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2024 (3) TMI 92 - AT - Income TaxSet off of brought forward business loss - mistakes in previous years for not claiming benefit of set-off - eligibility for set off of the business loss with future business income - 8 years time limit provided in the statute - HELD THAT:- As per the provisions of Section 72 the unadjusted business loss of a particular year would be eligible to be carried forward to 8 subsequent assessment years and the same would be eligible for set off against the business income of 8 subsequent assessment years. Hence as per section 72 of the Act, the assessee had indeed set off the brought forward business loss pertaining to Asst Year 2005-06 with the business income of Asst Year 2010-11 which is within the 8 years time limit provided in the statute. Hence the lower authorities grossly erred in not following the provisions of the Act in the correct perspective and had denied the legitimate deduction to the assessee. AO is hereby directed to allow the set off of brought forward business loss pertaining to Asst Year 2005-06 with the business income of the year under consideration. Accordingly, the grounds raised by the assessee on merits are allowed.
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