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TMI Blog2024 (3) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ad indeed set off the brought forward business loss pertaining to Asst Year 2005-06 with the business income of Asst Year 2010-11 which is within the 8 years time limit provided in the statute. Hence the lower authorities grossly erred in not following the provisions of the Act in the correct perspective and had denied the legitimate deduction to the assessee. AO is hereby directed to allow the set off of brought forward business loss pertaining to Asst Year 2005-06 with the business income of the year under consideration. Accordingly, the grounds raised by the assessee on merits are allowed. - SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR US, JUDICIAL MEMBER For the Appellant : Dr. Rakesh Gupta, Adv and Shri Somil Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort. However, this figure of Rs 12,53,378/- was duly mentioned in the relevant column in the Income Tax Return by the assessee for the purpose of set off with the business income. The original assessment was completed u/s 143(3) of the Act on 25.5.2012 determining total income at Rs 1,02,08,940/- after making disallowance of Rs 6,50,660/- u/s 14A of the Act. This assessment was sought to be reopened by the ld. AO on the ground that the assessee had set off the brought forward business loss of Rs 12,53,378/- with the business income of the year the veracity of which needs to be verified. Accordingly, a notice u/s 148 of the Act was issued to the assessee. The assessee sought for furnishing of reasons recorded for reopening the assessment whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness profits in Asst Years 2008-09 and 2009-10 and accordingly the business loss of Asst Year 2005-06 should have been set off with the business income of Asst Years 2008-09 and 2009-10. Since the same was not done by the assessee for the reason of the mistake of the Accountant, the brought forward business loss of Asst Year 2005-06 in the sum of Rs 12,53,378/- would not be eligible to be set off with the business income of Asst Year 2010-11. This action of the ld. AO was upheld by the ld. CIT(A) for the same reasoning. 5. From the above, it is evident that the assessee had indeed had assessed business loss of Rs 12,53,378/- in Asst Year 2005-06. This loss was admittedly not set off with the business income by the assessee in Asst Years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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