2020 (6) TMI 21 - AT - Income Tax

Rectification of mistake u/s 154 - mistake in the intimation issued u/s 143(1) in as much as the long term capital loss carried forward from A.Y. 2010-11 2013-14 was not set off against the long term capital gain for the year under consideration - whether the clerical mistake stated to be committed by the Office Staff of the Tax Advisor of the assessee in not claiming the set off of the said loss against the long term capital gain of the year under consideration while filing the return on-line can be corrected by rectifying the intimation issued u/s 143(1) ? - HELD THAT - As the issue involved in the present case as well as all the material facts relevant thereto are similar to the case of M/s. Shrikant Real Estates (P) Ltd. 2012 (10) TMI 854 - ITAT MUMBAI we respectfully follow the decision of the Coordinate Bench of this Tribunal rendered in the said case and direct the Assessing Officer to rectify the intimation issued under section 143(1) as sought by the assessee thereby allowing the claim of the assessee for set off of long term capital loss carried forward from the earlier years against the long term capital gain of the year under consideration. - Decided in favour of assessee.

Summary

Issues:
Rectification of intimation issued u/s 143(1) for not allowing set off of long term capital loss against capital gain.

Analysis:
The appeal was filed by the assessee against the order of Ld. CIT(A) upholding the AO's decision to reject the application for rectification u/s 154. The assessee claimed a clerical error in not setting off long term capital loss from previous years against the current year's capital gain. The AO rejected the rectification application stating no claim was made in the return of income. The Tribunal considered the case of Shrikant Real Estates (P) Ltd. vs ITO, where a similar issue was decided in favor of the assessee due to clerical errors in e-filing. The Tribunal directed the AO to rectify the intimation u/s 143(1) to allow the set off, following the precedent. The Tribunal found the facts and issues in the present case similar to the cited case, hence allowed the appeal of the assessee, directing the rectification of the intimation to permit the set off of long term capital loss against the capital gain.

This detailed analysis highlights the key legal arguments, precedents, and decision-making process involved in the judgment. The Tribunal's reliance on a previous case with similar circumstances showcases the consistency in legal interpretation and application in tax matters.