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TMI Blog2014 (2) TMI 1236X X X X Extracts X X X X X X X X Extracts X X X X ..... of this misconception without considering or examining the said claim on merit being the claim for regular business expenses of post survey period against regular business income. Allowability of set off of the brought forward business losses and unabsorbed depreciation of the earlier years - Held that:- The present assessee has moved an application u/s 154 before the AO for considering the said claim, which is not disputed by the Revenue, we, following the aforementioned decision of the earlier years being assessment years 2005-06 and 2006-07, direct the AO to dispose of the application filed by the assessee u/s 154 expeditiously without any further delay - ITA No. 573/Mum/2011 - - - Dated:- 26-2-2014 - SHRI RAJENDRA, ACCOUNTANT MEM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany had declared a business profit of ₹ 30 lakhs for the assessment year under consideration. The assessee while filing the return, declared a total income of ₹ 23,47,928/- which included the additional income declared during the survey action. However, the claim of the assessee was that the business profit came to ₹ 28,66,456/- due to the claim of post survey expenses, which were not taken into account while estimating income for advance tax. In the assessment framed, the AO made an addition of ₹ 1,33,544/- on the basis of income declared as per recorded statement of Mr. Kishor Patel in survey action. In addition, the AO further did not allow set off of business loss and unabsorbed depreciation as claimed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel of the assessee has also invited out attention to the statement placed at page no. 99 of his paper-book giving the details of expenses incurred prior to survey and expenses incurred after survey. A perusal of the said details shows that the impugned expenses of ₹ 8,17,7462/- comprised of expenses incurred during the post survey period under various routine heads including the major amount of interest on unsecured loans for which provision of ₹ 16,00,000/- was made by the assessee on estimated basis while computing profit for the purpose of advance tax on as 15.03.2007. A copy of Profit Loss Account of the assessee for the year under consideration is placed at page no. 72 of the paper-book which shows that the income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. In the present case, the facts involved are similar to the facts involved in the case of group concern as aforementioned which is evident from the relevant portion of the said order of the Tribunal and the position is not disputed by the Ld.DR also. Therefore, following the aforementioned order of the Tribunal, we set aside the impugned order of the Ld.CIT(A) on this issue and restore the mater to the file of the AO with a similar direction given by the Tribunal in the case of Shrreshay Engg. Pvt. Ltd. and thereby allow the claim of the assessee for the impugned expenses as regular business expenses on merit after necessary verification. Accordingly, Ground no. 2 is allowed for statistical purpose. 6. On the issue raised in Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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