Tax Appeal v. The Commissioner Of Income Tax“Aaykar Bhavan”Patto, Panaji, Goa. …

1 txa50-15 IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 50 OF 2015 India Furniture Products Limited,A Public Limited Company having registered Office at Jaikissan Bhawan, Zuarinagar, Goa 403726At present having the following address at G-106, SIDCO, Industrial Estate, Kakkalur, Tiruvallur – 602003,represented herein by its Whole Time DirectorShri Pervesh Kumar Gandhi, PAN Card No.AAAC21715A. …....... Appellant. Versus The Commissioner of Income Tax“Aaykar Bhavan”Patto, Panaji, Goa. …....... Respondent. Shri Menino Pereira, Advocate for the appellant. Ms. Asha Desai, Advocate for the respondent. CORAM :- F.M. REIS & NUTAN D. SARDESSAI, JJ. Date : - 6 June 2016. ORAL JUDGMENT : (PER F.M. REIS, J.) Heard Shri M. Pereira, learned Counsel appearing for theappellant and Ms. A. Desai, learned Counsel appearing for the 2 txa50-15 respondent. 2.Admit on the following substantial question of law: Whether the impugned order dated 09/02/2015 passedby the Income Tax Appellate Tribunal, Panaji, Goastands vitiated for not carrying out the calculations interms of Section 115 JB(2) of the Income Tax Act ? Learned Counsel appearing for the respondent waivesservice. Heard forthwith with the consent of the learned Counsel. 3. Shri M. Pereira, learned Counsel appearing for theappellant, during the course of hearing, has vehemently argued thatthough the appellants have brought material on record before thelearned Commissioner to establish that the appellants were entitled fordeduction of the total loss claimed to the extent of Rs.1,59,28,201/-,nevertheless, the Revenue Authorities have allowed deductions onlyfor a sum of Rs. 71,12,238/-. The learned Counsel further points outthat the amount of deduction claimed was, according to him, the losswhich was accumulated, which can be deducted whilst computing theincome. 3 txa50-15 4.Ms. Desai, learned Counsel appearing for the Revenue,however, submits that the appellants have not brought any material onrecord to establish that the amount claimed was, in fact, the losswhich can be deducted under Section 115 JB(2) of the Income TaxAct. The learned Counsel further points out that it is well settled thatwhilst computing such loss, accumulated depreciation cannot beincluded. The learned Counsel further points out that in any event, incase the appellants have produced any material which has not beenconsidered, the ITAT may re-examine the matter only on this aspect. 5.Upon hearing the learned Counsel appearing for the partiesand taking note of the contentions raised by the respective parties, wefind that there is no specific mention in the impugned order themanner of calculation of the amounts in terms of the explanation toSection 115 JB(2) of the Income Tax Act. Without going into themerits of the rival contentions, we find it appropriate to quash and setaside the impugned order of the ITAT and remand the matter to thelearned Tribunal to re-examine the matter only on this limited aspect,after hearing the parties in accordance with law. It is, however,clarified that the matter is remanded only for the restricted purpose toexamine whether the appellants are entitled to get the deduction on 4 txa50-15 account of losses incurred as provided in Section 115 JB(2) of theIncome Tax Act. In case the appellants desire to produce any furthermaterial, such material shall be considered by the Tribunal, afterhearing the parties in accordance with law. 6.In view of the above we pass the following : O R D E R (I)The appeal is partly allowed. (II)The impugned order dated 09/02/2015 passed by the Income TaxAppellate Tribunal, Panaji, Goa is partly quashed and set aside to theextent referred to herein above. (III)ITA No.292/PNJ/2014 is restored to the file of the learnedTribunal. 4 txa50-15 account of losses incurred as provided in Section 115 JB(2) of theIncome Tax Act. In case the appellants desire to produce any furthermaterial, such material shall be considered by the Tribunal, afterhearing the parties in accordance with law. 6.In view of the above we pass the following : O R D E R (I)The appeal is partly allowed. (II)The impugned order dated 09/02/2015 passed by the Income TaxAppellate Tribunal, Panaji, Goa is partly quashed and set aside to theextent referred to herein above. (III)ITA No.292/PNJ/2014 is restored to the file of the learnedTribunal. (IV)The learned Tribunal shall re-examine the matter only in the lightof the observations made herein above, after hearing the parties inaccordance with law. of the observations made herein above, after hearing the parties inaccordance with law. (V) The appeal stands disposed of accordingly. NUTAN D. SARDESSAI, J. F.M. REIS, J. ssm.