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2012 (5) TMI 462 - AT - Income TaxConfirmation of addition of Rs.2,62,184/- paid in cash out of total disallowance of Rs.5,55,284/- made for purchase of car – assessee purchased car for Rs.5.55 lakhs. Loan of Rs.2.93 lakhs was arranged from Standard Chartered Bank and the remaining amount of Rs.2.62 was claimed to have been contributed out of own funds - Held that:- The explanation given for the cash payment is devoid of any merit as the capital account of the assessee for the year in question does not show the withdrawal for the purchase of car - car is not appearing on the asset side of the balance sheet of the assessee – against assessee. Disallowance of set off of brought forward business loss - AO rejected the set off as it was not claimed in the original return of income and could not be allowed in the return filed in response to notice u/s.153A – Held that:- Once loss is determined in the return file u/s.139(3), the assessee becomes eligible for set off against the income of the subsequent years irrespective of the fact whether the returns of such later years are filed u/s.139(1) or not - Sec. 80 read with sec. 139(3) requires the submission of return for loss before the due date - the return filed in response to notice u/s.153A is treated as the return filed u/s.139 – in favour of assessee. Disallowance of set off of brought forward business loss for assessment year 2001-02 – Held that:- Brought forward business loss has to be mandatorily set off against the income of the subsequent year, whether or not it is below the taxable limit - the necessary details about the income for assessment years 2003-04 to 2006-07 are not available on record the impugned order is set aside and restore the matter to the file of AO for deciding afresh.
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