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2021 (12) TMI 398 - ITAT MUMBAIRevision u/s 263 to set aside an order passed u/s. 154 - eligibility of the loss from specified business being eligible for being carried forward as such - whether the observations about the eligibility of loss being carried forward does indeed affect the interests of the assessee in any manner? - HELD THAT:- Assessee deserves to succeed for these short reasons alone. In the first place, as learned counsel for the assessee vehemently submits, the issue regarding eligibility for set-off is wholly academic so far as the year of incurring loss in question is concerned. The very exercise of seeking a specific mention, by moving the rectification petition, about the eligibility for carrying forward of loss was thus, in a way, somewhat academic and more as a measure of abundant caution rather than the requirement of law. The rectification order was thus wholly infructuous in the eyes of the law. Once a loss has been disclosed in the income tax return, and such a loss has not been disturbed in the scrutiny assessment proceedings, such a loss is treated to have been accepted, and quantification thereof cannot be disturbed. What the learned PCIT has done is to disturb this quantum of loss, but then that could have been done within two years from the end of the financial year in which the related scrutiny assessment order was passed. Limited scope of “mistake apparent on record” under section 154 and in the light of Hon”ble Supreme Court”;s judgment in the case of ITO Vs Volkart Brothers [1971 (8) TMI 3 - SUPREME COURT] could not have been disturbed in the proceedings under section 154, and what cannot be done under section 154, cannot be done under section 263 r.w.s. 154 either. Whichever way one looks at it, the impugned revision order is vitiated in law. DR”s plea that the quantification of loss in question was never examined at any stage in the scrutiny assessment proceedings, and, therefore, it cannot be allowed to be carried forward, all we can say is that the Assessing Officer could surely have done so in the scrutiny assessment proceedings under section 143(3), but just because he has missed the bus, we cannot bend the law to allow that examination now. The finality of time limits has to be respected and followed - we quash the impugned revision proceedings. The assessee gets the relief accordingly.
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