Question 1

What are the key legal issues in Central Warehousing Corporation vs. Income Tax Officer?

Accepted Answer

1. Disallowance of social obligation expenses of Rs 5,75,000/- 2. Disallowance of impairment loss of capital assets of Rs 36,96,098/-

Question 2

What are the facts of Central Warehousing Corporation vs. Income Tax Officer?

Accepted Answer

The appeal in ITA No.5661/Del/2013 for AY 2006-07, arises out of the order of the Commissioner of Income Tax (Appeals)-VI, New Delhi in Appeal No. 223/11-12 dated 21.08.2013 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 dated 24.01.2012 by the Assessing Officer, ITO, Ward-3(2), New Delhi. The assessee, Central Warehousing Corporation, filed its original return of income for the Asst Year 2006-07 on 29.11.2006 declaring total income of Rs Nil after setting off of brought forward business loss of Rs 107,49,47,352/- under normal provisions of the Act and book profit of Rs 101,97,83,073/- u/s 115JB of the Act. The assessee subsequently filed its revised return of income declaring Nil income after setting off of brought forward loss of Rs 27,05,98,726/- under normal provisions of the Act and book profit of Rs 102,16,91,560/- u/s 115JB of the Act. However, the assessee could not file its revised return electronically in time due to technical glitches on the department’s website and filed it on 1.4.2008, which was beyond the time limit stipulated u/s 139(5) of the Act. The Assessing Officer held that the revised return was beyond the time limit and accordingly ignored the same. Based on the original return, the Assessing Officer framed the assessment u/s 143(3) of the Act on 16.12.2008 determining total income at Rs Nil under normal provisions of the Act after setting off of brought forward loss of earlier years of Rs 126,45,30,182/- and book profit o

Central Warehousing Corporation vs. Income Tax Officer

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