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TMI Blog2021 (8) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... is a Company. The return of income filed by it for the year under consideration was selected for complete scrutiny and the assessment was completed by the Assessing Officer under section 143(3) of the Act vide an order dated 28.12.2018. The records of the said assessment subsequently came to be examined by the ld. Principal CIT and on such examination he found the following error in the order passed by the Assessing Officer under section 143(3):- "It was noticed that the assessee claimed carry forward of long-term capital loss of Rs. 4,41,60,604/- in his return of income. During assessment the long-term capital loss (Non-STT paid) of Rs. 3,22,30,814/- was disallowed by the Assessing Officer due to such loss had been arisen from listed se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion deserves to be set aside and/or dropped. 3. Even otherwise, and on the merits it is submitted that your allegation that the AO inspite of disallowing the long term capital loss to the extent of Rs. 3,22,30,814/- erroneously allowed the whole long term capital loss of Rs. 4,14,60,604/- is also factually incorrect. On perusal of Pages 11 & 12 of the assessment order, it shall be noted that the A 0 had denied the carry forward of long term capital loss to the extent of Rs. 3,22,30,814/- and had allowed the carry forward of short term capital loss of Rs. 2,82,23,130/-. Reference is invited to SI. No. 18 of the ITNS annexed to the assessment order [Annexure2], wherein the AO has specified and allowed only the carry forward of short term c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er due to such loss had been arisen from listed securities. From ITBA CFL schedule it is seen that the whole long term capital loss i.e. Rs. 4,41,60,6041- as claimed by the assessee was allowed to be carried forward for the future years instead of only Rs. 1,19,29,7901- (Rs. 4,41,60,604 - Rs. 3,22,30,814). The A.O. has passed the assessment order without making enquiries or verification which should have been made in the instant case. Clause (a) and (b) of Explanation-2 to Section 263(1) is attracted in this case. Accordingly, it is held that the assessment order is erroneous in so far as it is prejudicial to the interest of revenue". 6. For the reasons given above and by relying on the various judicial pronouncements referred to in his i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the Assessing Officer. He also contended that even the disallowance made by the Assessing Officer on account of the assessee's claim for long-term capital loss to the extent of Rs. 3,22,30,814/- has been challenged by the assessee-company in the appeal filed before the ld. CIT(Appeals). In this regard, he drew our attention to the copy of relevant Form No. 35 placed at page no.23 to 25 of the paper book. He contended that the long-term capital loss of Rs. 4,41,60,604/- as claimed by the assessee thus was not allowed to be carried forward by the Assessing Officer vide his order dated 28.12.2018 passed under section 143(3) and there was no error in the said order as alleged by the ld. Principal CIT in his impugned order calling for any r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of the assessment order passed by the Assessing Officer under section 143(3) read with the computation sheet annexed thereto that even though the claim of the assessee-company for long-term capital loss of Rs. 4,41,60,604/- was allowed by the Assessing Officer only to the extent of Rs. 1,19,29,790/-, no amount of long-term capital loss was actually allowed by the Assessing Officer to be carried forward in the computation sheet. He has also invited our attention to the copy of application filed by the assessee under section 154 on 31.01.2019 placed at page no. 33 & 34 of the paper book to show that this mistake committed by the Assessing officer was pointed out by the assessee-company seeking rectification of the same. He has al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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