M/s. Coast Liners Pvt. Ltd., , Kolkata v. DCIT, Circle - 1(2), Kolkata , Kolkata

ITA 1052/KOL/2018 | 2013-2014
Pronouncement Date: 22-11-2019 | Result: Dismissed

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Appeal Details

RSA Number 105223514 RSA 2018
Assessee PAN AABCC5898E
Bench Kolkata
Appeal Number ITA 1052/KOL/2018
Duration Of Justice 1 year(s) 6 month(s) 4 day(s)
Appellant M/s. Coast Liners Pvt. Ltd., , Kolkata
Respondent DCIT, Circle - 1(2), Kolkata , Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 22-11-2019
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 22-11-2019
Last Hearing Date 17-10-2019
First Hearing Date 17-10-2019
Assessment Year 2013-2014
Appeal Filed On 18-05-2018
Judgment Text
ITA NO. 1052/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S.COAST LINERS PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA C BENCH KOLKATA BEFORE SHRI P.M. JAGTAP VICE-PRESIDENT AND SHRI SATBEER SINGH GODARA JUDICIAL MEMBER I.T.A. NO. 1052/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S. COAST LINERS PVT. LIMITED .................... ............................APPELLANT 29D SEVEN TANKS LANE DUM DUM JUNCTION KOLKATA-700030 [PAN: AABCC5898E] -VS.- DEPUTY COMMISSIONER OF INCOME TAX ................. ...................RESPONDENT CIRCLE-1(2) AAYAKAR BHAWAN P-7 CHOWRINGHEE SQUARE KOLKATA-700069 APPEARANCES BY: SHRI HARSHVARDHAN BHARADWAJ FCA FOR THE APPELLANT SHRI SUPRIYO PAL JCIT SR. D.R. FOR THE RESPONDEN T DATE OF CONCLUDING THE HEARING : OCTOBER 17 2019 DATE OF PRONOUNCING THE ORDER : NOVEMBER 22 2019 O R D E R PER SHRI P.M. JAGTAP VICE-PRESIDENT :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-1 KOLKATA DAT ED 28.03.2018 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DISALLOWANCE OF ASSESSEES CLAIM FOR SET OFF OF BROUGHT FORWARD LOS S OF THE EARLIER YEARS AGAINST THE INCOME OF THE ASSESSEE FOR THE YEAR UND ER CONSIDERATION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY W HICH IS ENGAGED IN THE BUSINESS OF TRANSPORTATION. IN THE RETURN OF IN COME FILED FOR THE YEAR UNDER CONSIDERATION SET OFF OF BROUGHT FORWARD LOS S FOR ASSESSMENT YEARS 2010-11 AND 2011-12 AMOUNTING TO RS.1 16 45 850/- A ND RS.59 96 905/- RESPECTIVELY WAS CLAIMED BY THE ASSESSEE AGAINST TH E INCOME FOR THE YEAR ITA NO. 1052/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S.COAST LINERS PVT. LIMITED 2 UNDER CONSIDERATION AND AFTER CLAIMING THE SAID SET OFF NIL INCOME WAS DECLARED BY THE ASSESSEE. DURING THE COURSE OF ASSE SSMENT PROCEEDINGS THE ASSESSING OFFICER FOUND THAT THE ASSESSEE-COMPA NY ITSELF HAD FILED ITS RETURN OF INCOME FOR A.Y. 2012-13 AT A POSITIVE FIG URE WITHOUT CLAIMING ANY SET OFF OF THE LOSS FOR A.Y. 2010-11 AND 2011-1 2. HE ALSO NOTED THAT NO EVIDENCE WAS BROUGHT ON RECORD BY THE ASSESSEE TO S HOW THAT THE LOSS FOR A.Y. 2010-11 AND 2011-12 AS CLAIMED BY THE ASSESSEE WAS ACTUALLY DETERMINED IN THE ASSESSMENT AND THE SAME WAS ALLOW ED TO BE CARRIED FORWARD. HE THEREFORE DISALLOWED THE CLAIM OF THE ASSESSEE FOR SET OFF OF BROUGHT FORWARD LOSS OF ASSESSMENT YEARS 2010-11 AN D 2011-12. 