Sanmar Speciality Chemicals Ltd. v. ITO (2018) 256 Taxman 46 / 168 DTR 342 / 304 CTR 319(Mad)(HC)

S.254(1):Appellate Tribunal- Tribunal has no power of enhancement- Tribunal cannot take back benefits granted to assessee by Assessing Officer . Therefore, direction of Tribunal to Assessing Officer to determine depreciation or business loss of each year and carry forward lower of two for adjustment under section 115JA, which would result in enhancement of assessment, was not justified. [ S.115JA]

Allowing the appeal of the assessee the Court held that ; Tribunal has no power of enhancement- Tribunal cannot take back benefits granted to assessee by Assessing Officer . Therefore, direction of Tribunal to Assessing Officer to determine depreciation or business loss of each year and carry forward lower of two for adjustment under section 115JA, which would result in enhancement of assessment, was not justified. Followed Mcorp Gobal (P) Ltd v.CIT( 2009) 309 ITR 434 (SC) , Hukumchand Mills Ltd v. CIT ( 1967) 63 ITR 232 (SC) ( AY.1999-2000)