Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 251 - AT - Income TaxRevision petition u/s. 264 - disallowance of carry forward of loss to subsequent years - non acceptance of return filed by the assessee - HELD THAT:- AO had passed an order dated 31.12.2009 without mentioning the section under which such order is passed by him and also by summarily disallowing the loss and also suggesting some disallowances on without prejudice basis. In the said order, the ld AO had categorically stated that the e-return filed by the assessee is non-est and invalid. AO had also categorically stated that the proceedings initiated by issuing notice u/s 143(2) of the Act were dropped by him. Hence all the disallowances suggested by him in the said order, even on without prejudice basis, will have no legs to stand. Admittedly, this so called assessment order was passed by the ld AO without issuing notice of demand u/s 156 of the Act, which is also a statutory notice and a statutory document to be enclosed along with the assessment order. Hence it could be safely concluded that the ld AO by committing multiple mistakes in a single so called assessment order, had passed a wholly unsustainable and illegal order. CIT while disposing of the 264 petition of the assessee, had clearly directed the ld. AO to treat the return filed by the assessee originally as a valid return - AO while giving effect to the proceedings of the ld. CIT should not have travelled beyond the directions given by the ld. CIT. The ld. AO should have simply treated the return filed by the assessee originally and accepted the same without resorting to make any disallowances thereon. Even if he resorts to make any disallowance, the ld AO ought to have issued fresh notices u/s 143(2) and 142(1) of the Act duly show causing the assessee with regard to those specific issues. Instead of doing so, the ld AO had merely repeated the same disallowances as was proposed by him originally by him, on without prejudice basis, in the illegal and unsustainable so called assessment order passed without mentioning any section. The said disallowances were even made by the ld. AO without giving any show-cause notice to the assessee expressing his mind to make such disallowances. Hence, the said disallowances made without issuing show-cause notice deserves to be deleted on that count also. We direct the ld AO to delete all the disallowances and accept the return filed by the assessee bank in toto and allow the benefit of carry forward of loss to subsequent years. Appeal of the assessee is allowed.
|