CIT v. HCL Comnet Systems & Services Ltd.

Haldia Petrochemicals Limited, Kolkata vs. DCIT, Circle-11(1), Kolkata

In the result, the appeal of the Assessee is treated as partly allowed while the appeal of the Revenue is dismissed

Bench: Shri P.M. Jagtap & Shri S.S. Godara, Jm] I.T.A. No. 622/Kol/2017 Assessment Year 2008-09 Haldia Petrochemicals Ltd...............................……………………………….........................Appellant Bengal Eco Entelligent Park (Techna), Tower – 1, Block – Em, Plot No. – 3, Sector – V, Salt Lake City, 3Rd Floor, Kolkata – 700 091 [Pan: Aaach 7360 R] D.C.I.T. Cir 11(1)...................…………………………………………......................................Respondent P-7, Chowringhee Square, Kolkata – 700 069 I.T.A. No. 609/Kol/2017 Assessment Year 2008-09 D.C.I.T. Cir 11(1)...................………………………………………….........................................Appellant P-7, Chowringhee Square, Kolkata – 700 069 Haldia Petrochemicals Ltd...............................………………………………...................Respondent Bengal Eco Entelligent Park (Techna), Tower – 1, Block – Em, Plot No. – 3, Sector – V, Salt Lake City, 3Rd Floor, Kolkata – 700 091 [Pan: Aaach 7360 R] Appearances By: Shri H Chakraborty, Ar Appearing On Behalf Of The Assessee. Shri P.K. Srihari, Cit, Dr Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : November 01, 2018 Date Of Pronouncing The Order : November 22, 2018 Order Shri P.M. Jagtapthese Two Appeals, One Filed By The Assessee Being Ita No. 622/K/2017 & The Other Filed By The Revenue Being Ita No. 609/K/2017, Are Cross Appeals Which Are Directed Against The Order Of Ld. Cit (A) – 10, Kolkata Dated 30.01.2017. 2. The Issue Involved In Ground No. 1 Of The Assessee’S Appeal Relates To The Disallowance Of Rs. 57,53,60,000/- Made By The A.O. & 2 I.T.A. Nos. 622 & 609/Kol/2017 Haldia Petrochemicals Ltd. Confirmed By The Ld. Cit(A) On Account Of Unexplained Excess Consumption Of Raw Material (Nahptha).

…out and accepted under section 143(1) as per the law prevalent at the relevant time as settled by the decision of the Hon'ble Calcutta High Court in the case of Balrampur Chini Mills [214 CTR 684(Cal.) and the Hon'ble Supreme Court in the case of HCL Conmet [305 ITR 409 (SC)]. He submitted that when the 14 I.T.A. Nos. 622 & 609/Kol/2017 Haldia Petrochemicals Ltd. refund was granted to the assessee vide intimation issued under section 143(1) on 31.01.2008, retrospective amendments made by the Finance Act, 2008 & 2009 were not in the Statute and the said refund thus was granted in accordance with law as prevalen…

DCIT, Cir-11(1), Kolkata vs. M/S. Haldia Petrochemicals Ltd., Kolkata

In the result, the appeal of the Assessee is treated as partly allowed while the appeal of the Revenue is dismissed

Bench: Shri P.M. Jagtap & Shri S.S. Godara, Jm] I.T.A. No. 622/Kol/2017 Assessment Year 2008-09 Haldia Petrochemicals Ltd...............................……………………………….........................Appellant Bengal Eco Entelligent Park (Techna), Tower – 1, Block – Em, Plot No. – 3, Sector – V, Salt Lake City, 3Rd Floor, Kolkata – 700 091 [Pan: Aaach 7360 R] D.C.I.T. Cir 11(1)...................…………………………………………......................................Respondent P-7, Chowringhee Square, Kolkata – 700 069 I.T.A. No. 609/Kol/2017 Assessment Year 2008-09 D.C.I.T. Cir 11(1)...................………………………………………….........................................Appellant P-7, Chowringhee Square, Kolkata – 700 069 Haldia Petrochemicals Ltd...............................………………………………...................Respondent Bengal Eco Entelligent Park (Techna), Tower – 1, Block – Em, Plot No. – 3, Sector – V, Salt Lake City, 3Rd Floor, Kolkata – 700 091 [Pan: Aaach 7360 R] Appearances By: Shri H Chakraborty, Ar Appearing On Behalf Of The Assessee. Shri P.K. Srihari, Cit, Dr Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : November 01, 2018 Date Of Pronouncing The Order : November 22, 2018 Order Shri P.M. Jagtapthese Two Appeals, One Filed By The Assessee Being Ita No. 622/K/2017 & The Other Filed By The Revenue Being Ita No. 609/K/2017, Are Cross Appeals Which Are Directed Against The Order Of Ld. Cit (A) – 10, Kolkata Dated 30.01.2017. 2. The Issue Involved In Ground No. 1 Of The Assessee’S Appeal Relates To The Disallowance Of Rs. 57,53,60,000/- Made By The A.O. & 2 I.T.A. Nos. 622 & 609/Kol/2017 Haldia Petrochemicals Ltd. Confirmed By The Ld. Cit(A) On Account Of Unexplained Excess Consumption Of Raw Material (Nahptha).

