ITO 8(3)(3), MUMBAI vs. TEHCNO TARP & POLYMERS P.LTD, MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा लेखा सद�य लेखा लेखा सद�य सद�य राजे�� सद�य राजे�� राजे�� केकेकेके अनुसार राजे�� अनुसार अनुसार PER RAJENDRA, AM- अनुसार Challenging the order dated 18.4.2013 of CIT(A)-18, Mumbai the AO has filed the present appeal. 2.Assessee-company,a 100% export oriented unit is engaged in the business of manufacturing of tarpaulin products.It filed its return of income on 11.10.10 declaring total income at Rs.nil. The AO completed the assessment on 27.3.12 u/s.143(3) of the Act. During the assessment proceedings the AO found that the assessee had claimed deduction u/s.10B of the Act of Rs.1.30 crores from current business profits before setting off of the brought forward depreciation losses of earlier years.He was of the opinion that assessee should have adjusted brought forward unabsorbed depreciation of earlier years amounting to Rs.25.71.lacs from the current business profit,therefore, he held that the deduction will be allowable only after setting off of the unabsorbed depreciation pertaining to AY 2009-10. 3.Aggrieved by the order of the Assessing Officer, assessee preferred an appeal before First Appellate Authority (FAA).Before him, it was argued that the Tribunal vide its order dated 14.1.2013 had allowed the appeal filed by the assessee for AY 2009-10, wherein similar addition was made by the AO and was upheld by the FAA. After considering the assessment order and submission of the assessee the FAA referred to the cases of Black and Veatch Consulting(P)Ltd.(208taxmann144),Yokogava India Ltd.(21taxmann154)and TEI Technolo - gies (P.) Ltd.(25 taxmann.com 5).Relying upon the above mentioned cases and the decision of the Tribunal for AY 2009-10, he allowed the appeal of the assessee and directed the AO to allow deduction u/s. 10B before adjusting unabsorbed depreciation and carryforward losses. 4.Before us, the Departmental Representative (DR) stated that the matter could be decided on merits. The Authorized Representative (AR) supported the order of the FAA.

4890/M/13-Techno Tarp