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2015 (11) TMI 2 - AT - Income TaxRevision u/s 263 - AO allowed brought forward business loss and unabsorbed depreciation - Held that:- On the first issue, we find that as per the assessment order for assessment year 2008-09 dated 14/07/2011 available on record, the assessed income is positive income of ₹ 1777.24 lac. The present year is the very next year after assessment year 2008-09 and when there is positive taxable income in assessment year 2008-09, there cannot be any brought forward business loss or unabsorbed depreciation for set off in assessment year 2009-10 until and unless the addition made in assessment year 2008-09 is deleted by appellate authorities resulting into loss in that ear and such deletion of the addition in that year is accepted by the Department. The assessment order in the present year is dated 21/11/2011, which is after less than 11 months of the order passed by the Assessing Officer in assessment year 2008-09 and nothing has been brought on record to show that the positive income assessed by the Assessing Officer in assessment year 2008-09 was converted into loss in turn resulting into availability of any brought forward business loss or unabsorbed depreciation in the present year. Hence, the assessment order is clearly erroneous as well as prejudicial to the interest of Revenue on this issue because the Assessing Officer has allowed brought forward business loss and unabsorbed depreciation. Loss on investment - we find that although enquiry was raised by the Assessing Officer in respect of loss on investment but as per reply furnished by the assessee, it comes out that such loss is in respect of sale of investment and therefore the Assessing Officer was required to make enquiry as to whether such loss is eligible for set off against business income. Hence, on this issue, there is lack of enquiry as well as lack of application of mind by the Assessing Officer resulting into assessment order being erroneous as well as prejudicial to the interest of Revenue. Subsidy reserve fund - there is no enquiry by the Assessing Officer and therefore, there is lack of enquiry by the Assessing Officer resulting into assessment order being erroneous as well as prejudicial to the interest of Revenue. Amortization of Government securities - although there was enquiry by the Assessing Officer but no detail was furnished by the assessee before the Assessing Officer and hence, the Assessing Officer should have applied his mind to decide as to whether this claim of the assessee regarding amortization of Government securities at ₹ 99,32,984/- is allowable or not but there is no such mention in the assessment order passed by the Assessing Officer and therefore, on this issue, there is no application of mind by the Assessing Officer and hence, the assessment order is erroneous as well as prejudicial to the interest of Revenue on this issue. Thus the assessment order is erroneous as well as prejudicial to the interest of Revenue and therefore, no interference is called for in the order of learned CIT. - Decided against assessee.
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