The Commissioner of Income-tax, Chennai v. Comstar Automotive Technologies Pvt. Ltd
[Citation -2020-LL-0706-21]

Citation 2020-LL-0706-21
Appellant Name The Commissioner of Income-tax, Chennai
Respondent Name Comstar Automotive Technologies Pvt. Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 06/07/2020
Assessment Year 2003-04
Judgment View Judgment
Keyword Tags unabsorbed depreciation • eligible undertaking • gross total income • depreciation loss • set off
Bot Summary: Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 25.10.2018 made in ITA.No. 209/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2003-04. The appeal has been admitted on 08.7.2019 on the following substantial questions of law : i. Whether the set off of brought forward unabsorbed depreciation of the Assessment year 2001-02 and 2002-03 are to be first set off before considering deduction under Section 10B for the assessment year 2003-04 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the deduction under Section 10B is to be allowed without considering the depreciation loss, when it was held by the Apex Court in the case of Yokogawa India Ltd that the deduction under Section 10B is to be allowed while computing the gross total income of the eligible undertaking under Chapter -IV of the Income Tax Act And 3. 301 of 2019 depreciation loss of Section 10B unit cannot be set off against other incomes, which was neither overruled nor discussed in Yokogawa India Ltd reported in 77 Taxmann.com page 41 4. 228 of 2011 dated 18.3.2020, by which, the assessee's appeal was allowed and the substantial questions of law were answered in favour of the assessee. Following the said decision, the above tax case appeal filed by the Revenue is dismissed and the substantial questions of law are answered in favour of the assessee and against the Revenue.


TCA.No.301 of 2019 In High Court of Judicature at Madras Dated : 06.7.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.301 of 2019 Commissioner of Income Tax, Chennai ...Appellant Vs M/s.Comstar Automotive Technologies Pvt. Ltd., Chengalpattu-600204. ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 25.10.2018 made in ITA.No.209/Chny/2018 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2003-04. For Appellant: Mr.T.Ravikumar, SSC & Mrs.R.Hemalatha, SSC For Respondent: Mr.R.Sivaraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for appellant Revenue and Mr.R. Sivaraman, learned counsel appearing for respondent. 1/4 http://www.judis.nic.in TCA.No.301 of 2019 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 (for short, Act) is directed against order dated 25.10.2018 made in ITA.No.209/Chny/2018 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench (for brevity, Tribunal) for assessment year 2003-04. 3. appeal has been admitted on 08.7.2019 on following substantial questions of law : i. Whether set off of brought forward unabsorbed depreciation of Assessment year 2001-02 and 2002-03 are to be first set off before considering deduction under Section 10B for assessment year 2003-04? 2. Whether on facts and in circumstances of case, Tribunal was right in law in holding that deduction under Section 10B is to be allowed without considering depreciation loss, when it was held by Apex Court in case of Yokogawa India Ltd that deduction under Section 10B is to be allowed while computing gross total income of eligible undertaking under Chapter -IV of Income Tax Act? And 3. Whether Tribunal ought to have applied decision of Apex Court in case of Himatsingke Seide reported in 48 Taxmann.com page 357 SC which had held that unabsorbed 2/4 http://www.judis.nic.in TCA.No.301 of 2019 depreciation loss of Section 10B unit cannot be set off against other incomes, which was neither overruled nor discussed in Yokogawa India Ltd reported in 77 Taxmann.com page 41? 4. It is submitted by learned counsel on either side that issue involved in this appeal is covered by decision in assessee's own case in TCA.No.228 of 2011 dated 18.3.2020, by which, assessee's appeal was allowed and substantial questions of law were answered in favour of assessee. 5. Following said decision, above tax case appeal filed by Revenue is dismissed and substantial questions of law are answered in favour of assessee and against Revenue. No costs. 06.7.2020 To Income Tax Appellate Tribunal, Chennai 'C' Bench. RS 3/4 http://www.judis.nic.in TCA.No.301 of 2019 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.301 of 2019 06.7.2020 4/4 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. Comstar Automotive Technologies Pvt. Ltd
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