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TMI Blog2012 (10) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... in upholding the addition of unsecured loan of ₹ 81,646/- from M/s. Sangeeta Jaiswal as the income of assessee without appreciating the facts and circumstances of the case and applicable laws. 3. The CIT (A) has erred in upholding the addition of ₹ 44,242/- payable to Raksha Holding Pvt. Ltd as the income of assessee without appreciating the facts and circumstances of the case and applicable laws". 2. We have heard the learned Counsel and the learned DR in detail and paper book placed on record. 3. Ground No.1 is on the issue of set off of brought forward loss of ₹ 78,781/-. Assessee claimed set off of the above amount in the return of income and AO on the reason that such loss was disallowed in the case of assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 2002-03 in which the assessee has claimed set off of the brought forward business loss against the income for the current year. In our considered opinion, the authorities below were not justified in not granting the set off of the brought forward business loss for the reason that the requirement to file return within the time prescribed u/s.139(1) is for carrying forward the loss. 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. There is no such requirement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined in the block assessment under this Chapter but may be carried forward for being set off in the regular assessment. The position is quite different in the case of assessment u/s.153A. Under the substituted mode of assessment pursuant to search, the requirement is to assess or re-assess the "total income" in respect of each assessment year falling within such six assessment years as contrary to the determination of "undisclosed income" u/s.158BC for the block period. There is no provision analogous to sec. 158BB(4) in section 153A etc. 8. In view of the foregoing reasons, we are satisfied that assessee is entitled to set off of the brought forward business loss against the income of the current year as per law. As the composition of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 2000 and was carried forward in the ledger from 1.4.1999 to 31.3.2008 as an unsecured loan and confirmation was filed in assessment year 2000-01 which has been accepted by the then AO in assessment year 2000-01. With reference to Raksha Holding Pvt. Ltd, the liability is outstanding since 31.03.2001 and the liability had not ceased. It was also informed that AO accepted the liability in assessment year 2007-08 and the facts have not been changed. The learned DR however, relied on the fact that assessee has not furnished any confirmation when inquiry was made. 9. We have considered the issue. As seen from the order of AO, AO without specifying under what section he is bringing to tax added the total amount of ₹ 1,25,888/- to the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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