Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 164 - AT - Income TaxRectification u/s 154 - Disallowing set off of brought forward losses/unabsorbed depreciation against the total income declared by the assessee - application u/s. 154 immediately after the assessment order, praying for set off of business losses/unabsorbed depreciation against the total income for the assessment year 2005-2006 - HELD THAT:- In view of section 72(2)(i), 32(2) and in the case of CIT v. Yokogawa India Ltd. [2016 (12) TMI 881 - SUPREME COURT] the business loss and unabsorbed depreciation of AY 2002-03 to AY 2004-05 ought to have been set off against the business income remaining after claiming deduction under section 10A and against the Income from other sources of the subsequent years. The CBDT Circular No. 14 dated 11.04.1955 states that the income tax authorities are required to bring to the notice of the assessee any claim of relief, exemption, deduction etc. to which the assessee is legally entitled and allow the same even though the assessee may not have claimed the said relief, exemption, deduction etc. for any reason. It was further stated that the Officers of the Department must not take advantage of ignorance of an assessee as to his rights. In the light of the above CBDT Circular No. 14 dated 11.04.1955, the fact that the assessee inadvertently did not set off the business losses and unabsorbed depreciation of AY 2002-03 to AY 2004-05 against the remaining business income (after claiming deduction u/s. 10A) and Income from other sources of the subsequent years does not obviate the duty of the assessing officer in rectifying the said mistake and allowing set off for the same. If an assessee makes a mistake in submitting to be assessed on a particular income before the assessing authority, he is not estopped or precluded by law from preferring an appeal and showing to the appellate authority that the income is, in fact, either wholly or partly, not exigible to tax. If such a contention is taken, it is the duty of the appellate authority to examine the matter and determine the proper tax leviable. Hon'ble Karnataka High Court in Wipro Limited v. DCIT [2015 (10) TMI 826 - KARNATAKA HIGH COURT] had held that claims not made in the return of income are also allowable by the assessing officer as placing reliance of the CBDT Circular No. 14 dated 11.04.1955. We are of the view that the matter needs to be considered afresh by the A.O. The A.O. is directed to consider the assessee's claim of set off of unabsorbed losses/depreciation against the declared income for assessment year 2005-2006. The A.O. shall afford an opportunity of hearing to the assessee. - Appeals filed by the assessee are allowed for statistical purposes.
|