3. THE DISALLOWANCE MADE BY THE ASSESSING OFFICER O N ACCOUNT OF ITS CLAIM FOR SET OFF OF BROUGHT FORWARD LOSS OF A.YS. 2010-11 AND 2011-12 WAS CHALLENGED BY THE ASSESSEE IN THE APPEAL FILED BEFORE THE LD. CIT(APPEALS) AND SINCE HE DID NOT FIND MERIT IN THE WRITTEN SUBMISSION FILED BY THE ASSESSEE IN SUPPORT OF ITS CASE THE L D. CIT(APPEALS) CONFIRMED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER ON A CCOUNT OF ASSESSEES CLAIM OF SET OFF OF LOSS OF A.YS. 2010-11 AND 2011- 12 FOR THE FOLLOWING REASONS GIVEN IN HIS IMPUGNED ORDER:- ON CAREFUL CONSIDERATION OF THE WRITTEN SUBMISSION S AND MATERIAL ON RECORD THE ISSUE IN DISPUTE RELATES TO THE APPELLANTS CLAIM FOR SET OFF OF LOSSES FOR A.Y. 20 10-11 AND 2011-12 UNDER THE PROVISIONS OF SECTION 72 OF THE I .T. ACT 1961. HOWEVER ADMITTEDLY THE APPELLANT HAS NOT BRO UGHT ON RECORD ANY DOCUMENTARY EVIDENCE IN SUPPORT OF IT S CLAIM THAT THE LOSSES CLAIMED WERE DETERMINED IN TH E ASSESSMENT ORDER U/S 143(3) FOR THE SAID ASSESSMENT YEARS. MOREOVER AS PER PROVISIONS OF SECTION 80 OF THE I.T. ACT THE DETERMINATION OF LOSS IN PURSUANCE OF RETUR N FILED U/S. 139(1) WITHIN THE PRESCRIBED PERIOD IS A PRECO NDITION FOR CARRY FORWARD LOSSES. THE AO HAS RELIED UPON TH E DECISION BY THE ITAT MUMBAI IN THE CASE OF VIPUL P . DALAL (SUPRA) HOWEVER THE FACTS AND CIRCUMSTANCES OF TH E APPELLANTS CASE RELATING TO SET OFF OF LOSS DETERM INED FOR THE SAME ASSESSMENT YEAR WAS FOUND TO BE RECTIFIED WHEREAS THE ISSUE IN THE APPELLANTS CASE PERTAINS TO CLAIM FOR SET OFF OF BROUGHT FORWARD LOSSES NOT DISCLOSED/DETERMINED IN THE PRECEDING ASSESSMENT YE ARS. ITA NO. 1052/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S.COAST LINERS PVT. LIMITED 3 SINCE THE FACTS OF THE CITED CASE LAW IS FOUND TO B E DISTINGUISHABLE THE RATIO THEREOF IS NOT APPLICABL E TO THE APPELLANTS CASE. IN VIEW OF THE ABOVE DISCUSSION SINCE THE APPELLANTS CLAIM FOR A.Y. 2010-11 AND 2011-12 FOR RS.1 16 45 850/- AND RS.59 96 905/- RESPECTIVELY FO R CARRY FORWARD LOSS WERE NOT DETERMINED IN THE ASSESSMENT ORDER. THEREFORE I AM OF THE VIEW THAT THERE IS NO INFIRMITY IN THE FINDING OF A.O. WHICH IS CONFIRME D. THIS GROUND IS NOT ALLOWED. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS) THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEE HAS SUBMITTED THAT THE FACTUM AND QUANTUM OF LOSS FOR A .YS. 2010-11 AND 2011-12 AS CLAIMED BY THE ASSESSEE CAN BE VERIFIED BY THE ASSESSING OFFICER FROM THE RELEVANT ASSESSMENT RECORD AND ON SUCH VERIFICATION HE CAN ALLOW THE CLAIM OF THE ASSESSEE FOR THE SET OFF OF THE SAID LOSS AGAINST THE INCOME FOR THE YEAR UNDER