ITAT has directed AO to grant reduction of unabsorbed depreciation amounting to Rs.8,48,95,742/- and re-compute the book profits u/s.115JB in case of Go Airlines.

Last updated: 22 January 2021

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The Income Tax Appellate Tribunal (ITAT) has ruled in favour of Go Airlines (India) Limited regarding their tax assessment for the 2014-15 financial year. The Tribunal has directed the Assessing Officer (AO) to grant a deduction for unabsorbed depreciation amounting to Rs. 8,48,95,742. Consequently, the AO is instructed to re-compute the company's book profits as per Section 115JB of the Income Tax Act.

Court :
ITAT Mumbai

Brief :
This appeal in ITA No.3788/Mum/2018 for A.Y.2014-15 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-10, Mumbai in appeal No.CIT(A)-10/DC-5(1)(1)/390/16-17 dated 20/02/2018 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 23/12/2016 by the ld. DCIT 5(1)(1), Mumbai (hereinafter referred to as ld. AO).

Citation :
ITA No.3788/Mum/2018

IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT), ‘G‘ BENCH MUMBAI

BEFORE SHRI SAKTIJIT DEY, JM
&
SHRI M.BALAGANESH, AM

ITA No.3788/Mum/2018 (Assessment Year :2014-15)

M/s. Go Airlines (India) Limited C-1, 1st Floor, Wadia International Centre Pandurang Budhkar Marg Worli, Mumbai – 400 025
PAN/GIR No. AACCG2599K
(Appellant)

Vs.

Deputy Commissioner of Income Tax – 5(1)(1) Room No.568, 5th Floor Aayakar Bhavan, M.K.Road, Mumbai-400020
(Respondent)

Assessee by Shri Ronak Doshi

Revenue by Shri V. Vinod Kumar
Date of Hearing 27/10/2020
Date of Pronouncement 13/01/2021

O R D E R

PER M. BALAGANESH (A.M):

This appeal in ITA No.3788/Mum/2018 for A.Y.2014-15 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-10, Mumbai in appeal No.CIT(A)-10/DC-5(1)(1)/390/16-17 dated 20/02/2018 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 23/12/2016 by the ld. DCIT 5(1)(1), Mumbai (hereinafter referred to as ld. AO).

2. The first issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in upholding the action of the ld. AO in denying the adjustment in book profit by not giving deduction towards unabsorbed depreciation amounting to Rs.8,48,95,742/- on the ground that the same has already been adjusted in the preceding years.

To know more in details find the attachment file

FAQ :

The main issue was whether the Assessing Officer (AO) was justified in denying the adjustment of unabsorbed depreciation amounting to Rs. 8,48,95,742/- when calculating book profits.

The ITAT directed the AO to grant the deduction for unabsorbed depreciation amounting to Rs. 8,48,95,742/-.

The AO has been instructed to re-compute the book profits of Go Airlines under Section 115JB of the Income Tax Act, taking into account the allowed depreciation deduction.

The ruling pertains to the Assessment Year 2014-15.

The original assessment order was passed by the Deputy Commissioner of Income Tax (DCIT) 5(1)(1), Mumbai.