M/S. DEENDAYAL PORT TRUST (ERSTWHILE KANDLA TRUST PORT),,GANDHIDHAM vs. THE ADDL. COMMISSIONER OF INCOME TAX (EXEMPTIONS), GANDHIDHAM RANGE,, GANDHIDHAM

PDF · subscribers
ITA 218/RJT/2018Status: DisposedITAT Rajkot26 July 2023AY 2006-07Bench: SHRI WASEEM AHMED (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)4 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal as withdrawn based on the assessee's submission and the respondent's lack of objection. A subsequent order confirmed the assessee's eligibility for exemption and set-off of brought forward losses.

What were the facts?

The assessee appealed against the CIT(A)'s order upholding the AO's rectification of the assessment order regarding the disallowance of brought forward losses. The assessee later submitted that the appeal was not pressed due to a subsequent appeal effect order confirming exemption and allowing set-off of losses.

What were the issues?

Whether the AO's rectification under Section 154 was valid for a debatable issue concerning set-off of brought forward losses for an income-exempt entity. Whether the CIT(A) erred in upholding the disallowance of brought forward losses.

Which sections of the Income-tax Act were involved?

Section 154,Section 11

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI WASEEM AHMED & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Manish Shah, A.R
For Respondent: Shri Shramdeep Sinha, CIT DR
Hearing: 19.07.2023Pronounced: 26.07.2023

O R D E R PER BENCH: This appeal has been filed by the assessee against the order passed by the Ld. CIT(Appeals)-3, Rajkot in Appeal No. CIT(A)-3/10591/16-17 vide order dated 23.03.2018 passed for Assessment Year 2006-07. 2. The assessee has taken the following grounds of appeals:-

1.

“1. The CIT(A) erred in law in upholding the action of assessing officer of rectifying the assessment order u/s 154 on issue of disallowance of entire brought forward loss of AY 2005-06 for which no notice was issued to assessee u/s 154 of the IT Act, 1961. Deendayal Port Trust vs. ADDL.CIT Asst.Year –2006-07 2. The CIT(A) erred in law in holding that assessee is not entitled to setting of brought forward losses of AY 2005-06 as income of assessee is exempt u/s 11 of the IT Act, 1961.

3. The CIT(A) erred in law in upholding the action of assessing officer of rectifying the assessment order u/s.154 on a debatable issue of entitlement of setting off the brought forward losses in case of entities whose income is exempt u/s 11 of the LT. Act. 1961.

4. The CIT(A) erred in law in upholding the action of assessing officer of disallowing the entire brought forward losses of AY 2005-06 while determining the income for AY 2006-07 without disturbing the assessed loss of AY 2005-06.

5.

In any case, the CIT(A) erred in upholding the order of the Assessing Officer under section 154 which not only attempts to rectify the debatable error but also tries to modify the assessment order on issues which were not part of section 154 notice.

The appellant reserves its right to add, amend, alter or modify any of the grounds stated hereinabove either before or at the time of hearing.”

3.

Before us, the counsel for the assessee submitted that he shall not be pressing for the instant appeal in view of the appeal effect order dated 07-05-2019 passed by the Deputy Commissioner of Income Tax (Exemptions), Circle-2, Ahmedabad, after which the entire income of the Deendayal Port Trust vs. ADDL.CIT Asst.Year –2006-07 assessee trust has been held as exempted after set off of brought forward losses for Assessment Year 2005-06. Accordingly, in the light of the aforesaid order, the counsel for the assessee has submitted that he shall not be pressing for the present appeal. The Ld. DR has also not objected to the request for withdrawal of the present appeal by the assessee.

4.

It would be useful to reproduce the relevant extracts of the Appeal Effect Order dated 07-05-2019, for reference:-

As per ROI of A.Y. 2006-07, the assessee has claimed set off b/f loss of Rs. 1,34,14,37,720/- pertaining to A.Y. 2005-06. Further, as per the appeal effect order dated 06-05-2019 w.r.t. ITAT’s order vide and 674/Rjt/2014 dtd. 08.06.2018, the total income of the assessee for A.. 2005-06, is determined of (-) Rs.106,98,19,340/- which is actually eligible to set off against the income of A.Y. 2006-07 instead of loss of Rs. 1,34,14,37,720/- as claimed in return of A.Y. 2006-07 by the assessee. Further, Ld. CIT(A)-II, Rajkot vide order No. CIT(A0-II / Rjt/0056/13-14 dated 12.09.2014 pertaining to A.Y. 2006-07, has held that assessee is eligible for exemption u/s 11 & 12 of the Act and this stand of Ld. CIT(A) is also confirmed by the Hon’ble ITAT’s order vide TIA No. 680/Rjt/2014 and 675/Rjt/2014 dtd. 08.06.2018. Hence, the entire income of the assessee trust has been held as exempted after set off b/f loss of A.Y. 2005-06 as discussed above.

Deendayal Port Trust vs. ADDL.CIT Asst.Year –2006-07 5. In view of the above, the appeal of the assessee is dismissed as withdrawn.

More judgments on Section 154

All 8,676 judgments and leading authorities on Section 154 →

Recent GST High Court judgments

Search GST case law →