Itxa/3360/2010 Of The Commissioner Of Income Tax -3 Mumbai v. Emerson Process Management

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.3360 OF 2010 The Commissioner of Income Tax-3 ..Appellant. V/s. M/s. Emerson Process Management (India) Ltd. ..Respondent. Mr. Vimal Gupta for the appellant. None for the respondent. CORAM : J.P. DEVADHAR AND A.A.SAYED, JJ. DATED : 19TH JULY, 2011 P.C. :- 1.The question of law raised in this appeal by the revenue reads thus :- " Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in allowing the claim of the assessee company of set off of unabsorbed business losses / depreciation for AY 1996-1997 and 1997-1998 against the business profit of the Non-Daman unit for the AY 2004-2005 being the year under appeal ? " The assessment year in question is AY 2004-05. 3.The grievance of the revenue is that the Tribunal ought not to have allowed the claim of the assessee to set off of unabsorbable business losses / depreciation relating to AY 1996-97 and 1997-98 from the income in the year in question. There is nothing on record to suggest that the unabsorbed business losses / depreciation allowed to be carried forward in those assessment years have been disturbed by the order of any higher authority. If in law, the assessee is entitled to carry forward the unabsorbed business losses / depreciation, then there is no reason as to why the same cannot be allowed to be set off in the assessment year in question. In this view of the matter, the order of the Tribunal permitting the assessee to allow set-off of unabsorbed business losses / depreciation cannot be faulted. Accordingly, we see no merit in the appeal. The appeal is dismissed with no order as to costs. (A.A. SAYED, J.) (J.P. DEVADHAR, J.)