Tribunal dismisses Revenue's appeal due to expired time limit, deeming tax effect nil. Assessee's cross-objection also dismissed.

The Tribunal dismissed the Revenue's appeal against the deletion of an addition of Rs. 96,77,295, citing nil tax effect due to the expiry of the time limit for carry forward or set off of loss. The Tribunal also dismissed the assessee's cross-objection as academic, based on the same reasoning regarding the tax effect of the loss determined for the assessment year 2004-05.

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Issues:
1. Revenue's appeal against deletion of addition on account of adhoc disallowance of material consumed.
2. Assessee's cross-objection regarding rejection of accounts, non-admission of additional evidence, and addition of certain amounts sustained.

Analysis:
1. The Revenue appealed against the deletion of an addition of Rs. 96,77,295 made by the Assessing Officer due to adhoc disallowance of 5% out of material consumed. The Revenue argued that the books of accounts were rightly rejected, and the assessee failed to provide necessary details to the AO. The CIT(A) partly allowed the assessee's appeal, leading to the Revenue's appeal. The Tribunal noted that the loss determined was less than the declared loss, and questioned the relevance of the quantum of loss for the assessment year 2004-05 after more than eleven years had passed. The Tribunal found that if no set off of the loss was claimed in subsequent years and the time limit for carry forward or set off of loss had expired, the loss determined had no tax effect. Consequently, the Tribunal dismissed the Revenue's appeal as having nil tax effect.

2. The assessee raised multiple grounds in the cross-objection, including the rejection of accounts, non-admission of additional evidence, and the upholding of certain additions. The Tribunal considered the quantum of loss for the assessment year 2004-05 and concluded that if no set off was claimed in subsequent years and the time limit for carry forward or set off of loss had expired, the loss determined had no tax effect. Therefore, the Tribunal deemed the assessee's cross-objection as of academic nature and dismissed it along with the Revenue's appeal. The decision was pronounced on 05.09.2016 by the Tribunal comprising Shri G. D. Agrawal, Vice President, and Ms. Suchitra Kamble, Judicial Member.

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