| Case ID |
319a6f55-0936-474d-8113-ea1ec3f873d3 |
| Body |
View case body. Login to View |
| Case Number |
TC (A) No. 135 OF 2008 |
| Decision Date |
Mar 17, 2008 |
| Hearing Date |
|
| Decision |
The appeal was filed against the order of the Income-tax Appellate Tribunal, Madras 'C' Bench, regarding the set-off of prior years' business loss and unabsorbed depreciation against short-term capital gains for the assessment year 2000-01. The Tribunal allowed the assessee's claim based on the precedent set in CIT v. Pioneer Asia Packing (P.) Ltd. The court held that the assessee was entitled to the unabsorbed depreciation brought forward as on 1-4-1997 and could set it off against short-term capital gains. The court dismissed the appeal as no substantial question of law was involved. |
| Summary |
In the case of TC (A) No. 135 OF 2008, decided by the Madras High Court on March 17, 2008, the court addressed the issue of set-off of prior years' unabsorbed depreciation against short-term capital gains under Section 32 of the Income Tax Act, 1961. The case arose when the assessee attempted to set off business losses and unabsorbed depreciation for the assessment year 2000-01. The Assessing Officer disallowed this claim, leading to an appeal. The Commissioner of Income Tax (Appeals) allowed the claim, which was further contested by the Revenue before the Income-tax Appellate Tribunal. The Tribunal ruled in favor of the assessee, referencing previous case law, specifically CIT v. Pioneer Asia Packing (P.) Ltd. The High Court upheld the Tribunal's decision, reaffirming that unabsorbed depreciation as of April 1, 1997, could still be utilized against taxable business profits. The decision is significant for tax practitioners and businesses seeking clarity on the treatment of unabsorbed depreciation in relation to capital gains. Keywords include 'Income Tax Act', 'depreciation allowance', 'short-term capital gains', and 'tax litigation'. |
| Court |
Madras High Court
|
| Entities Involved |
Income Tax Appellate Tribunal,
S & S Power Switchgear Ltd.
|
| Judges |
K. Raviraja Pandian,
P.P.S. Janarthana Raja
|
| Lawyers |
Not available
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
S & S Power Switchgear Ltd.
|
| Citations |
2009 SLD 949,
(2009) 318 ITR 187
|
| Other Citations |
Uttam Air Products v. Deputy CIT [2006] 99 TTJ 718 (Delhi),
Commissioner of Income-tax v. Pioneer Asia Packing P. Ltd. [2009] 310 ITR 0198 (Mad.)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
32
|