Principal Commissioner Of Income Tax-2,Kolhapur v. M/S Rds Construction Company

1 / 3 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1614 OF 2016 Principal Commissioner of Income Tax-2,Kolhapur .... Appellant versus M/s RDS Construction Company ... Respondent ….... Mr.N.N. Singh, Advocate for Appellant.Mr.N.N. Singh, Advocate for Appellant.•Mr.Rohan Deshpande, Advocate for Respondent.Mr.Rohan Deshpande, Advocate for Respondent. CORAM : AKIL KURESHI & SARANG V. KOTWAL, JJ.: 01[st] APRIL, 2019. DATE P.C. : 1. The Income Tax Appeal is filed by the revenue tochallenge the Judgment of Income Tax Appellate Tribunal. Byan order dated 13/02/2019, the questions (A) to (E) containedin the Appeal memo were disposed of. The sole question (F) waskept for hearing. This question reads as under; “(F) Whether on the facts and in the circumstancesof the case and in view, the ITAT was justified in allowing the assessee's claim of deduction u/s 80IA(4)(iv) by adjusting loss suffered by it from eligiblebusiness against its products earned from civilconstruction activity; ignoring the crystal clearprovisions of sub-section (50 of Section 80IA of theIT Act, 1961?” 2. Learned Counsel for the Respondent/Assessee brought to our notice an order dated 27/02/2019 passed in Income TaxAppeal No.1773/16, in which this very question in case ofassessee’s sister concern, came up for consideration. The Courtrejected the question making following observations; “The sole surviving question (h) relates tointerpretation of the sub-section (5) of Section 80IAof the Income Tax Act, 1961 (in short “the Act”).The learned Counsel for the Assessee brought to ournotice the decision of the Division Bench of MadrasHigh Court in case of Velayudhaswamy SpinningMills (P) Ltd., v/s. Asst. CIT reported in 340 ITR477, in which, in similar factual back-ground, thisquestion was considered by the Court at length. Itwas held that, once assessee exercised the right to change the 'initial assessment year', only loss of theyears beginning from initial assessment year are tobe brought forward and not losses of the earlieryears which were already set off against income ofthe assessee. Sub-section (5) of Section 80IA of theAct does not allow Revenue to look backward andfind out if there is any loss of earlier years and bringforward the same notionally, even though, the samewere set off against other income of the assessee andset it off against current income of the eligiblebusiness. In view of above, this question is also notentertained.” 3. In view of this, no question of law arises in this Appeal. Income Tax Appeal is dismissed. (SARANG V. KOTWAL, J.) (AKIL KURESHI, J.)