9911796707
TMI Blog2014 (4) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... Act is factually incorrect – the business loss was allowed to be carried forward - The assessee has not violated any of the conditions u/s 80 of the Act - The assessee had shown positive income in the returns, but in the assessment, the business loss was determined by the AO – thus, the assessee is entitled for the benefit of carry forward of business loss - Whether loss ultimately determined by the Assessing Officer was liable to be carried forward or not, is a debatable issue – Invocation of section 154 is not available for the AO – thus, the order of the Tribunal is upheld – Decided against Revenue. - ITA No. 683/2007 - - - Dated:- 11-2-2014 - DILIP B. BHOSALE AND B. MANOHAR, JJ. Sri. K.V. Aravind for the Appellant Sri. S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent-assessee filed objections to the notice issued under Section 154 of the Act. The Assessing Authority over-ruling the said objections by its order dated 10-10-2003 held that the assessee is not entitled for carry forward of the loss since the returns has not been filed within the prescribed time limit under Section 139(1) of the Act. Being aggrieved by the order passed by the Assessing Authority, the respondent-assessee preferred an appeal before the First Appellate Authority. The Appellate Authority after considering the matter in detail dismissed the appeal filed by the assessee. Being aggrieved by the order passed by the First Appellate Authority, the assessee preferred an appeal before the Tribunal. 3. The Appellate Tribunal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in invoking Section 154 and withdrawing the benefit of carry forward of business loss. In the instant case, the assessee has not filed the return showing the business loss within the prescribed time limit. Hence, he is not entitled for carry forward of business loss. The reasoning given by the Tribunal is contrary to law and sought for allowing the appeal. 6. On the other hand, Sri. S. Parthasarathi, learned counsel appearing for the respondent-assessee argued in support of the order passed by the Appellate Tribunal and contended that in the return filed on 6-1-1998, the assessee had declared the income of Rs.5,29,270/-. The assessment was concluded under Section 143(3) of the Act and the Assessing Officer declared the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of Rs.5,29,270/- for the relevant assessment year well in time. During the course, of assessment, it was found that there is business loss. Accordingly, the said business loss was allowed to be carried forward. The assessee has not violated any of the conditions under Section 80 of the Act. The assessee had shown positive income in the returns, but in the assessment, the business loss was determined by the Assessing Officer. This being the factual position, in our opinion, the assessee is entitled for the benefit of carry forward of business loss. Whether loss ultimately determined by the Assessing Officer was liable to be carried forward or not, is a debatable issue. Invoking the provision of Section 154 is not available for the As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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