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2023 (7) TMI 1090 - ITAT INDOREPenalty u/s 270A - though the assessee has furnished loss under “Income from Other Sources” (which includes the disallowed depreciation as well) but was ultimately ignored by neither claiming set off in current AY 2018-19 nor carry forward/brought-forward benefit in next AY 2019-20 - HELD THAT:- We find that the loss computed by an assessee under the head “Income from other sources” can be set off against any other income in current year u/s 70 and 71 but in the present case, the assessee was not having any other income, hence unable to claim set off. Further, the carry-forward of loss of “Income from other sources” head to next year is permitted u/s 74A and that section permits carry-forward of a particular type of loss i.e. loss from owning and maintaining race horses. Since the assessee’s loss had not arisen from such a source, there was no enabling provision to allow carry forward benefit. Therefore, the software utility itself did not allow set off in current year or even carry forward. Be that as it may, irrespective of whether it was the assessee who voluntarily did not claim any set off or carry forward of loss of “Income from Other Sources” or it was automatic in the situation by virtue of law, the fact remains that the Total Income as per return was Rs. Nil and the AO has also assessed Total Income at Rs. Nil. Coupled with this, it is also a fact that the assessee is not having any benefit of set off or carry forward of loss. When it is so, we agree with the submission of Ld. AR that the situation does not fall within any of the clauses of section 270A(2), not even under clause (g) of section 270A(2). Being so, the present case does not attract penalty provision in terms of section 270A(2) read with section 270A(8). We are therefore inclined to delete the penalty imposed upon assessee and we do so. The assessee succeeds in this appeal.
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