A.C.I.T., CIRCLE-4(1), KOLKATA, KOLKATA vs. M/S KAILASH SOAP PRIVATE LIMITED, KOLKATA

The only issue is to be decided as to whether the CIT(A) is justified in directing the AO to consider the claim of the assessee as denied by the CPC u/s 154 of the Income Tax Act, 1961

After hearing both the parties, we note that the assessee claimed unabsorbed depreciation for the year under consideration. The CPC denied the said benefit to the assessee challenging the same before CIT(A) wherein the CIT(A) directed the AO to pass a speaking order for due verification of the claim of the assessee. We find that the assessee claimed unabsorbed depreciation u/s 32(2) of the Income Tax Act, 1961 (Act) in its computation of income. But however the CPC denied the same. It was held while passing the rectification order u/s 154 of the Act that the claim of the assessee was not fully verified by the AO. Therefore we find no infirmity in the order M/s Kailash Soap (P)Ltd A.Y.2013-14 of CIT(A) for directing the AO to verify the same and pass order in accordance with law. Therefore ground no.1 raised by the revenue in this regard is dismissed.

In the result the appeal by the revenue is dismissed.