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2019 (6) TMI 657 - AT - Income TaxBenefit of set off of brought forward business loss - application u/s. 154 - Whether the business loss arrived at by AO while giving effect to the order of Tribunal can be carried forward and benefit of set off against the business income in the subsequent assessment years can be allowed to assessee in the absence of such claim in the return of income? - HELD THAT:- Where as a consequence to the order of Appellate Authority, the assessee has received relief which has the cascading effect on subsequent assessment years, the Assessing Officer is duty bound to give effect to the said order in later affected assessment. We do not find merit in the observations of CIT(A) that in the absence of claim of set off of brought forward business loss in the return of income the same cannot be allowed to the assessee. The CIT(A) while making such observations has failed to consider the fact that the assessee in its return of income had declared Nil income, the business loss determined by the Assessing Officer was consequent to the order passed while giving effect to the order of Tribunal. Since the assessee has raised the claim before appellate authority, the same should have been considered by CIT(A) instead of rejecting the same at threshold. The Hon'ble Bombay High Court in the case of In the case of CIT Vs. Pruthvi Brokers & Shareholders P. Ltd. [2012 (7) TMI 158 - BOMBAY HIGH COURT] has held the assessee is entitled to raise additional grounds not merely in terms of legal submissions but also additional claims to wit claims not made in the return filed by it. We hold that the assessee is eligible for claiming the benefit of set off of brought forward business loss in the impugned assessment years. - Decided in favour of assessee.
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