CONSIDERATION I.E. A .Y. 2013-13 OR ATLEAST AGAINST THE INCOME OF THE ASSESSEE FOR A.Y. 2012-13 . HE HAS SUBMITTED THAT THE ASSESSING OFFICER HAS NOT GIVEN EFFECT TO THE ORDER OF THE TRIBUNAL FOR A.Y. 2012-13 AND WHILE GIVING SUCH EFFECT THE ASSESSING OFFICER MAY BE DIRECTED TO CONSIDER AND ALLOW THE CLAIM OF THE ASSESSEE FOR SET OFF OF BROUGHT FORWARD LOSS FOR A.YS. 2010-11 AND 2011-12. WE ARE UNABLE TO ACCEPT THIS CONTENTION OF THE LD. COUNSEL FOR THE A SSESSEE. FIRST OF ALL THE YEAR UNDER APPEAL IS 2013-14 AND SINCE THERE IS NO APPEAL BEFORE US FOR A.Y. 2012-13 WE CANNOT GIVE ANY DIRECTION FOR SET OFF OF LOSS FOR A.YS. 2010-11 AND 2011-12 AGAINST THE INCOME FOR A.Y. 201 2-13 AS SOUGHT BY THE LD. COUNSEL FOR THE ASSESSEE. MOREOVER AS RIGH TLY NOTED BY THE AUTHORITIES BELOW IN THEIR RESPECTIVE ORDERS AND FU RTHER CONTENDED BY THE LD. D.R. AT THE TIME OF HEARING BEFORE THE TRIBUNAL THE SET OFF OF BROUGHT FORWARD LOSS FOR A.YS. 2010-11 AND 2011-12 WAS NEVE R CLAIMED BY THE ASSESSEE AGAINST THE INCOME FOR A.Y. 2012-13 EITHER IN THE RETURN OF ITA NO. 1052/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S.COAST LINERS PVT. LIMITED 4 INCOME OR IN THE ASSESSMENT PROCEEDINGS OR EVEN DUR ING THE COURSE OF APPELLATE PROCEEDINGS. THE SAID CLAIM THEREFORE C ANNOT BE ENTERTAINED AT THIS STAGE. IT IS ALSO OBSERVED THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE REVENUE AND AGAINST THE ASSESSEE BY THE DECI SION OF THE HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF B.C.S. K ARTAR CHIT FUND VS.- CIT [179 ITR 137] WHEREIN IT WAS HELD THAT WHERE L OSSES SUSTAINED ARE NOT SET OFF AGAINST THE PROFITS OF THE IMMEDIATELY SUCCEEDING YEAR OR YEARS THEY CANNOT BE SET OFF AGAINST PROFITS AT A LATER DATE. TO THE SIMILAR EFFECT IS THE DECISION OF THE HONBLE MADRAS HIGH C OURT IN THE CASE OF TYRESOLES (INDIA) CALCUTTA -VS.- CIT [49 ITR 515]. RESPECTFULLY APPLYING THE RATIO OF THESE JUDICIAL PRONOUNCEMENTS WE UPHO LD THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) CONFIRMING THE DISALL OWANCE MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ASSESSEES CLAIM FO R SET OFF OF BROUGHT FORWARD LOSS OF A.YS. 2010-11 AND 2011-12 AGAINST T HE INCOME FOR THE YEAR UNDER CONSIDERATION AND DISMISS THIS APPEAL OF THE ASSESSEE. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 22 2019. SD/- SD/- (SATBEER SINGH GODARA) (P.M. JAGTA P) JUDICIAL MEMBER VICE-PRESIDENT) KOLKATA THE 22 ND DAY OF NOVEMBER 2019 COPIES TO : (1) M/S. COAST LINERS PVT. LIMITED 29D SEVEN TANKS LANE DUM DUM JUNCTION KOLKATA-700030 (2) DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(2) AAYAKAR BHAWAN P-7 CHOWRINGHEE SQUARE KOLKATA-700069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-1 KOLKA TA (4) COMMISSIONER OF INCOME TAX KOLKATA- KOLKATA; (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES KOLKATA LAHA/SR. P.S.