DCIT, CC-XIX, KOLKATA, KOLKATA vs. M/S INTERNATIONAL CONVEYORS PVT. LTD., KOLKATA

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ITA 1366/KOL/2014Status: DisposedITAT Kolkata05 December 2016AY 2008-200918 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO was not justified in disallowing the deduction under Section 80-IA by adjusting unabsorbed depreciation. It confirmed the CIT(A)'s order that the assessee is entitled to claim deduction on current year's profit without such adjustments.

What were the facts?

The assessee, engaged in manufacturing, real estate, and wind power generation, had its premises searched. The Assessing Officer (AO) made additions under Section 14A read with Rule 8D and disallowed deduction under Section 80-IA, citing unabsorbed depreciation.

What were the issues?

Whether unabsorbed depreciation and business losses of an eligible unit should be set off against its profits for calculating deduction under Section 80-IA, especially when the assessee has the option to choose the initial assessment year.

Which sections of the Income-tax Act were involved?

Section 14A,Section 80-IA,Section 153A,Section 143(3),Section 43B

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “B”, BENCH KOLKATA

Before: DR. A.L.SAINI, AM & SHRI K. NARASIMHA CHARY, JM

Hearing: 17/11/2016Pronounced: 05/12/2016

per the assessment order for the A.Y.2008-09, however, as mentioned above, for the A.Y.2008-09, the CIT(A) has held that the AO was not justified in adjusting the notional depreciation and business loss from the eligible business of the earlier year for the purpose of computing deduction u/s.80-IA and that the assessee company is entitled to claim deduction u/s.80-IA on the current year’s profit without adjustment.

Therefore, considering the factual position, we are of the view that the AO

18 IT(SS)A No.90-93, 131 & M/s International Conveyors Pvt. Ltd. was not justified in adjusting the notional amount of unabsorbed depreciation of Rs.38,30,422/- from the current year’s profit of the eligible unit to deny the deduction u/s.80-IA of the Act. Therefore, we confirm the order passed by the ld. CIT(A) in respect of grounds No.2 & 3 raised by Rthe Revenue. Hence, the grounds No.2 & 3 raised by the revenue are dismissed. 6.4. In the result, appeals filed by the revenue in IT(SS)A No.131/Kol/2014 & along with IT(SS)A No.90/Kol/2014, IT(SS)A No.91/Kol/2014, IT(SS)A No.92/Kol/2014, IT(SS)A No.93/Kol/2014, are dismissed. Order pronounced in the open court on this 05/12/2016.

Sd/- Sd/- (NARASIMHA CHARY) (DR. A.L.SAINI) �या�यक सद�य / JUDICIAL MEMBER लेखा सद�य / ACCOUNTANT MEMBER कोलकाता /Kolkata; �दनांक Dated 05/12/2016 �काश �म�ा/Prakash Mishra,�न.स/ PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. आयकर आयु�त(अपील) / The CIT(A), Kolkata. 4. आयकर आयु�त / CIT �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, कोलकाता / DR, ITAT, Kolkata 5. 6. गाड� फाईल / Guard file. स�या�पत ��त //True Copy// आदेशानुसार/ BY ORDER,

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