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TMI Blog2012 (5) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... AO rejected the set off as it was not claimed in the original return of income and could not be allowed in the return filed in response to notice u/s.153A – Held that:- Once loss is determined in the return file u/s.139(3), the assessee becomes eligible for set off against the income of the subsequent years irrespective of the fact whether the returns of such later years are filed u/s.139(1) or not - Sec. 80 read with sec. 139(3) requires the submission of return for loss before the due date - the return filed in response to notice u/s.153A is treated as the return filed u/s.139 – in favour of assessee. Disallowance of set off of brought forward business loss for assessment year 2001-02 – Held that:- Brought forward business loss has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he remaining amount of Rs.2,93,100/- came as loan taken from Standard Chartered Bank for the purchase of the car. Not satisfied, the AO made addition of Rs.5,55,284/-towards the purchase price of the car. The ld. CIT(A) allowed relief to the extent of loan taken from the Standard Chartered Bank. The assessee is aggrieved against the sustenance of balance addition. 3. After considering the rival submissions and perusing the relevant material on record, it is observed that the assessee did not file his return of income for the current year within the time allowed u/s.139(1). It was only pursuant to search action taken on 05-01-2007 that the return for the year was filed in response to notice u/s.153A. The assessee purchased car for Rs.5.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not claimed in the original return of income, could not be allowed in the return filed in response to notice u/s.153A. Before the ld. first appellate authority also, the assessee contended that the loss was incurred by him in assessment year 2001-02 and the same ought to have been allowed. The ld. CIT(A) echoed the assessment order by relying on a judgment in E.K. Lingamurthy and Anr. vs. Settlement Commission (2007) 293 ITR 76 (Mad.). 5. We have heard the rival submissions and perused the relevant material on record. It is observed from the copy of return filed by the assessee for assessment year 2001-02 on 31-10-2001 that loss of Rs.27,26,360/- under the head "Profits and gains of business or profession" was declared. The said retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 139". From the prescription of sec. 153A, it is apparent that the return filed in response to notice u/s.153A is treated as the return filed u/s.139. If that is the position, we are unable to appreciate as to how the loss determined for the immediately preceding year will not be available to the assessee for the set off against the current year's income declared in the return filed u/s.153A. 7. In so far as the reliance of the ld. CIT(A) on the case of E.K. Lingamurthy (supra) is concerned, we find that the same is misplaced because this judgment has been rendered in the context of block assessment under Chapter XIVB. Section 158BA requires the assessment of "undisclosed income" as a result of search. Section 158BB(4) clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant material on record. The sum and substance of the submissions advanced by both the sides is the reiteration of the arguments made for assessment year 2002-03 above. In the said case for assessment year 2002-03, we have held that the brought forward loss determined for assessment year 2001-02 has to be allowed against the current year's income. Presently, we are dealing with assessment year 2007- 08. The assessee is claiming that the brought forward business loss of Rs.14.07 lakhs be allowed against the current year's income. However, no details have been furnished about the income earned and returned for assessment years 2003-04 upto assessment year 2006-07. The loss determined in assessment year 2001-02 is eligible for reducing the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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