Income Tax Appellate Tribunal - Ahmedabad
Dy.Cit.,Circle-4,, Ahmedabad vs Gujarat Agro Industries Corporation,, ... on 6 February, 2017
आयकर अपील
य अ धकरण, अहमदाबाद यायपीठ 'बी', अहमदाबाद ।
IN THE INCOME TAX APPELLATE TRIBUNAL
" B " BENCH, AHMEDABAD
सव ी आर.पी.तोलानी, या यक सद य एवं द प कुमार के डया, लेखा सद य के सम!।
BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER
And SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER
आयकर अपील सं./I.T.A. No.3003/Ahd/2013
( नधा रण वष / Assessment Year : 2007-08)
The DCIT बनाम/ Gujarat Agro Industries
Circle-4 Vs. Corporation
Ahmedabad Khet Bhavan
Off. Ashram Road
Nr.Old High Court
Ahmedabad
थायी ले खा सं . /जीआइआर सं . / PAN/GIR No. : AAACG 5620 R
(अपीलाथ( /Appellant) .. ( )यथ( / Respondent)
अपीलाथ( ओर से / Appellant by : Mr.James Kurian, Sr.DR
)यथ( क+ ओर से/Respondent by : Ms. Aarti N. Shah, AR
ु वाई क+ तार ख /
सन Date of Hearing 25/01/2007
घोषणा क+ तार ख /Date of Pronounce ment 6/02/2017
आदे श / O R D E R
PER PRADIP KUMAR KEDIA, AM:
The captioned appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-VIII, Ahmedabad [CIT(A) in short] dated 12/09/2013 arising out of the assessment order passed under section 143(3) r.w.s.147 of the Income Tax Act, 1961 ITA No.3003/Ahd/2013 DCIT vs. Gujarat Agro Indu.Corpn.
Asst.Year - 2007-08 -2- (hereinafter referred to as "the Act") dated 22/02/2013 for Assessment Year Assessment Year (AY) 2007-08.
2. The ground of appeal raised by the Revenue reads as under:-
1. The ld.CIT(A) has erred in law and on facts in deleting the addition of Rs.1,21,19,801/- made to the book profit being lower of losses brought forward or unabsorbed depreciation of AYs 2000-0, 2001-02 and 2002-03 without properly appreciating the facts of the case and the material brought on record.
3. Briefly stated, the assessee-company filed its return of income for AY 2007-08 declaring total income at Rs.42,86,990/- under the normal provisions of Act and book profit was declared at Rs.3,72,85,814/- under section 115JB of the Act. The return was subjected to scrutiny and the assessment was completed under section 143(3) vide order dated 24/12/2009. Subsequently, it was noticed by the Assessing Officer (AO) that income chargeable to tax has escaped assessment in respect of the impugned assessment year. As per the reasons recorded under section 148 supplied to the assessee, it was alleged by the AO that book profit under section 115JB by the assessee was calculated after incorrectly deducting brought forward losses of Rs.1,21,19,801/-. It was also alleged that brought forward losses were already adjusted in AY 2003-04 and thus the book profit of the assessee for the year under consideration was under assessed by an amount of Rs.1,21,19,801/-. It was observed by the AO that no specific objection was filed in consequence of reasons ITA No.3003/Ahd/2013 DCIT vs. Gujarat Agro Indu.Corpn.
Asst.Year - 2007-08 -3- supplied to the assessee which specifically speaks about escapement of income in reporting of book profits. The AO in consequence of the notice issued under section 148 of the Act, enhanced the book profit by the aforesaid amount of brought forward loss of Rs.1,21,19,801/- as not allowable to be adjusted and computed the book profit at Rs.4,94,05,615/- in the reassessment order dated 22/02/2013.
4. In the first appeal against the reassessment order, the CIT(A) set aside and cancelled the recomputation of book profit made under section 115JB for the AY 2007-08 accepting the contention of assessee that no such loss was actually adjusted in AY 2003-04. It was noted by the CIT(A) that the assessment for AY 2003-04 was made at a figure of loss of Rs.1,97,51,522/- and therefore in view of the loss as per books, there was no question of any adjustment towards unabsorbed business loss or depreciation for working out any book profit. Accordingly, the action of the AO towards adjustment in book profit in the reassessment proceedings was struck down by the CIT(A).
5. Aggrieved by the order of the CIT(A), the Revenue is in appeal before the Tribunal.
6. The Ld.DR relied upon the order of the AO.
ITA No.3003/Ahd/2013DCIT vs. Gujarat Agro Indu.Corpn.
Asst.Year - 2007-08 -4-
7. The Ld.AR, on the other hand, reiterated its submissions made before the AO as well as CIT(A) and referred to the computation of income relevant to AY 2003-04 to say that in view of negative book profit assessable under section 115JB there was no occasion for the assessee to adjust the brought forward loss alleged by the AO in the reassessment proceedings. The Ld.AR thus submitted that the CIT(A) has correctly appreciated the facts in perspective and granted relief in accordance with law. It was thus submitted that no interference with the order of the CIT(A) is called for.
8. On careful consideration of the rival submissions in the light of facts noted above, we do not find any tangible reason to interfere with the order of the CIT(A). We take note of the fact that the assessee has denied, both before the AO as well as before the CIT(A), to have claimed any set off of unabsorbed loss in the AY 2003-04 as alleged in the reasons recorded. The assertions made by the AO has not been rebutted by the AO. On the contrary, averments made by the assessee are corroborated by the documentary evidences in the form of computation of income, return of income, assessment order, etc. In the backdrop of these facts, it is manifest that the AO proceeded to reassess the book profits on wrong assumption of facts. Thus, the relief granted by the CIT(A) is undoubtedly within the bounds of law. We therefore do not ITA No.3003/Ahd/2013 DCIT vs. Gujarat Agro Indu.Corpn.
Asst.Year - 2007-08 -5- see any justification in the appeal of the Revenue and accordingly appeal filed by the Revenue is liable to be dismissed.
9. In the result, appeal of the Revenue is dismissed.
This Order pronounced in Open Court on 6/02/2017
Sd/- Sd/-
(आर.पी.तोलानी) ( द प कुमार के डया)
या यक सद य लेखा सद य
( R.P. TOLANI ) ( PRADIP KUMAR KEDIA )
JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 6/ 02 /2017
ट .सी.नायर, व. न.स./T.C. NAIR, Sr. PS
आदे श क त"ल#प अ$े#षत/Copy of the Order forwarded to :
1. अपीलाथ( / The Appellant
2. )यथ( / The Respondent.
3. संबं5धत आयकर आयु7त / Concerned CIT
4. आयकर आय7
ु त(अपील) / The CIT(A)-VIII, Ahmedabad
5. 8वभागीय त न5ध, आयकर अपील य अ5धकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड फाईल / Guard file.
आदे शानुसार/ BY ORDER, स)या8पत त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad
1. Date of dictation .. 25.1.17 (dictation-pad 10- pages attached at the end of this appeal-file)
2. Date on which the typed draft is placed before the Dictating Member ...25/30.1.17
3. Other Member...
4. Date on which the approved draft comes to the Sr.P.S./P.S.................
5. Date on which the fair order is placed before the Dictating Member for pronouncement......
6. Date on which the fair order comes back to the Sr.P.S./P.S.......6.2.17
7. Date on which the file goes to the Bench Clerk.....................6.2.17
8. Date on which the file goes to the Head Clerk..........................................
9. The date on which the file goes to the Assistant Registrar for signature on the order..........................
10. Date of Despatch of the Order..................