Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (12) TMI 447 - AT - Income TaxRevision u/s 263 - As per CIT A.O had not deliberated on the provisions of Sec.79 and not conducted any inquiry qua the set-off of the brought forward losses of the previous year against its income for the year under consideration - HELD THAT:- As decided in Amco Power Systems ltd.[2015 (10) TMI 2385 - KARNATAKA HIGH COURT] as the control of the assessee company before them remained with the holding company as the change in the shareholding had not resulted in reduction of its voting power to less than 51%, therefore, the provisions of Sec.79 denying the benefit of carry forward of losses to the assessee company would not come into play. As held by the Hon’ble High Court of Bombay in the case of K. Subramanian & Anr. [1983 (4) TMI 3 - BOMBAY HIGH COURT] the A.O was obligated to take a view which was in favor of the assessee and not against him. Backed by the aforesaid facts involved in the case of the assessee before us read a/w the aforesaid position of law, we are of the considered view that no infirmity arises from the order of the A.O whose view qua the issue in question is in conformity with the judgment of Amco Power Systems ltd.[2015 (10) TMI 2385 - KARNATAKA HIGH COURT] which being a view favourable to the assessee, he was obligated to follow as per the judgment of the Hon’ble jurisdictional High Court in the case of Siemen’s India Ltd. & Anr. [1983 (4) TMI 3 - BOMBAY HIGH COURT]. Thus we are of a strong conviction that as the A.O while framing the assessment had taken a possible and a plausible view with respect to the issue under consideration i.e the entitlement of the assessee company to set-off its brought forward losses of the previous years as against its profits for the year under consideration, therefore, on the said count itself the CIT was divested of his jurisdiction to have revised the assessment order u/s 263 of the Act. We, thus, in terms of our aforesaid deliberations are unable to sustain the order passed by the CIT u/s 263 - Decided in favour of assessee.
|