DEPUTY COMMISSIONER OF INCOME-TAX vs. BHIMA SAHAKARI SAKHAR KARKHANA LTD.,, PUNE

The Revenue in appeal has assailed the order of Commissioner of Income Tax (Appeals) by raising following grounds:

The brief facts of the case as emanating from records are: The assessee is a Co-operative Society registered under Maharashtra Co-operative Societies Act, 1960 and is engaged in manufacture and sale of sugar and its by products. The assessee filed its return of income for the impugned assessment year on 31.06.2006 declaring total income as „Nil‟ after setting off of Rs.3,32,51,892/- against the carried forward losses for earlier years. In scrutiny assessment proceedings, income of the assessee was assessed at Rs.7,76,48,790/- vide order dated 29.12.2008. The assessee carried the matter in appeal before the Commissioner of Income Tax (Appeal). Consequent to the order of the First Appellate Authority, income of the assessee was determined at Rs.4,16,96,310/-. Thereafter, assessee filed application u/s.154 of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) claiming carried forward losses of Rs.78,21,35,265/-. In proceedings u/s.154 of the Act, set off of carried forward loss was allowed. Subsequently, notice u/s.148 of the Act was issued to the assessee on 28.03.2013. In re- assessment proceedings, the Assessing Officer disallowed carry forward of unabsorbed depreciation loss of Rs.4,78,24,427/- for assessment year 1998-99 set off against profits of assessment year under appeal.

Aggrieved by the assessment order dated 12.07.2013 passed u/s. 143(3) r.w.s. 147 of the Act, the assessee filed appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax

Shri Pramod Shingte appearing on behalf of the assessee submitted that the issue raised in the present appeal by Revenue is squarely covered by the decision of Tribunal in assessee‟s own case in ITA No.1998/PN/2013 (supra.).

Shri Amol Kamat representing the Department vehemently defended the assessment order. However, the ld. DR fairly admitted that the issue raised in the present appeal is similar to the one adjudicated by Tribunal in assessee‟s own case for assessment year 2004-05.

Both sides heard. Orders of the Authorities below perused. The solitary issue raised by Revenue in appeal is against allowing unabsorbed depreciation loss for assessment year 1998-99 to be carried forward and set off against profits of the assessment year 2006-07. We find that the issue whether unabsorbed depreciation can be carried forward for a period of 8 years and can be allowed against income of the latter assessment years was decided by the Tribunal in assessee‟s own case for assessment year 2004-05. In the said case, unabsorbed depreciation loss for assessment year 1995-96 was carried forward by assessee and was set off against income for the assessment year 2004-05. The Assessing Officer/ Commissioner of Income Tax (Appeals) disallowed the claim of assessee. In second appeal before the Tribunal, assessee succeeded. The Co-ordinate Bench of the Tribunal

In the result, appeal of the Revenue is dismissed.