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2014 (7) TMI 598 - AT - Income TaxRevised return of loss/unabsorbed depreciation – Held that:- The provisions of S.139(5) make it clear that a return can be revised only if such return is furnished u/s 139(1) or in pursuance of a notice u/s 142(1), and the omission warranting the filing of the revised return must be bona fide inadvertence or mistake on the part of the assessee, and such revised return should be filed within one year from the end of the assessment year or before completion of the assessment - the assessee has filed the original return u/s 139(1) and the revised return was filed within one year from the end of the relevant assessment year - the claim of the assessee for set off of unabsorbed depreciation of AY 2007- 08 made in the revised return, omission to make claim in the original return appears to be a bona fide mistake on the part of the assessee, more so, since no material to the contrary has been brought on record by the AO - even if the assessee has not filed revised return, AO is bound to allow carried forward loss or depreciation as per the record - CIT(A) was right in directing the AO to accept the revised return and to allow set off of unabsorbed depreciation of AY 2007-08, after due verification – thus, there was no infirmity in the order of the CIT(A) – Decided against Revenue. Disallowance of compensation for crop loss – Held that:- There were negotiations with the farmers for the amount of compensation to be paid to continue the running of the factory by the assessee, the payment was made on 28.2.2008 - the liability to pay the compensation has crystalised only during the period relevant to the year even though the liability related to the earlier year as well - CIT(A) was justified in directing the AO to allow the entire amount of compensation paid in the year – thus, the order of the CIT(A) is upheld – Decided against Revenue.
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