2019 (3) TMI 1164 - AT - Income Tax

Rectification of mistake u/s 154 - disallowance of brought forward losses as well as TDS credit - Return u/s 134(1) as processed u/s 143(1) - HELD THAT - It emerges during the course of hearing that neither the Assessing Officer nor the CIT(A) has adjudicated assessee s grievance on merits in section 154 rectification or regular appellate proceedings as they have gone by technical objections regarding non-maintainability of the former and that of limitation in latter grievance. Therefore deem it appropriate to restore the instant issue of brought forward from 2008-09 and TDS credit to the Assessing Officer for necessary adjudication on merits after affording three effective opportunities of hearing to the taxpayer who shall be at liberty to file on record all necessary evidence. - Assessee s appeals are allowed for statistical purposes

Summary

Issues:
Assessment year 2011-12 - Correctness of disallowance of brought forward loss and TDS credit under sections 143(1) and 154 of the Income Tax Act, 1961.

Analysis:
The appeals arose from separate orders of the CIT(A)-9, Kolkata, concerning proceedings under sections 143(1) and 154 of the Income Tax Act, 1961. The assessee challenged the correctness of the disallowance of brought forward loss and TDS credit. The assessee's return stated commission income, brought forward losses, and TDS claimed. The assessed income was determined without allowing the set off of brought forward losses/TDS credits. The assessee filed rectification and appeals, which were rejected. The appeals raised the same issue of disallowance of brought forward losses and TDS credit.

During the hearing, it was noted that neither the Assessing Officer nor the CIT(A) had adjudicated on the merits of the assessee's grievance. The objections raised were technical, focusing on non-maintainability and limitation. The issue of brought forward losses and TDS credit was restored to the Assessing Officer for necessary adjudication on merits. The taxpayer was to be given three opportunities for a hearing and could submit all necessary evidence. The appeals were allowed for statistical purposes based on the above terms.

In conclusion, the judgment addressed the challenges regarding the correctness of the disallowance of brought forward losses and TDS credit for the assessment year 2011-12 under sections 143(1) and 154 of the Income Tax Act, 1961. The decision emphasized the need for a proper adjudication on the merits of the issue, providing the taxpayer with opportunities for a fair hearing and submission of evidence.