…out and accepted under section 143(1) as per the law prevalent at the relevant time as settled by the decision of the Hon'ble Calcutta High Court in the case of Balrampur Chini Mills [214 CTR 684(Cal.) and the Hon'ble Supreme Court in the case of HCL Conmet [305 ITR 409 (SC)]. He submitted that when the 14 I.T.A. Nos. 622 & 609/Kol/2017 Haldia Petrochemicals Ltd. refund was granted to the assessee vide intimation issued under section 143(1) on 31.01.2008, retrospective amendments made by the Finance Act, 2008 & 2009 were not in the Statute and the said refund thus was granted in accordance with law as prevalen…

DCIT, Circle-4(2), Kolkata vs. M/S Mercury Car Rentals Limited, Kolkata

In the result, appeal of the revenue is partly allowed

Bench: "ी ऐ. ट". वक", "यायीक सद"य एवं/And "ी एम .बालागणेश, लेखा सद"य) [Before Shri A. T. Varkey, Jm & Shri M. Balaganesh, Am]

…ntained in section 115JA(2). By virtue of the said amendment, the amount or amounts set aside as provision for diminution in the value of any asset, is specifically mentioned. The Supreme Court in the case of CIT v. HCL Comnet Systems and Services Ltd. [2008] 305 ITR 409 (SC) held that provision for doubtful debts and doubtful advances did not fall within clause (c) of the said Explanation inasmuch as they amounted to provision in respect of diminution in the value of asset. 5. Now, with the introduction of the said amendment with retrospective effect from April 1, 1998, the provision for doubtful debts and the p…

DCIT, Circle - 3(1), Kolkata vs. M/S. Tata Metaliks Limited, Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…22 Taxman 562. But the fact remains that the propositions laid down by the hon'ble Supreme Court in the case of Apollo Tyres Ltd. (supra) have been reiterated and relied upon by the Supreme Court in the case of CIT v. HCL Comnet Systems & Services Ltd. [2008] 305 ITR 409/174 Taxman 118 which has been rendered in the context of section 115JA of the Act. As per sub-section (5) of section 115JB of the Act, which reads as "save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section". Having regard to expression "save as otherwi…

M/S Tata Metaliks Ltd., Kolkata vs. DCIT, Cir-3(1), Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…22 Taxman 562. But the fact remains that the propositions laid down by the hon'ble Supreme Court in the case of Apollo Tyres Ltd. (supra) have been reiterated and relied upon by the Supreme Court in the case of CIT v. HCL Comnet Systems & Services Ltd. [2008] 305 ITR 409/174 Taxman 118 which has been rendered in the context of section 115JA of the Act. As per sub-section (5) of section 115JB of the Act, which reads as "save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section". Having regard to expression "save as otherwi…

DCIT, Cir-3(1), Kolkata vs. M/S Tata Metaliks Ltd., Kolkata

In the result, Revenue’s appeal is dismissed

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

…22 Taxman 562. But the fact remains that the propositions laid down by the hon'ble Supreme Court in the case of Apollo Tyres Ltd. (supra) have been reiterated and relied upon by the Supreme Court in the case of CIT v. HCL Comnet Systems & Services Ltd. [2008] 305 ITR 409/174 Taxman 118 which has been rendered in the context of section 115JA of the Act. As per sub-section (5) of section 115JB of the Act, which reads as "save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section". Having regard to expression "save as otherwi…

Tata Metaliks Ltd., Kolkata vs. ITO, WD-3(2), Kolkata

In the result, Revenue’s appeal is dismissed

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

…22 Taxman 562. But the fact remains that the propositions laid down by the hon'ble Supreme Court in the case of Apollo Tyres Ltd. (supra) have been reiterated and relied upon by the Supreme Court in the case of CIT v. HCL Comnet Systems & Services Ltd. [2008] 305 ITR 409/174 Taxman 118 which has been rendered in the context of section 115JA of the Act. As per sub-section (5) of section 115JB of the Act, which reads as "save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section". Having regard to expression "save as otherwi…

D.C.I.T., Circle-4, Kolkata vs. M/S Hindustan Heavy Chemicals Ltd., Kolkata

In the result, the appeal of revenue is dismissed and that of the assessee is allowed

Bench: Shri M. Balaganesh, Am & Shri Partha Sarathi Chaudhury, Jm]

…that the issue is decided in favour of the assessee company by the jurisdictional High Court of Kolkata in the case of ICI (India) Ltd. Vs. CIT 347 ITR 442 (Cal) in which the decision of Hon’ble Apex Court in the case of CIT Vs. Comnet Systems & Services Ltd. 305 ITR 409 (SC) was followed by the Hon’ble Calcutta High Court. The Ld. CIT(A) held on the basis of the judicial principles and decisions that the AO is directed to delete the addition of Rs.8,70,932/- from the computation u/s. 115J of the Act on account of provision for doubtful debts. 14. We have perused the case records and heard the rival contentions…

Kesoram Industries Limited (Sucessor of Hindusthan Heavy Chemicals Ltd.), Kolkata vs. A.C.I.T., CC-X, Kolkata

In the result, the appeal of revenue is dismissed and that of the assessee is allowed

Bench: Shri M. Balaganesh, Am & Shri Partha Sarathi Chaudhury, Jm]

…that the issue is decided in favour of the assessee company by the jurisdictional High Court of Kolkata in the case of ICI (India) Ltd. Vs. CIT 347 ITR 442 (Cal) in which the decision of Hon’ble Apex Court in the case of CIT Vs. Comnet Systems & Services Ltd. 305 ITR 409 (SC) was followed by the Hon’ble Calcutta High Court. The Ld. CIT(A) held on the basis of the judicial principles and decisions that the AO is directed to delete the addition of Rs.8,70,932/- from the computation u/s. 115J of the Act on account of provision for doubtful debts. 14. We have perused the case records and heard the rival contentions…