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2017 (5) TMI 158 - AT - Income TaxRectification of mistake - brought forward losses and depreciation rejected - Held that:- We are of the opinion, that the F AA was not justified in rejecting the claim made by the assessee. He has also accepted that in the competition of income the assessee has shown income at Rs nil. As per the settled principles of taxation jurisprudence the Department is entitled to collect due taxes only and that due taxes arise from taxable income. In the case under consideration the assessee had inadvertently, in the return of income, disclosed some income that had not accrued/arisen to it. In the circumstances, after-the-fact was brought to the notice of the revenue authorities, there was no justification to levy any taxes. Claim made by the assessee before the FAA should have been allowed after verification. Therefore, in the interest of Justice, we are restoring that the issue to the file of the FAA, who would verify the veracity of the claim made by the assessee. If it is found that claim made by the assessee about brought forward losses and the depreciation was in order considering the earlier years returns of income, the appeal filed by the assessee should be allowed. The assessee is directed to extend full cooperation to the FAA. Effective ground of appeal is allowed in favour of the assessee, in part.
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