JCIT(OSD), CIR011(1), KOLKATA vs. M/S. PHILIPS CARBON BLACK LTD. , KOLKATA

ITA 234/KOL/2023Status: DisposedITAT Kolkata28 August 2025AY 2014-15Bench: Shri Duvvuru RL Reddy (Vice President), Shri Rajesh Kumar (Accountant Member)6 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision regarding additional depreciation, stating that the issue is settled law allowing the claim in the subsequent year. For the transfer pricing adjustment, the Tribunal found the revenue's grounds to be academic and infructuous, as the assessee had no taxable income and claimed no deduction under Section 80-IA, making the adjustment have no tax consequence.

What were the facts?

The assessee claimed the balance 10% additional depreciation of Rs. 2.48 crores in AY 2014-15 for plant and machinery put to use for less than 180 days in the preceding financial year. The AO disallowed this, but the CIT(A) deleted the disallowance. Additionally, the revenue challenged the CIT(A)'s deletion of a transfer pricing adjustment of Rs. 1.93 crores related to the sale of power from the assessee's Captive Power Plant, where the assessee had incurred an overall business loss and claimed no deduction under Section 80-IA.

What were the issues?

1. Whether the balance 10% additional depreciation for assets put to use for less than 180 days in the previous year can be claimed in the subsequent assessment year. 2. Whether a transfer pricing adjustment is academic when the assessee has declared an overall business loss and claimed no deduction under Section 80-IA.

Which sections of the Income-tax Act were involved?

Section 250,Section 144C,Section 143(3),Section 32(1)(iia),Section 32(1),Section 80IA(8),Section 80-IA,Section 14A,Section 68,Section 115JB,Section 92CA

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Income Tax Appellate Tribunal, “C” BENCH KOLKATA

Before: Shri Duvvuru RL Reddy & Shri Rajesh Kumar

Per Rajesh Kumar, Accountant Member:

The present appeal is filed by the revenue for the assessment year 2014-15 against the order dated 30.09.2021 of the Commissioner of In- come Tax (Appeal)-22, Kolkata [hereinafter referred to as ‘CIT(A)’] u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’) which is in connection with the assessment order passed u/s 144C r.w.s 143(3) of the Income-tax Act, 1961 dated 18.12.2017 for Assessment Year 2014-

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