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2022 (11) TMI 1033 - AT - Income TaxRevision u/s 263 by CIT - computation of total income by considering loss declared by the assessee - HELD THAT:- We are of the considered view that the assessment order passed by the AO neither erroneous nor prejudicial to the interest of the Revenue in so far as the first issue of computation of total income by considering loss declared by the assessee - Although, the AO has taken loss admitted as per original return of income filed by the assessee on 03.11.2017 in the assessment order, but in the computation sheet, the AO has adopted loss declared by the assessee in revised return of income filed on 30.03.2018, which is evident from the fact that the AO has considered current year loss in Column-11 of computation sheet as per revised return filed by the assessee. Therefore, assumption of jurisdiction by the ld. PCIT on this issue is fails. Disallowance of 'prior period expenses' - Although, the assessee has claimed deduction for 'prior period expenses' in the P & L A/c, but did not made any disallowance in statement of total income, even though, said expenses is inadmissible under the law. The AO has failed to consider the disallowance of 'prior period expenses' while completing the assessment order u/s. 143(3) of the Act. Although, the Ld. Counsel for the assessee submitted that the AO has verified the issue by way of specific notice and the assessee has filed its reply, but on perusal of details filed by the assessee, we could not made out any evidence of the assessee having explained the issue of 'prior period expenses' before the AO. Therefore, assessment order passed by the AO on the issue of 'prior period expenses' is definitely erroneous and prejudicial to the interest of the Revenue and thus, we are of the considered view that the ld. PCIT has rightly assumed jurisdiction u/s. 263. Appeal filed by the assessee is partly allowed.
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