D.C.I.T. RG. 8(2), MUMBAI v. NELCO LTD., MUMBAI

ITA 5078/MUM/2012 | 2007-2008
Pronouncement Date: 26-10-2016 | Result: Dismissed

Appeal Details

RSA Number 507819914 RSA 2012
Assessee PAN AAACT1983C
Bench Mumbai
Appeal Number ITA 5078/MUM/2012
Duration Of Justice 4 year(s) 2 month(s) 16 day(s)
Appellant D.C.I.T. RG. 8(2), MUMBAI
Respondent NELCO LTD., MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 26-10-2016
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 26-10-2016
Date Of Final Hearing 03-03-2015
Next Hearing Date 03-03-2015
Assessment Year 2007-2008
Appeal Filed On 09-08-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI BEFORE SHRI JOGINDER SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 5078/MUM/2012 ASSESSMENT YEAR: 2007 - 08 DCIT RANGE 8(2) ROOM NO. 216 - A AAYAKAR BHAVAN MUMBAI - 400020 VS. NELCO LTD FRANCYSTERS CYBERNETICS CENTRE EUCHARISTIC CONGRESS BUILDING NO. III 5 CONVENT STREET COLABA MUMBAI - 400001 PAN NO. AAACT1983C APPELLANT .. RESPONDENT DATE OF HEARING: 26/10/2016 DATE OF PRONOUNCEMENT: 26/10/2016 ORDER PER N. K. PRADHAN A. M.: THIS IS AN APPEAL FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2007 - 08. IT IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 17 MUMBAI AND ARISES OUT OF THE ORDER U/S. 154 OF THE INCOME TAX ACT 1961 (THE ACT). 2. IN SHORT THE ISSUE IS WHETHER THE ASSESSEE IS ENTITLED TO CARRY FORWARD THE UNABSORBED DEPRECIATION FOR SET OFF IN FUTURE YEARS BEYOND THE PERIOD OF EIGHT YEARS. 3. THE LD. DR SUPPORTS THE ORDER OF THE ASSESSING OFFICER (AO). DEPARTMENT BY MR. MOHAMMED RIZWAN ASSESSEE BY MR. K.K.VED ITA 5078/MUM/2012 2 4. THE LD. COUNSEL OF THE ASSESSEE RE LIED ON THE ORDER OF THE ITAT B BENCH MUMBAI IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2008 - 09 IN ITA NO. 2306/MUM/2012. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. WE FIND THAT THE ISSUE IN DISPUTE IS COVERED BY THE ORDER OF THE ITAT B BENCH MUMBAI IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2008 - 09 IN ITA NO. 2306/MUM/2012 AND THE SAME READS AS UNDER: 2. IN SHORT THE ISSUE IS THAT THE ASSESSEE IS ENTITLED TO CARRY FORWARD THE UNABSORB ED DEPRECIATION FOR SET OFF IN FUTURE YEARS BEYOND A PERIOD OF EIGHT YEARS WHICH WAS NOT ACCEPTED BY THE AO AS WELL AS THE CIT(A). 3. AT THE TIME OF HEARING THE LEARNED COUNSEL FOR THE ASSESSEE RELIED UPON FOLLOWING DECISIONS IN SUPPORT OF HIS CONTENTION THAT UNABSORBED DEPRECIATION PERTAINING TO A.Y. 1995 - 96 ONWARDS CAN BE CARRIED FORWARD IN THE EVENT THAT THEY ARE NOT ABSORBED IN SUB SEQUENT YEARS AND SET OFF CAN BE CLAIMED EVEN AFTER LAPSE OF EIGHT YEARS: I. GENERAL MOTORS INDIA (P) LTD VS. DCIT - 210 TAXMAN 20 (GUJ) II. HINDUSTAN UNILEVER LTD VS. ADDL. CIT - 22 ITR (AT) 737 (MUM) III. MULTONS PVT. LTD. VS. CIT ITA NO. 3019/MUM/2012 DATED 22.05.2013 4. THE LD. DR FAIRLY ADMITTED THAT THE ISSUE STANDS COVERED BY THE AFORECITED DECISIONS THOUGH HOWEVER HE SUPPORTED THE STAND TAKEN BY THE REVENUE. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSION AND PERUSED THE RECORD. IN THE LIGHT OF THE DECISION OF THE HONBLE GUJARAT HIGH COURT (SUPRA) WHICH IN TURN WAS FOLLOWED BY THE ITAT MUMBAI BENCHES WE ARE OF THE CONSIDERED OPINION THAT THE PLEA RAISED B Y THE ASSESSEE DESERVES TO BE ACCEPTED AND WE ORDER ACCORDINGLY. 6. THE FACTS IN THE IMPUGNED ASSESSMENT YEAR BEING SAME AS IN THE ASSESSMENT YEAR 2008 - 09 WE FOLLOW THE ABOVE ORDER OF THE ITAT AND DISMISS THE APPEAL FILED BY THE REVENUE. ITA 5078/MUM/2012 3 THIS ORDER W AS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 26.10.2016. SD/ - SD/ - ( JOGINDER SINGH) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 2 6 /10/2016 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE . BY ORDER //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT MUMBAI