Commissioner of Income-tax, Hisar v. United Textiles Ltd - 2015-LL-0302-38

Citation	2015-LL-0302-38
Appellant Name	Commissioner of Income-tax, Hisar
Respondent Name	United Textiles Ltd.
Court	HIGH COURT OF PUNJAB & HARYANA
Relevant Act	Income-tax
Date of Order	02/03/2015
Assessment Year	2006-07
Judgment	View Judgment
Keyword Tags	unabsorbed depreciation • return of income • question of law • debatable issue • carry forward • set off
Bot Summary:	S.J. VAZIFDAR, ACTING CHIEF JUSTICE: This is an appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal dismissing the appellant s appeal against the order of the CIT allowing the respondent s appeal against the order of the Assessing Officer. The unabsorbed depreciation at the end of the year i.e. 31.03.2005 relevant to the Assessment Year 1998-99 to 2004-05 was about Rs.2.53 crores. The unabsorbed depreciation and an amount of Rs.16,36,286/- was set off to the extent of the available profit. The remaining unabsorbed depreciation was allowed to be carried forward to the subsequent years. The Assessing Officer issued a notice under Section 154 of the Act in view of a subsequent decision of the Income Tax Appellate Tribunal, Special Bench at Mumbai, in the case of DCIT vs. Times Guarantee Limited. As noted by the Tribunal, the option for set off and carry forward of the unabsorbed depreciation should be of the period which is more beneficial to the assessee and depreciation of the year which lapses first should have a priority in setting off. ACTING CHIEF JUSTICE 02.03.2015 parkash JUDGE PARKASH CHAND 2015.03.09 14:07 I attest to the accuracy and authenticity of this document.

IN HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH INCOME TAX Appeal No.379 of 2014 (O&M) DATE OF DECISION: 02.03.2015 Commissioner of Income Tax, Hisar ..Appellant versus United Textiles Ltd. Respondents CORAM:- HON'BLE MR.JUSTICE S.J. VAZIFDAR, ACTING CHIEF JUSTICE HON BLE MR. JUSTICE G.S. SANDHAWALIA Present: Mr. Tajender K. Joshi, Advocate for appellant .. S.J. VAZIFDAR, ACTING CHIEF JUSTICE (Oral): This is appeal under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal dismissing appellant s appeal against order of CIT (Appeals) allowing respondent s appeal against order of Assessing Officer. 2. issue pertains to Assessment Year 2006-07. respondent had filed its return of income on 15.12.2008. unabsorbed depreciation at end of year i.e. 31.03.2005 relevant to Assessment Year 1998-99 to 2004-05 was about Rs.2.53 crores. unabsorbed depreciation and amount of Rs.16,36,286/- was set off to extent of available profit. remaining unabsorbed depreciation was allowed to be carried forward to subsequent years. PARKASH CHAND 2015.03.09 14:07 I attest to accuracy and authenticity of this document ITA-379-2014 - 2 - 3. Assessing Officer issued notice under Section 154 of Act in view of subsequent decision of Income Tax Appellate Tribunal, Special Bench at Mumbai, in case of DCIT vs. Times Guarantee Limited. respondent s case is supported by judgment of Gujarat High Court in case of General Motors (India) Private Limited vs. DCIT, Special Civil Application No.1773 of 2012. Tribunal apart from following judgment of Gujarat High Court noted that this was debatable issue and not question of law alone. As noted by Tribunal, option for set off and carry forward of unabsorbed depreciation should be of period which is more beneficial to assessee and depreciation of year which lapses first should have priority in setting off. Thus, even assuming that question of law is decided in favour of department, it would be necessary to revisit issue even on facts regarding which period is more beneficial to assessee. 4. In circumstances, no question of law arises. 5. appeal is accordingly dismissed. (S.J. VAZIFDAR) ACTING CHIEF JUSTICE 02.03.2015 (G.S.SANDHAWALIA) parkash* JUDGE PARKASH CHAND 2015.03.09 14:07 I attest to accuracy and authenticity of this document Commissioner of Income-tax, Hisar v. United Textiles Ltd

Metadata

Judgment