9911796707
TMI Blog2015 (9) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... n of delay. It has been stated therein that the impugned order of the CIT(A) was received by the assessee on 14.11.2013 and in normal course appeal ought to have been filed before the Tribunal on or before 13.1.2014. However, the appeal was filed only on 14.3.2014 resulting in a delay of 62 days in filing the appeal. It has been further stated that the assessee is managed and operated by Department of Cooperative Societies, Government of Karnataka, since 2004. Further to the directives of Govt., election was to be conducted to elect Governing Body of the Bank in Nov. 2014. There were controversies in the election results and cases were filed in the High Court of Karnataka by various factions challenging the election. The CEO of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Rs.16,22,41,706 Less: Income set off against brought forward losses for the previous year Rs.16,22,41,706 Tax thereon NIL" 6. The AO, thereafter, issued notice u/s. 154 of the Act dated 5.1.2010. According to the show cause notice u/s. 154, the AO was of the view that carry forward loss relating to A.Y. 2003-04 & 2004-05 ought not to have been allowed as the assessee had filed the return of income for those years beyond the time contemplated u/s. 139(1) of the Act. U/s. 139(3) of the Act, any person who has sustained a loss in the previous year under the head 'profit and gains of business or profession' and claims for the loss or any part thereof to be carried forward u/s. 72(1) & (3) or 74A(3), then he has to file a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch happened to be a Sunday. The due date therefore automatically becomes 1.11.2004. The assessee pointed out that in the State of Karnataka, 1st November of every calendar year is a public holiday on account of Karnataka Rajyotsava Day. All State Govt. office, Banks are closed on this day. Assessee being a co-operative bank was also closed on 1.11.2004 being a public holiday. Assessee was under bonafide belief that Income Tax Department is closed on 1st November. The assessee submitted that time laid down in section 139(1) is not mandatory, but directory in nature. The AO, however, did not accept the claim of assessee and he passed an order u/s. 154 of the Act withdrawing set off of loss for A.Y. 2004-05, which resulted in a taxable total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s re-established, reconstructed or revived by the assessee, so much of the loss as is attributable to such business shall be carried forward to the assessment year relevant to the previous year in which the business is so re-established, reconstructed or revived, and - (a) it shall be set off against the profits and gains, if any, of that business or any other business carried on by him and assessable for that assessment year; and (b) if the loss cannot be wholly so set off, the amount of loss not so set off shall, in case the business so re-established, reconstructed or revived continues to be carried on by the assessee, be carried forward to the following assessment year and so on for seven assessment years immediately succeeding." 13. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with aggregation of income and setoff of carry forward loss. A reading of the provisions of section 80 would show that for a loss to be capable of set off in a subsequent assessment year, the return for that year ought to have been filed in accordance with the provisions of section 139(3) of the Act i.e., on or before the due date for filing return of income. In fact, the said condition is also necessary for carry forward of loss for set off in future years. Admittedly, in the case of assessee, the return of income was not filed within the due date and therefore the loss for A.Y. 2004-05 has not been determined in accordance with the provisions of sub-section (3) of 139 for A.Y. 2004-05. Such a loss cannot be therefore set off against the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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