Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 21 - AT - Income TaxReopening of assessment u/s 147 - assessee has not filed its return of income for AY 2012-13 - HELD THAT:- We notice from the record that assessee is a public sector company and due to internal exigencies, assessee has filed its return of income only on serving of notice u/s 148 and there is no dispute as far as the date of filing of return of income and assessee has filed its return of income belatedly even though assessee has to declare huge loss. It is mandatory on the part of the assessee to file its loss return in order to carry forward loss. With regard to submission of Ld. AR that AO cannot initiate the proceedings u/s 147 of the Act for the reason that assessee has not filed its return of income and that reason alone cannot be proper to initiate proceedings u/s 147 by relying upon the decision in the case of General Electoral Trust vrs. ITO [2016 (8) TMI 959 - BOMBAY HIGH COURT]. As observed in the case of trust that income of the assessee is not determinable whether it has taxable income and as per the provision of section 139 assessee is obligated to file only it has taxable income and AO can collect the information u/s 133(6) - we notice that in the present case, the facts are different and as far as trust is concerned, it is obligated to file return of income only when it has taxable income, whereas in the case of a company, it is obligated to file its return of income whether it has profit earned or not and even on carry forward loss is concerned, assessee has to file its loss return within the limitation period in order to avail the benefit of carry forward loss. Case relied upon by Ld. AR is distinguishable and in our considered view, the proceedings initiated by AO u/s 147 is proper. Accordingly, the additional grounds raised by the assessee are dismissed. There is no dispute that assessee has filed its return of income belatedly and as per the provisions of the Income Tax Act, assessee cannot avail the benefit of carry forward without filing the return of income on time. We further notice that Ld. CIT(A) has already considered that the loss return filed by the assessee includes unabsorbed depreciation and business loss and he restricted the denial of carry forward loss only to the extent of actual business loss. Therefore, assessee does not have a proper case for availing the benefit of carry forward loss by not following the respective provision of filing return within the due date. Accordingly, grounds raised by the assessee are dismissed.
|