Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH, JM
आदेश / O R D E R PER AMARJIT SINGH, JM:
The assessee has filed the present appeal against the order dated 05.12.2013 passed by the Commissioner of Income Tax (Appeals) -9, Mumbai [hereinafter referred to as the “CIT(A)”] relevant to the A.Y.2010-11.
The assessee has raised the following grounds:-
ITA No.1492/M/2014 A.Y. 2010-11
“Being aggrieved by the Order passed under section 250 of the Income tax Act, 1961 ('Act') by the learned Commissioner of Income tax (Appeals)-9, Mumbai (hereinafter referred to as "the CIT(A)"), your appellant submits the following grounds of appeal for your sympathetic consideration: On the facts and in the circumstacnes of the case and in law:
1. The learned CIT(A) erred in confirming the AO's action of not recognizing the continuity of business activity of the appellant. He ought to have appreciated that during the concerned year, assessee company continued to be engaged in the activity of trading business as in the past.
2. The learned CIT(A) erred in confirming the AO's action of restricting the expenditure incurred for the purpose of business to the tune of Rs.1,53,735/- being 10% of the Trading Sales for the year and further erred in confirming disallowance of expenses of Rs. 43.74 lacs without appreciating that the said expenditure is incurred for the purpose of business carried on by the Appellant.
3. The learned CIT(A) further erred in restricting the other expenditure to Rs.1 ,24, 114/- being 2% of other income of Rs. 62,05,707/- following the earlier years, and also taxed the same under the Head 'Income from Other Sources' rather than 'Business Income' as returned by the Assessee Company. He ought to have appreciated that the Other Income aggregating to Rs. 62.06 lacs comprising of (a) interest on FD and Loans Rs. 58.14 lacs, (b) Interest on Income Tax Refund Rs.2.48 lacs and (c) Rental Income Rs. 1.43 lacs, was earned in the course of carrying on the business of the Company and as such could have been taxed only under the head 'Business Income'.
4. The learned CIT(A) also erred in confirming the denial of set off of brought forward Business Loss / Unabsorbed Depreciation of earlier years amounting to Rs.259.60 lakh in light of alleged discontinuity of business activity and resultant absence of Business Income.
5. The learned CIT(A) further erred in confirming denial of set off of brought forward unabsorbed depreciation of Rs.84.30 lakhs against the taxable income computed for the year and carry forward of business / unabsorbed depreciation of the same.”
3. The brief facts of the case are that the assessee filed its return of income on 20.09.2010 declaring total income at Nil for A.Y.2010-11.
ITA No.1492/M/2014 A.Y. 2010-11 The return of income was processed u/s.143(3) of the Income Tax Act, 1961 ( in short “the Act”) on 31.01.2013. Notice u/s. 143(2) dated 26.09.2011 was issued and served upon the assessee. Subsequently, notice u/s.142(1) dated 13.02.2012 was issued and served upon the assessee . Thereafter, the AO disallowed certain claim raised by the assessee and assessed the income of the assessee to the tune of Rs.1,81,04,960/- and taxed accordingly. Feeling aggrieved, the assessee filed an appeal before the CIT(A)-9, Mumbai who dismissed the appeal, therefore, the assessee has filed the appeal before us.
At the time of hearing the ld. Representative for the assessee has fairly conceded/submitted that all the issues in the appeal have been decided against the assessee by the co-ordinate bench of the Tribunal in assessee’s own case for the assessment year 2007-08 in dated 4.4.2012 . It has also been admitted that thereafter in connection with the relevant issues, the Tribunal in assessee’s own case has also dismissed the appeal of the assessee in assessment year 2009-10 and 2011-12 by virtue of the order dated 22.01.2016 and 27.07.2015 in ITA No.4342/M/2012 and ITA No.3448/Mum/2015 respectively (placed on record). Accordingly, we respectfully following the said order of the Tribunal as well as following the principle of consistency/ (natural justice) dismissed the appeal of the assessee .
ITA No.1492/M/2014 A.Y. 2010-11
In the result, appeal of the assessee has been ordered to be dismissed.
Order pronounced in the open court on 28th September,2016. आदेश क� घोषणा खुले �यायालय म� �दनांक 28 िसतंबर, 2016 को क� गई ।