed the decision of the High Court itself in CIT vs. TEI Technologies Pvt. Ltd., reported in 361 ITR 36. This precedent directly addressed the issue of unabsorbed depreciation in the context of Section 10B exemptions. Consequently, the High Court found no grounds to interfere with the ITAT's order based on the established legal position. The appeals were accordingly dismissed.

What were the facts?

The appeals were filed by the Principal Commissioner of Income Tax-02 (the Revenue) against the order of the Income Tax Appellate Tribunal (ITAT). The respondent is M/s. Competent Software Pvt. Ltd. (the Assessee). The assessment years are not explicitly stated. The appeals challenge the ITAT's decision regarding the claim of unabsorbed depreciation. The procedural history involves the Revenue filing these appeals before the High Court after an order from the ITAT.

What were the issues?

1. Whether unabsorbed depreciation under Section 32(2) of the Income Tax Act, 1961, could be claimed in respect of an ineligible unit, where the company was also entitled to exemption under Section 10B? (Question of law) Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue argued that unabsorbed depreciation cannot be claimed for an ineligible unit when the company is also eligible for exemption under Section 10B. The Revenue's argument is implicitly addressed by the court's decision.

Which sections of the Income-tax Act were involved?

Section 32(2),Section 10B

AI-generated summary — verify with the full judgment below

$~3 to 5 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 559/2016 + ITA 560/2016 + ITA 561/2016 THE PRINCIPAL COMMISSIONER OF INCOME TAX-02 ..... Appellant Through Mr. Dileep Shivpuri, Sr. Standing Counsel with Mr. Sanjay Kumar, Standing Counsel & Mr. Vikrant Maheshwari, Advocate.

versus

M/S. COMPETENT SOFTWARE PVT. LTD. ..... Respondent Through Mr. Kapil Goel & Mr. Mukul Gupta, Advocates

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MS. JUSTICE DEEPA SHARMA

O R D E R %

27.09.2016 The question of law urged in the present case is whether any unabsorbed depreciation under Section 32 (2) of the Income Tax Act, 1961 could be claimed in respect of an ineligible unit, where the company was also entitled to exemption under Section 10B. This court notices that the ITAT followed the decision of this court in CIT vs. TEI Technologies Pvt. Ltd. 361 ITR 36. Consequently, no question of law arises. The appeals are accordingly dismissed.

S. RAVINDRA BHAT, J

DEEPA SHARMA, J SEPTEMBER 27, 2016/sm

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