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2011 (1) TMI 1047 - ITAT, BANGALOREDeduction u/s. 80IA - Search and seizure - 153A assessment - whether the exercise of notionally carried forward and set off of depreciation and loss of the eligible business relating to the earlier assessment years is called for when the depreciation and loss of those assessment years have already been allowed to be set off against other income of those assessment years? - Held that:- The eligible business were the only source of income, during the previous year relevant to initial assessment year and every subsequent assessment years. When the assessee exercises the option, the only losses of the years beginning from initial assessment year alone are to be brought forward and no losses of earlier years which were already set off against the income of the assessee. Looking forward to a period of ten years from the initial assessment is contemplated. It does not allow the Revenue to look backward and find out if there is any loss of earlier years and bring forward notionally even though the same were set off against other income of the assessee and the set off against the current income of the eligible business. Once the set off is taken place in earlier year against the other income of the assessee, the Revenue cannot rework the set off amount and bring it notionally. Fiction created in sub-section does not contemplates to bring set off amount notionally. Fiction is created only for the limited purpose and the same cannot be extended beyond the purpose for which it is created. - Decided in favor of the assessee. Thus following the judgment of Velayudhaswamy Spinning Mills P. Ltd. v. ACIT [2010 (3) TMI 860 - Madras High Court] the contention of the assessee accepted and direct the assessing authority to grant deduction to the assessee u/s. 80IA for the quantum claimed by the assessee without diluting the same by the notional deduction of earlier loss and depreciation. In favour of assessee. Cash seized in the course of search - Held that:- As assessee has not explained anywhere the source of this much amount as discernible from the books of account or any other documents - Decided against the assessee
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