2013 (1) TMI 998 - AT - Income Tax

Summary

Issues involved:
The judgment involves issues related to re-opening of assessment u/s 147, validity of invoking provisions of s. 154 of the Act, and allowing set-off of brought forward unabsorbed depreciation.

I. ITA Nos.58 & 59/B/12 - AYs 2005-06 & 06-07 - By the assessee:
For AY 2005-06, the assessee contested the re-opening of assessment under s.147. The CIT (A) held that re-opening was permissible under the law. In AY 2006-07, the assessee challenged the validity of invoking s. 154, claiming no mistake apparent from records. The CIT (A) upheld the validity of invoking s. 154.

II. ITA Nos.254 & 255/12 - AYs 2005-06 & 06-07 - By Revenue:
The Revenue contested the direction to allow set-off of unabsorbed depreciation of AYs 1994-95 and 1995-96 against the income of AYs 2005-06 and 2006-07. The issues raised by both parties were inter-linked and heard together.

Details of the Judgment:
The assessee, engaged in the manufacture of granite tiles and slabs, had its assessments re-opened for AYs 2005-06 and 2006-07. The AO concluded the assessments, bringing certain amounts to tax. The CIT (A) directed the AO to allow set-off of unabsorbed depreciation against the incomes of the respective years.

The Revenue challenged the CIT (A)'s direction, arguing that the High Court remitted a similar issue back to the AO for fresh consideration. The Revenue contended that the CIT (A) did not fully consider the Court's ruling. The assessee argued that the AO's actions were based on a change of opinion and no fresh material was presented.

The Tribunal observed that the issues needed reconsideration. The matters related to re-opening of assessments and invoking s. 154 were remanded back to the AO for proper consideration. The Revenue's appeals were treated as allowed for statistical purposes.

In conclusion, the Tribunal ordered a fresh look into the issues raised by both parties and directed the AO to address the grievances of the assessee in accordance with the provisions of the Act. The appeals were treated as allowed for statistical purposes.