DEPUTY COMMISSIONER OF INCOME-TAX vs. KIRLOSKAR FERROUS INDUSTRIES LTD., PUNE

आदेश / ORDER

PER SUSHMA CHOWLA, JM

The appeal filed by the Revenue is against the order of the Commissioner of Income Tax (Appeals)-7, Pune dated 02.05.2016 relating to assessment year 2007-08 against order passed under section 154 of the Income Tax Act, 1961 ( in short ‘the Act’).

2 ITA No.1644/PUN/2016 A.Y.2007-08

“1.Whether in the facts and circumstances of the case and in law, the Ld.CIT(A) was justified in directing the A.O. to allow set off of unabsorbed depreciation relating to A.Y. 1998-99 to 2001-2002 against the income of A.Y. 2007-08 when as per the provisions of sec.32(2) of the I.T.Act, as applicable for the A.Y.1999-2000 unabsorbed depreciation cannot be set off for a period of more than eight assessment years succeeding the assessment year in which the allowance was first computed? 2. "Whether in the facts and circumstances of the case and in the law, the Ld.CIT(A) was justified in not applying the ratio laid down in the decision of the Ld. ITAT, Special Bench 'E' Mumbai in the case of M/s. Times Guarantee Limited in ITA Nos.4917 & 4918/Mum/2008, the present assessee's case. 3. For the facts and such other reasons as may be urged at the time of hearing, the order of the Ld. Commissioner of (Appeals), Pune may be vacated and that of the Assessing Officer be restored. 4. The appellant craves leave to add, amend or alter any of the above grounds of appeal.

present appeal is squarely covered by the order of Tribunal in assessee’s own

case relating to assessment year 2008-09. He also pointed out that similar

grounds of appeal as in the present appeal were raised by Revenue in

assessment year 2008-09.

Assessing Officer.

raised in the present appeal filed by the Revenue is against the order of CIT(A)

in directing the Assessing Officer to allow set off of unabsorbed depreciation

relating to assessment years 1998-99 to 2001-02, especially in view of the

provision of section 32(2) of the Act.

3 ITA No.1644/PUN/2016 A.Y.2007-08

30.10.2007 declaring total income of Nil as per the regular provisions and

Rs.33,47,76,972/- as per the provisions of MAT. The income of the assessee

company was assessed under section 143(3) on 23.12.2009 at

Rs.66,39,73,544/-. The Assessing Officer issued notice under section 154 of the

Act for rectifying the allowance of Rs.73,51,42,455/- claimed as unabsorbed

depreciation carried forward by the assessee of which Rs.13,92,90,774/- carried

forward as unabsorbed depreciation was from assessment year 1999-2000.

The assessee filed explanation which was rejected by the Assessing Officer and

sum of Rs.13,92,90,774/- was added to the total income of the assessee.

assessment year 2008-09 allowed the set off of unabsorbed depreciation

pertaining to assessment year 1999-2000 which was disallowed by the

Assessing Officer to be carried forward on the ground that unabsorbed

depreciation pertaining to assessment years 1998-99 to 2001-02 could be

carried forward for eight assessment years only. The Tribunal in ITA

No.911/PN/2013 vide order dated 27.11.2014 had allowed the claim of the

assessee.

the order of Tribunal in assessee’s own case relating to assessment year 2008-

09 (supra.) wherein the Tribunal had relied on the ratio laid down by the Hon'ble

Gujarat High Court in the case of General Motors India Pvt. Ltd. Vs. DCIT vide

special Civil Application No. 1773/2012 order dated 27.08.2012. The Tribunal

vide para 17 at page 14 to 17 of the order had allowed the claim of the assessee by holding that the issue stands covered in favour of the assessee by the

decision of Hon'ble Gujarat High Court and the decision of Special Bench of the

4 ITA No.1644/PUN/2016 A.Y.2007-08

Tribunal in the case of M/s.Times Guarantee Limited Vs. DCIT reported in 131 TTJ 257 ( MUM-SB) has been overruled. The relevant findings of the order of Tribunal are reproduced by the CIT(A) at page 5 to 8 of the appellate order, which are being referred to, but not being reproduced for the sake of brevity. The issue raised in the present appeal stands squarely covered in favour of assessee by the order of Tribunal in assessee’s own case for assessment year 2008-09 and following the same parity of the reasoning , we uphold the order of CIT(A) and dismiss the grounds of appeal raised by the Revenue.

Order pronounced on this 28th day of August, 2018.

Sd/- Sd/- ( D. KARUNAKARA RAO) (SUSHMA CHOWLA) लेखा सद�य/ACCOUNTANT MEMBER �या�यक सद�य/JUDICIAL MEMBER

पुणे / Pune; �दनांक / Dated : 28th August, 2018 SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to :

अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(Appeals)-7, Pune. 4. The CIT-6, Pune. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “बी” ब�च, 5. पुणे / DR, ITAT, “B” Bench, Pune. गाड� फ़ाइल / Guard File. 6.

// True Copy // आदेशानुसार / BY ORDER,

�नजी स�चव /Private Secretary आयकर अपील�य अ�धकरण, पुणे / ITAT, Pune.