Vadilal Dairy International Ltd. Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that provisions of Sick Industrial Companies Act [SICA] would override the provisions of Income Tax Act. Thus, set off of business loss granted on the basis of Board for Industrial and Financial Reconstruction [BIFR] order.
Facts- The assessee is a Company engaged in the manufacture of Milk and Milk Products. During the course of assessment proceedings, it was noted from the computation of income that the assessee has set off the business loss of Rs. 4,37,55,674/- for A.Y. 2015-16 against the brought forward business loss of A.Y. 2007-08. Further, the assessee has set off the income from ‘other sources’ of Rs.6,63,656/- for A.Y. 2015-16 against the unabsorbed depreciation of A.Y. 2002-03. However, on perusal of the return of income for A.Y. 2007-08 it was found that no such loss has been incurred during that year which could be carried forward to further years. Also no such proof such has been given by the assessee to claim the set off of unabsorbed depreciation of A.Y. 2002-03 of Rs. 6,63,656/- against the income of A.Y 2015-16.
A.O. did not allow set off brought forward business losses against business income of the year under consideration since the same was in violation of Section 72(3) of the Act. CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
