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2015 (11) TMI 984 - AT - Income TaxRectification of mistake - allowing the brought forward losses of the assessment year 2005-06 - CIT(Appeals) cancelling the order passed under section 154 - Held that:- The exercise of power under section 154 in the present case is totally invalid. As can be seen, the loss of ₹ 92,85,891 was quantified and allowed to be carried forward while processing the return filed by the assessee under section 143(1) of the Act for the assessment year 2005-06. However, the loss and depreciation involved was not verifiable. Therefore, if at all there is a mistake, then, it is in the quantification and carry forward of loss in the assessment year 2005-06 because of the fact that loss could not have been carried forward due to delayed filing of return of income. However, once loss was quantified and allowed to be carried forward in the assessment year 2005-06, we are not able to understand how it can be rectified in the assessment year 2006-07 wherein the brought forward loss has only been set off. Therefore, there being no mistake apparent on record in the assessment order passed for the impugned assessment year, exercise of power under section 154 of the Act is invalid. Accordingly, there being no infirmity in the order of learned Commissioner of Income-tax (Appeals), we uphold the same by dismissing ground raised. - Decided in favour of assessee.
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