VISTEON AUTOMOTIVE SYSTEMS INDIA PRIVATE LIMITED,CHENGALPUT vs. ACIT, CHENNAI

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ITA 1081/CHNY/2008Status: DisposedITAT Chennai12 July 2021AY 2003-045 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal permitted the assessee to withdraw the appeals as they had opted for the Vivad-se-Vishwas Scheme. The appeals were accordingly dismissed as withdrawn or infructuous.

What were the facts?

The assessee filed appeals against assessment orders related to AY 2003-04 and 2004-05. The appeals involved complex issues of book profit computation under Section 115JB and set-off of losses.

What were the issues?

The primary issue was the computation of book profit under Section 115JB and the correct set-off of losses. However, the appeals were withdrawn due to opting for the Vivad-se-Vishwas Scheme.

Which sections of the Income-tax Act were involved?

Section 115JB,Section 143(2),Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI DUVVURU R.L. REDDY & SHRI S. JAYARAMAN

Hearing: 06.07.2021

Heard together (2 matters)

ITA No.670/Chny/2011
ITA No.1081/Chny/2008

Read from the judgment's own cause title. This page is filed under one of them.

M/s.Hanon Automotive Systems v. The ACIT / DCIT, India Pvt. Ltd., Company Circle-III (4), (Formerly known as Visteon 121, M.G.Road, Automotive Systems India Pvt. Ltd.), Chennai-34. Keelakaranai Village, Malrosapuram Post, Maraimalai Nagar, Chengalpattu-603 204. [PAN: AAACM 6890 R] (अपीलाथ"/Appellant) (#$थ"/Respondent) अपीलाथ" की ओर से/ Appellant by : Mr.N.V.Balaji, Adv. #$थ" की ओर से /Respondent by : Mr.Suresh Periasamy, JCIT सुनवाई की तारीख/Date of Hearing : 06.07.2021 घोषणा की तारीख/Dt. of Pronouncement : 12.07.2021 आदेश / O R D E R PER BENCH:

The assessee filed these appeals against the order of the Commissioner of Income Tax, Chennai-I/the Commissioner of Income Tax (Appeals)-III, Chennai, in C.No.218(30)/CIT-I/263/2010-11 dated 08.02.2011 & in C.No.218(28)/CIT-I/263/2006-07 dated 20.03.2008, in & ITA Nos.2425 & 2426/Chny/2014 & :- 2 -: 1467/2013-14 dated 30.06.2014 for the AY 2003-04 and in ITA No.744/2006- 07/A-III dated 13.06.2007 for the AY 2004-05.

2.

Brief facts of the case are that the assessee filed its return of income for the assessment year 2003-04 on 28.11.2003 admitting NIL income. The return was processed under section 143(1) of the Income Tax Act, 1961 [“Act” in short] on 16.01.2004. The said return was selected for scrutiny and notice under section 143(2) of the Act dated 16.11.2004 was issued. After considering the submissions of the assessee, the assessment under section 143(3) of the Act was completed on 27.02.2006 by disallowing the bad debts of ₹.34,53,205/- and the result amount of ₹.34,71,73,739/- was allowed to be set off by carry forward of business loss, but without mentioning the profit arrived under section 115JB of the Act since there was no change in the profit.

2.1 Subsequently, vide order under section 263 of the Act dated 20.03.2008, the ld. CIT set aside the assessment order with a direction to compute the income under section 115JB of the Act as the AO has not computed the profit u/s. 115JB in the assessment order u/s. 143(3) of the Act. The AO, after examining the case with regard to CIT’s direction, completed the assessment under section 143(3) r.w.s. 263 of the Act on 26.11.2008, arriving the book profit under section 115JB at ₹.11,00,42,342/- after making addition of ₹.18,56,82,978/- towards the items specified in Clause (a) to (f) of explanation to section 115JB of the Act. & 2426/Chny/2014 & :- 3 -: 2.2 Aggrieved by the order under section 143(3) r.w.s. 263 of the Act dated 26.11.2008 of the Assessing Officer, the assessee preferred an appeal before the ld. CIT(A) with regard to the computation of book profit under section 115JB, levy of interest and credit for tax paid, etc.

2.3 Subsequently, again the ld. CIT vide his order under section 263 dated 08.02.2011 has set aside the assessment order passed under section 143(3) r.w.s. 263 dated 26.11.2008 for the purpose of allowing the correct set off of loss against the book profit computed under section 115JB. After examining the case, especially with regard to CIT-I’s direction given in his order dated 08.02.2011, the Assessing Officer completed the assessment under section 143(3) r.w.s. 263 on 30.12.2011, computing the book profit at ₹.16,48,26,055/- after making the addition of ₹.18,56,82,978/- towards items specified in Clause

(a) to (f) of explanation to section 115JB of the Act.

2.4. Aggrieved by the order under section 143(3) r.w.s. 263 of the Act dated 30.12.2011 of the Assessing Officer, the assessee filed the appeal before the ld. CIT(A). The ld. CIT(A) vide order dated 30.06.2014 passed the common appellate order against the appeals filed against the assessment order under section 143(3) r.w.s. 263 of the Act dated 26.11.2008 as well as reassessment

order 143(3) r.w.s. 263 of the Act dated 30.12.2011, against which, the assessee preferred further appeal before the Tribunal. Moreover, the assessee also filed appeals against the original revision order under section 263 of the & 2426/Chny/2014 & :- 4 -: Act dated 26.11.2008 and subsequent revision order under section 263 of the Act dated 08.02.2011. 3. The assessee also filed an appeal in ITA No.2039/Chny/2007 for the assessment year 2004-05 against the fringe benefit tax.

1.

3.1 When these appeals for the assessment years 2003-04 and 2004-05 were taken up for hearing, the learned Counsel for the Assessee has submitted that the Assessee has opted to avail the Vivad-se-Vishwas Scheme 2020 and Form No.3 was also issued. It was submitted that the assessee may be permitted to withdraw the appeals for both the assessment years.

3.2 On the other hand, the learned Departmental Representative has not raised any objection to the submissions of the learned Counsel.

4.

We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below. For both the assessment years 2003-04 and 2004-05, the Assessee has opted for the Vivad-se-Vishwas Scheme 2020 and the Designated Authority has issued Form No.3 for the settlement of pending tax dispute. Thus, the ld. counsel prayed that the assessee may be permitted to withdraw the appeals.

4.1 In view of the submissions of the Assessee, the appeals filed by the Assessee are permitted to be withdrawn. However, it is open to the Assessee to approach the Tribunal by filing an appropriate application in the event of any & 2426/Chny/2014 & :- 5 -: injustice caused to the Assessee in respect of the settlement of dispute relating to the Vivad-se-Vishwas Scheme 2020. 4.2 Since the appeals filed against the appellate order under section 143(3) r.w.s. 263 of the Act for the assessment year 2003-04 are dismissed as withdrawn, the appeals filed against revision orders in ITA No.670/Chny/2011, ITA No.1081/Chny/2008 are dismissed as infructuous.

5.

In the result, the appeals filed by the Assessee in & 2426/Chny/2014 and ITA No.2039/Chny/2007 are dismissed as withdrawn and ITA No.670/Chny/2011, are dismissed as infructuous.

Order pronounced on the 12th day of July, 2021, in Chennai. (एस. जयरामन) (धु+ु, आर.एल. रे-ी) (S. JAYARAMAN) (DUVVURU R.L. REDDY) लेखा सद" /ACCOUNTANT MEMBER "ाियक सद"/JUDICIAL MEMBER चे"ई/Chennai, िदनांक/Dated: 12th July, 2021. TLN

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