TaxTMI 
TaxTMI 
2011 (1) TMI 1414
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....Revenue the sole ground taken is that the Learned Commissioner of Income Tax (Appeals) erred in law and on facts in directing the Learned Assessing Officer to allow set off of unabsorbed depreciation relating to the assessment year 1993-94 to 1997-98 assessed under section 69 of the Income Tax Act, 1961 under the head income from other source. 2. The brief facts relating to the controversy involved in the ground of appeal of the case are that the Learned Assessing Officer in the original assessment completed on 22-3-2000 under section143(3) of the Act made the additions in the assessment under the head unaccounted income from illegal transactions of Rs. 3,85,35,407/-, the details of which are as under :- i) Unaccounted income. &nbs....
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....onable opportunity to the assessee. 4. The Learned Commissioner of Income Tax (Appeals) in the original proceedings out of addition of Rs. 3,85,35,407/- confirmed the addition of Rs. 1,88,10,304/- comprising of unaccounted transaction and other additions of Rs. 51,02,500/-, Rs. 28,25,000/- and Rs. 1,16,25,000/-.The Tribunal confirmed the finding of the Learned Commissioner of Income Tax (Appeals) that the return filed by the assessee under section. 139(3) of the Act was invalid and therefore, the assessee was not entitled to carry forward of the loss as determined during the assessment year under consideration. 5. The Tribunal gave relief of Rs. 12,44,440/- out of the addition of Rs. 1,88,10,304/- although the return of the current ye....
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....gular business transactions of the assessee but not accounted by the assessee in the books of accounts. It was submitted that in the return filed for the year under appeal, the assessee has shown brought forward loss of earlier years which should be set off against the business income of the year under consideration as under:- A.Y. Business loss Depreciation Total 92-93 67,30,821 Nil 67,30,821 93-94 1,46,36,152 10,13,53,345 11,59,89,497 94-95 Nil 2,02,51,256 2,02,51,256 95-96 Nil 71,19,092 71,19,092 96-97 13,09,79,683 5,59,92,204 18,69,71,887 97-98 20,41,59,338 4,28,03,908 24,69,17,246 Total. 35,64,59,994 32,75,19,805 58,39,79,799 ....
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....year i.e. A.Y. 1997-98 Rs. 2,34,10,540/-, in that case resulted income would be net loss. Accordingly, he directed the Learned Assessing Officer to allow set off of unabsorbed depreciation for these years against the income for A.Y. 1997-98 and carry-forward of the balance unabsorbed depreciation for A. Yrs. 1993-94 to 1995-96 for set off against the income of subsequent years. 9. Being aggrieved against the above order of the Learned Commissioner of Income Tax (Appeals) the Revenue is in appeal before us taking the above ground of appeal. The Learned Departmental Representative relied on the order of the Learned Assessing Officer. 10. Notice of hearing was sent to the respondent assessee which was served on the assessee on 10-12-2010....
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....income from other sources. Section 70 does not prohibit such set off. Therefore, we do not find any error in the order of the Learned Commissioner of Income Tax (Appeals) which is hereby confirmed and the ground of appeal of the Revenue is dismissed. 12. In the penalty appeal, the Revenue has challenged the deletion of penalty of Rs. 99,88,000/- under section 271(1)(c) of the Act by the Learned Commissioner of Income Tax (Appeals).We find that the Learned Commissioner of Income Tax (Appeals) has deleted the penalty by observing as under :- "I have passed an order under section 254 of the Act on22-5-2008 in the quantum appeal in pursuance to the order of ITAT in MA No.229/AHD/2007 allowing set off of brought forward depreciation ....
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....in our considered view it shall be in the interest of justice to set aside the order of the CIT(A) and restore the appeal back to the file of the Learned Commissioner of Income Tax (Appeals) for deciding the same on other grounds of appeal of the assessee on merits. We order accordingly. 14. Thus the appeal of the Revenue is allowed for statistical purposes. ITA. No.2722/AHD/2008. 15 This is an appeal filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals)-VIII, Ahmedabad , dated 13-6-2001. 16. The notice of hearing was sent by Registered Post with acknowledgement due on 2-12-2010 and the same was served on the assessee on10-12-2010 as evidenced by the acknowledgement card of Post Office placed....