Star Paper Mills Limited Vs. PCIT-2, Kolkata

Parties Involved

Facts Summary

The assessment order under sections 143(3), 144C(3), and 144B of the Act was passed on 04.06.2021 by the National Faceless Appeal Centre, Delhi, assessing the total income of Star Paper Mills Limited at ₹16,46,82,464/- under the normal provisions and at ₹62,11,56,146/- under section 115JB of the Act. The Principal Commissioner of Income Tax, Kolkata-2 (PCIT) revised this order under section 263 of the Act, alleging that the assessee had claimed excess depreciation and brought forward losses/depreciation. The assessee contested these claims, arguing that the depreciation was correctly claimed at 50% and the brought forward losses/depreciation were in accordance with previous orders.…

Legal Issues

• 1. Invalid exercise of revisionary jurisdiction under section 263 of the Act regarding excess claim of depreciation.
• 2. Invalid exercise of revisionary jurisdiction under section 263 of the Act regarding excess claim of brought forward unabsorbed losses/depreciation.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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