Gabriel India Limited Vs DCIT (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT) Mumbai has remanded the case of Gabriel India Limited v. DCIT for the second time, concerning an addition of Rs. 72,15,983 made by the Assessing Officer (AO) for Assessment Year 2011-12. The dispute revolves around Gabriel India’s claim to treat capital work-in-progress, specifically related to the abandoned Singur plant, as a business loss under Section 28 of the Income-Tax Act, 1961.
Gabriel India initially filed its return for A.Y. 2011-12 declaring an income of Rs. 34.95 crore, later revised to Rs. 36.07 crore. The case underwent scrutiny, and the AO, in an order dated March 11, 2014, added Rs. 72,15,983 along with other adjustments, assessing the total income at Rs. 39.13 crore.
The company appealed to the Commissioner of Income-tax (Appeals) [CIT(A)], who dismissed the appeal on March 28, 2016. Gabriel India then approached the ITAT. In its first ruling on July 10, 2018, the ITAT observed that the CIT(A) had not addressed the assessee’s argument regarding the treatment of the amount as business income. Consequently, the Tribunal restored the matter to the CIT(A) for a fresh decision on the merits of this specific claim.
However, in the subsequent order dated June 14, 2024, the CIT(A) rejected Gabriel India’s request to present additional evidence and noted that the company had not initially claimed the “capital work in progress written off and debited to P&L account” of Rs. 72,15,983. This led to the dismissal of the assessee’s appeal once more.
