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[Cites 2, Cited by 1]

Calcutta High Court

Commissioner Of Income Tax vs Greater Calcutta Gas Supply Corpn. Ltd on 20 November, 2008

Author: Pinaki Chandra Ghose

Bench: Pinaki Chandra Ghose

                             ITA No. 791 of 2008
                        IN THE HIGH COURT AT CALCUTTA
                     Special Jurisdiction (Income Tax)




                COMMISSIONER OF INCOME TAX, KOL-III, KOL.

                                   Versus

                   GREATER CALCUTTA GAS SUPPLY CORPN. LTD.




BEFORE:
The Hon'ble JUSTICE PINAKI CHANDRA GHOSE

The Hon'ble JUSTICE TAPAS KUMAR GIRI
Date : 20th November, 2008.


         The Court : After hearing the learned counsel appearing for the

 appellant the appeal is admitted and the following substantial questions

 of law are referred for adjudication :

         a.    Whether on the facts and in the circumstances of the case

 Tribunal has erred in allowing assessee's claim of Rs. 6,98,21,526/- in

 Financial Year 2001-02 on account of depreciation on plant and machinery

 which was disallowed by the Assessing Officer and confirmed by the CIT

 (Appeals), by disregarding the admitted position that the authority to

 capitalize the assets in question was obtained on 9th October, 2002?

         b.    Whether on the facts and in the circumstances of the case

 Tribunal has erred in allowing assessee's claim of interest in respect of

 Assessment Year 2003-04, amounting to Rs.9,63,85,616/- on loan obtained

 from Govt. of West Bengal which was disallowed by the Assessing Officer

 under   Section   43B of Income   Tax Act,   1961, by holding that   by   mere

 creation of   a provision of liability that has not yet been ascertained is
                                            2


     not allowable under the Income Tax Act, 1961, and which was confirmed by

     the CIT (Appeals)?

            Let the Paper Book be prepared by the appellant and be served upon

     the respondent within 8 weeks from date.         Let the appeal appear 10 weeks

hence.

All parties concerned are to act on a xerox signed copy of this order on the usual undertakings.

Urgent xerox certified copy of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities.

(PINAKI CHANDRA GHOSE, J.) (TAPAS KUMAR GIRI, J.) Kc.

R.O.(ct.)