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2021 (7) TMI 757 - AT - Income TaxAddition on account of construction loss claimed - Matching with Revenue - AO rejected the contention of the assessee i.e. the loss claimed in the year under consideration was offered to tax in the subsequent year when bungalows constructed by the assessee got regularized by the competent authority, on the reasoning that the loss was claimed in the year under consideration which is not permissible under the provisions - HELD THAT:- Admittedly, the construction loss claimed by the assessee in the year under consideration was offered to tax in the subsequent assessment years. This finding of the CIT (A) has not been controverted by the DR at the time of hearing. Thus it can be inferred that, if the amount of loss claimed by the assessee in the year under consideration is disallowed then such disallowance/addition will lead to the double addition which is not desirable under the provisions of law. Assuming, the contention/finding of the AO is correct that impugned loss is not allowable for deduction in the year under consideration, then it is incumbent upon the AO to reduce the amount of income which was offered to tax by the assessee in the subsequent assessment year. If it is not done so, then the assessee will suffer to tax 2 times with respect to the same amount in 2 different assessment years which is not desirable under the provisions of law. Accordingly in the absence of any adverse finding by the AO for the adjustment of the construction loss claimed by the assessee in the year under consideration with the income offered in the subsequent year, we are not convinced with the order of the AO. Accordingly, we do not find any infirmity in the order of the learned CIT (A). Hence, we uphold the same. Thus the ground of appeal of the Revenue is dismissed.
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