MALCO ENERGY LTD., MUMBAI v. DCIT, CIRCLE- 10(2)(2), MUMBAI

ITA 1530/MUM/2019 | 2014-2015
Pronouncement Date: 08-03-2021 | Result: Allowed

Appeal Details

RSA Number 153019914 RSA 2019
Assessee PAN AAHCS6896A
Bench Mumbai
Appeal Number ITA 1530/MUM/2019
Duration Of Justice 1 year(s) 11 month(s) 24 day(s)
Appellant MALCO ENERGY LTD., MUMBAI
Respondent DCIT, CIRCLE- 10(2)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 08-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 08-03-2021
Last Hearing Date 27-10-2020
First Hearing Date 27-10-2020
Assessment Year 2014-2015
Appeal Filed On 14-03-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (V I RTUAL COURT) D BENCH MUMBAI BEFORE : SHRI M.BALAGANESH AM & SHRI PAVAN KUMAR GADALE JM ITA NO. 1530 /MUM/ 20 19 ( ASSESSMENT YEAR : 2014 - 1 5 ) M/S. MALCO ENERGY LIMITED 75 NEHRU ROAD VILE PARLE (E) MUMBAI 400 099 VS. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 10(2)(2) MUMBAI 400 020 PAN/GIR NO. AAHCS6896A (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY SMT FERESHTE D SETHNA REVENUE BY SHRI SHISHIR DHAMIJA DATE OF HEARING 18 / 02 /202 1 D ATE OF PRONOUNCEMENT 08/03 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 1530/MUM/2019 FOR A.Y. 2014 - 15 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 17 MUMBAI IN APPEAL NO. CIT(A) - 17/IT - 34 3/11028/16 - 17 DATED 27/12/2018 (LD. CIT(A) IN SHORT) AGAINST THE ORDER OF ASSESSMENT PASSED U/S.14 4 OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS ACT) DATED 31/12/2016 BY THE LD. DY. COMMISSIONER OF INCOME TAX - 10(2)(2) MUMBAI (HEREINAFTER REFERR ED TO AS LD. AO). ITA NO . 1530/MUM/2019 M/S. MALCO ENERGY LTD. 2 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. SET OFF OF LOSSES/UNABSORBED DEPRECIATION 1.1 FOR THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD CIT(APPEALS) ERRED IN NOT CONCLUDING THE GROUND RE SET O FF OF LOSSES/UNABSORBED DEPRECIATION AND ERRED IN NOT DISMISSING THE ACTION OF THE LD AO OF NOT ALLOWING SET OFF OF BROUGHT FORWARD BUSINESS LOSSES OF RS. 16 80 23 720 PERTAINING TO AY 2009 - 10 AND RS. 53 78 75 335 PERTAINING TO AY 2011 - 12 EVEN THOUGH THE S AME WAS AVAILABLE AND WAS CLAIMED BY THE APPELLANT COMPANY IN ITS RETURN OF INCOME. 1.2 FOR THAT ON THE FACTS AND CIRCUMSTANCE OF THE CASE THE LD CIT(APPEALS) ERRED IN NOT APPRECIATING THE FACT THAT THE THE LEARNED ASSESSING OFFICER HAS ERRED IN SE TTING OFF THE PROFITS FOR THE YEAR AGAINST UNABSORBED DEPRECIATION WHEN THE ASSESSEE HAS BROUGHT FORWARD BUSINESS LOSSES FOR EARLIER YEARS. 