TMI Blog2014 (2) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... t be allowed to be set off against the income of the relevant assessment year and after set off if the net result is loss why not the same be allowed to be carried forward as per provisions of the Income Tax Act - If the income of the assessee for the year under consideration is assessed under section 144 of the act, that itself is no ground to disallow the setoff of earlier year losses, which the assessee otherwise entitled to claim as per law - the assessee is entitled to set off of loss of earlier years against the income directed by the CIT(A) to be estimated for the relevant assessment year - the assessee will be further entitled to carry forward if the resulting income will be negative – Decided partly in favour of Assessee. - ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years incurred by the Appellant without appreciating the facts and circumstances of the case. 5. The Appellant, craves, leave to add, amend, alter or delete any of the above grounds of appeal." 2. Since all the grounds of appeal are interconnected, hence the same are taken together for adjudication. The brief facts are that during the course of proceedings the assessee submitted before the Assessing Officer (herein further referred to as AO) that its case may be transferred to Bangalore as its jurisdictional Assessing Office was in Bangalore and that further queries may be sent at the Bangalore office. The assessee further requested withdrawal of the notice u/s.142(1) and failed to furnish the requisite details. Accordingly, the AO re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee meant to challenge the jurisdiction of ITO, Mumbai, then by virtue of provisions of section 124(3)(a) of the Act the jurisdiction of an AO had to be challenged within one month of the receipt of notice u/s. 143(2) of the Act. In assessee's case, notice u/s. 143(2) was issued on 04.08.2009. Thus, the assessee should have filed the request for transfer on or before 20.09.2009. But the assessee claimed to have filed the first letter requesting for transfer on 13.05.2010 with DCIT -8(2), Mumbai. The AO therefore proceeded to make assessment under section 144 as of the Act on the basis of material available on record. He pointed out various discrepancies in the accounts of the assessee and thereafter assessed the total income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustice and assessed the income of the assessee accordingly at Rs.2,35,996/-. Aggrieved from the order of the CIT(A) the assessee is in appeal before us. 4. We have heard the ld. representatives of both the parties and also have gone through the records. 5. The ld. representative of the assessee has not addressed any argument on the ground relating to the issue of rejection of books of accounts by the AO and assessment of income under section 144 of the Act by the AO on the ground of failure of the assessee in cooperating and providing necessary details to the AO in the assessment proceedings. However, he has contested the estimation of income @ 5% of the net profit on the total sales as against loss of Rs.10,93,667/- returned by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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