DCIT, CIR-9(1), KOLKATA, KOLKATA vs. M/S DAMODAR VALLEY CORPORATION, KOLKATA

This appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals)-15, Kolkata dated 17.03.2016 and in the solitary ground raised therein, the Revenue has challenged the action of the ld. CIT(Appeals) in holding that the provisions of section 115JB are not applicable in the case of the assessee.

The assessee in the present case is a Corporation, which is mainly engaged in the business of manufacturing of Cold Rolled & High Tensile Steel. The return of income for the year under consideration was filed by it on 29.09.2010 declaring a loss of Rs.225.15 crores. In the assessment completed under section 143(3) vide an order dated 12.03.2013, the loss as declared by the assessee in the return of income as per the normal 2 Assessment Year: 2010-2011 provisions of the Act was accepted by the Assessing Officer. He, however, determined the deemed total income of the assessee at Rs.1,69,44,88,035/- under section 115JB of the Income Tax Act, 1961.

Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals), who held by relying on the decision of the Tribunal in assessee’s own case for A.Ys. 2008-09 and 2009-10 that the provisions of section 115JB were not applicable in the case of the assessee and accordingly directed the Assessing Officer not to assess the total income of the assessee by applying the said provision. Aggrieved by the order of the ld. CIT(Appeals), the Revenue has preferred this appeal before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. As agreed by the ld. representative of both the sides, the solitary issue involved in this appeal of the Revenue is squarely covered by the decision of the Coordinate Bench of this Tribunal rendered in assessee’s own case vide its common order dated 13.01.2016 passed in & 451/KOL/2013, wherein a similar issue was decided after discussing all the relevant aspects as well as case laws in details by the Tribunal before summarising its conclusion in paragraph no. 3.16 as under:- “The assessee is a statutory corporation not registered under the Companies Act, 1956 and hence the provisions of section 115JB of the Act are not applicable to the assessee corporation;

As the issue involved in the year under consideration as well as all the material facts relevant thereto are similar, we respectfully follow the order of the Coordinate Bench of this Tribunal for the said years and uphold the impugned order of the ld. CIT(Appeals) in directing the Assessing Officer not to assess the total income of the assessee by application of section 115JB of the Act.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 20th day of December, 2017.