BHARAT TECHNOLOGIES AUTO COMPONENTS LIMITED,CHENNAI vs. ITO, COMPANY WARD 1(1), CHENNAI

ITA 1842/CHNY/2024Status: DisposedITAT Chennai13 November 2024AY 2004-05Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)12 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee did not get a proper opportunity before the AO and that a High Court appeal with direct bearing on the assessment was pending. Therefore, the Tribunal set aside the impugned order and restored the assessment to the AO.

What were the facts?

The assessee company merged with another company and claimed carry forward of business losses and unabsorbed depreciation. The Assessing Officer (AO) initially accepted the claim but later re-opened the assessment, disallowing the carry forward of losses and making an addition under Section 41(1)(b). The Commissioner (Appeals) upheld the AO's order.

What were the issues?

Whether the carry forward of business losses and unabsorbed depreciation of a merged company is allowable, and whether a waiver of loan falls under Section 41(1)(b). Also, whether natural justice principles were violated during the assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 72A,Section 41(1)(b)

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Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

  • Tin Box Company v. CIT
    249 ITR 216 · 2001 · SC
    624 citing
  • 121 Taxmann.com 284
    121 Taxmann.com 284 · 2020 · HC
    3 citing

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI MANOJ KUMAR AGGARWAL

Hearing: 26.09.2024Pronounced: 13.11.2024

PER ABY T. VARKEY, JM: These are appeals preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short ‘the Ld.CIT(A)’), Delhi, dated 30.03.2024 for the Assessment Years

(hereinafter in short ‘AY’) 2003-04, 2004-05 & 2006-07 respectively.

ITA Nos.1841, 1842 & 1843/Chny/2024 (AYs 2003-04, 2004-05 & 2006-07

The order continues below.

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