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TMI Blog2025 (1) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... equent years and would amount to application of income for subsequent years. Though amendment has been made in Section 11 denying the set off of such deficit by the Finance Act, 2021 w.e.f. 01.04.2022 by inserting explanation 5 to section 11(1) but this is applicable prospectively. The accumulated deficit arising out of expenditure over income for the previous year is allowed to be set off against the surplus of the impugned year. Decided in favour of assessee. - Shri Shamim Yahya, Accountant Member And Shri Vimal Kumar, Judicial Member For the Appellant : Sh. Somil Agarwal, Adv. Sh. Deepesh Garg, Adv. For the Respondent : Shri Amit Katoch, Sr. DR. ORDER PER SHAMIM YAHYA, AM : The Assessee has filed the instant Appeal against the Order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging interest u/s 234A, 234B and 234D of Income Tax Act, 1961. 2. The brief facts of the case are that the assessee had filed its return of income on 19.12.2017 declaring NIL income. Later on, the case of the assessee was selected under scrutiny and statutory notices were issued and served before the assessee. Thereafter, the assessment u/s. 143(3) of the Act was completed on 20.10.2019 at an assessed income of Rs. 1,03,44,990/-. Against the action of the AO, assessee appealed before the Ld. CIT(A), who vide his impugned order 20.01.2023 partly allowed the appeal of the assessee. Aggrieved with the aforesaid action of the Ld. CIT(A), assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... triseva Trust, (2000) 242 ITR 0020 (Madras) Shri Ram Sharnam Sabha vs. ITO, ITA No. 8899/2019 dated 12.04.2022 (Del). Though amendment has been made in Section 11 denying the set off of such deficit by the Finance Act, 2021 w.e.f. 01.04.2022 by inserting explanation 5 to section 11(1) but this is applicable prospectively. PB 1-31 is the computation of income etc. . PB 32-35 are submissions before Ld. CIT(A) together with the details of total deficit. PB 39 is the copy of chart showing deficit of Rs. 5,66,68,630/-. Thus in view of the above, it is respectfully submitted that accumulated deficit arising out of expenditure over income for the previous year may please be allowed to be set off against the surplus of the impugned year. 5. Per con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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