2017 (12) TMI 866

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....Tribunal"), in ITA No.416/Ahd/2014 and ITA No.424/Ahd/2014 by proposing the following common question stated to be a substantial question of law: "Whether the Appellate Tribunal has erred in law and on facts in holding the assumption of jurisdiction u/s 148 of the Act was bad in Law?" 2. The assessment year is 2006-07. The assessee company is engaged in the business of manufacturing of PVC foam profiles. The assessment came to be framed under section 143(3) of the Act on 20.11.2008 for the year under consideration. Thereafter, the assessment was reopened by issuance of notice dated 21.02.2011, under section 148 of the Act for assessment year 2006-07. The assessment was sought to be reopened on two grounds: firstly, as to why una....

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....efore the Tribunal, challenging the assumption of jurisdiction under section 147 of the Act, while the revenue preferred an appeal against the order of the Commissioner (Appeals) allowing carry forward of unabsorbed depreciation alleging contravention of the provisions of section 32(2) of the Act. 6. By the impugned order, the Tribunal has held that the assessment year 2006-07 was merely a transient year where the carry forward of earlier year had been brought forward to that year and again carried forward to the next year for set off in the appropriate assessment year. The Tribunal was of the view that the disclosure of unabsorbed depreciation for assessment year 2006-07 had no impact on the "chargeable income" for assessment year 2006-....

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....isdiction under section 147 of the Act." 8. Mr. M.R. Bhatt, Senior Advocate, learned counsel for the appellant, very fairly invited the attention of this court to the decision of this court in the case of General Motors India P. Ltd. V. Deputy Commissioner of IncomeTax, [2013] 354 ITR 244 (Guj.), to submit that the controversy involved in the first ground for reopening the assessment, stands concluded in favour of the assessee by this decision. 9. However, insofar as the second ground for reopening the assessment is concerned, the attention of the court was invited to clause (i) of Explanation1 to section 115JB of the Act, to submit in terms thereof, the "book profit" is required to be increased by the amount or amounts set aside as p....