1.3 FOR THAT ON THE FACTS AND CIRCUMSTANCE OF THE CASE THE LD CIT(APPEALS) ERRED IN MERELY STATING THAT THE SET OFF OF LOSSES AND UNABSORBED DEPRECIATION HAS BEEN DISALLOWED AS PER THE PROVISIONS OF THE ACT AND NOT EXPLAINING THE SAME BASIS OF ANY PROVISIONS OF THE ACT AND ERRED IN NOT APPRECIATING THE FACT THAT THE LEARNED ASSESSING OFFICER HAS FAILED TO GIVE E FFECT TO THE PROVISIONS OF SECTION 72 SUB SECTION) WHICH CLEARLY SPECIFIES THE ORDER OF SET OFF AMONG UNABSORBED DEPRECIATION AND BROUGHT FORWARD BUSINESS LOSS. 2. DISALLOWANCE OF ADDITIONAL DEPRECIATION FOR THAT ON THE FACTS AND CIRCUMSTANCE OF THE CA SE THE LD CIT(APPEALS) ERRED IN CONFIRMING THE ACTION OF THE LD. AO IN DISALLOWING RS. 38 90 015 FOR CLAIM OF ADDITIONAL DEPRECIATION AT THE RATE OF 10% FOR ASSETS ACQUIRED IN SECOND HALF OF AY 2013 - 14 EVEN THOUGH THE SAME WAS CLAIMED IN THE RETURN OF INC OME FOR THE AY 2014 - 15 AS PER SECTION 32(L)(IIA) OF THE ACT WHILE COMPUTING TOTAL INCOME UNDER NORMAL PROVISIONS OF THE ACT AND AS SUCH THE SAME NEEDS TO BE DELETED. 3. DISALLOWING LOSS PURSUANT TO SLUMP SALE FOR THAT ON THE FACTS AND CIRCUMSTANCE OF TH E CASE THE LD CIT(APPEALS) ERRED IN CONFIRMING THE ACTION OF THE LD. AO IN DISALLOWING RS. 32 92 00 000 BEING LOSS PURSUANT TO SLUMP SALE OF POWER BUSINESS DEBITED TO THE P&L ACCOUNT IN SPITE OF THE FACT THAT THE SAME WAS SUO MOTO DISALLOWED BY THE APPELL ANT COMPANY IN ITS RETURN OF INCOME AND HENCE SUCH DISALLOWANCE AMOUNTS TO DOUBLE DISALLOWANCE AND HENCE NEEDS TO BE DELETED. ITA NO . 1530/MUM/2019 M/S. MALCO ENERGY LTD. 3 4. THE ABOVE GROUNDS ARE WITHOUT PREJUDICE AND INDEPENDENT TO EACH OTHER. 5. FOR THAT THE APPELLANT COMPANY CRAVES INDULGENC E TO ADD TO AMEND ALTER MODIFY ADD TO OR FOREGO ANY OF THE ABOVE GROUNDS OF APPEAL ON OR BEFORE THE HEARING OF THE APPEAL. 3 . AT THE OUTSET WE FIND THAT THE LD. CIT(A) HAD PASSED AN EXPARTE ORDER WITHOUT PERSONAL APPEARANCE FROM THE SIDE OF THE ASSE SSEE. THOUGH THE ASSESSEE HAS BEEN GIVEN SUFFICIENT OPPORTUNITIES BEFORE THE LD. CIT(A) STILL AS A LAST AND FINAL OPPORTUNITY WE DEEM IT FIT IN THE NATURAL OF JUSTICE AND FAIR PLAY CONSIDERING THE GRAVITY OF THE ISSUES INVOLVED TO REMAND THIS APPEAL TO THE FILE OF THE LD. CIT(A) FOR DENOVO ADJUDICATION IN ACCORDANCE WITH LAW. THE ASSESSEE IS DIRECTED NOT TO SEEK ANY ADJOURNMENT EXCEPT DUE TO UNAVOIDABLE CIRCUMSTANCES AND CO - OPERATE WITH THE LD. CIT(A) FOR EXPEDITIOUS DISPOSAL OF THE APPEAL. THE ASSESSEE IS AT LIBERTY TO FURNISH FRESH EVIDENCES IF ANY IN SUPPORT OF ITS CONTENTIONS. ACCORDINGLY THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE S . 4 . IN THE RESULT APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONO UNCED ON 08 / 03 /202 1 BY WAY OF PROPER MENTIONING IN THE NOTICE BOARD. SD/ - ( PAV AN KUMAR GADALE ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 08 / 03 / 2021 KARUNA SR .PS ITA NO . 1530/MUM/2019 M/S. MALCO ENERGY LTD. 4 COPY OF THE ORDER FORWARDED TO : BY ORDER ( ASSTT. REGISTRAR) ITAT MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) MUMBAI. 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY//