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2016 (11) TMI 389 - ITAT MUMBAICarry forward of business loss denied - rectification of mistake - Held that:- in the case on hand, the assessee admittedly, inadvertently, did not claim set off of business losses against certain heads of income in the return of income. While processing the assessee’s return of income for A.Y. 2008-09 under section 143(1) of the Act, the AO after accepting/ determining the business loss of the assessee at ₹ 5,04,26,202/-, was duty bound in accordance with law as laid down in the provisions of the Act to have allowed set off of the business loss to the extent permissible against other heads of income and carry forward of the eligible balance if any. The assessee is entitled to be allowed set off of business loss as determined by the AO in the order of assessment for A.Y. 2008-09 dated 10.12.2009, against his other eligible heads of income in accordance with law. In our view, failure on the part of the AO to apply these provisions of the Act in respect of set off of determined business losses, while passing the order of assessment, constitutes a mistake apparent from the record. We, accordingly, direct the AO to rectify the order of assessment for A.Y. 2008-09 dated 10.12.2009 by allowing the assessee set off of the business losses of ₹ 5,04,26,202/- against other eligible heads of income in accordance with the law. - Decided in favour of assessee
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