Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 551 - ITAT MUMBAIPenalty u/s. 271(1)(c) - Onus on assessee to furnish a reasonable explanation - CIT upheld penalty - Held that:- assessee did not revise the statement of brought forward (or carry forward) loss/es even after the receipt of the appellate order for A.Y. 1995-96 on 25.01.2002, accepting its claim for the set-off of loss to this extent. The same led to a corresponding difference in the brought forward loss for A.Y. 1996-97. To this extent the assessee has clearly preferred a double claim, i.e., firstly against the income for AY 1995-96 and then again for the current year. Its argument of the A.O. having disallowed the claim subject to verification is to no effect inasmuch as the difference in loss, as claimed and allowed, is finally only for this difference, i.e., which stands wrongly claimed. If the assessee considered that its claim for set off of business loss against LTCG, made for AY 1995-96, may be disallowed in appeal, so that he chose to keep alive its claim for set off of the said loss against income for the current year, the only manner he could do so was by way of a note in the return o income for the current year, and not by actually claiming a set off. The same makes his stand, rather than clarificatory, contradictory, inasmuch as the assessee did not withdraw its claim for the preceding year. In fact, the return for the current year stands filed on 22/4/2004, i.e., after having received the order allowing its claim for set off of business loss against income (LTCG) for AY 1995-96, so that these considerations are only hypothetical and of no relevance. This is as the loss no longer survived for set off, having been already adjusted, rendering the claim for its adjustment (of business loss) to that extent (for this year) as without basis. The assessee thus has no explanation, much less a valid one, for the excess of Rs. 27.01 lakhs, except want of due diligence. In fact, the audit report contains a specific column for furnishing information on brought forward claims for losses and unabsorbed depreciation, and which should have also infused a sense of responsibility in preparing and filing the return, while it is apparent that the figure of loss(es) has been mechanically adopted. Rather, as apparent, the record was not updated for three consecutive years, i.e., A.Y. 2002-03 to 2004-05, and despite the same having a tax impact for the current year. The assessee’s case is sans any explanation, and levy of penalty on this sum stands rightly confirmed by the ld. CIT(A) - Decided partly in favour of assessee.
|