TMI Blog2017 (9) TMI 1726X X X X Extracts X X X X X X X X Extracts X X X X ..... quent year is not binding on the assessee in the subsequent actual year of set-off Assessing Officer in the instant year had no jurisdiction to give a finding that the loss of ₹ 7,96,21,402/- cannot be carried forward and set-off against the income of the subsequent year. Therefore, such observations/directions of AO in our view, are bereft of jurisdiction and are accordingly directed to be removed. Our aforesaid decision should not be understood as any reflection on the merit or otherwise of invoking of Sec. 79 of the Act prohibiting carry forward and set-off of loss in certain situations. The application of Sec. 79 shall be open to be considered by the Assessing Officer in the subsequent year while evaluating the claim of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19,50,79,979/- under the normal provisions of the Act, which was subject to a scrutiny assessment. In the assessment finalised u/s 143(3) of the Act, the Assessing Officer accepted the loss as returned, but noted that there was a change in the shareholding of the assessee-company during the year, which attracted the provisions of Sec. 79 of the Act. Therefore, the Assessing Officer directed that the business loss of ₹ 7,96,21,402/- comprised in the total loss was not allowed to be carried forward and set-off in the future years. The said action of the Assessing Officer has been affirmed by the CIT(A), against which assessee is in further appeal before us. 4. Though in the Memo of appeal, assessee has challenged the merits of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court, whether the loss in any year may be carried forward to the following year and set-off against the income of the subsequent year is liable to be determined by the Assessing Officer who deals with the assessment of such subsequent year. The Hon'ble Supreme Court further noted that a decision recorded by the Assessing Officer who computes the loss in a previous year that the loss cannot be set-off against the income of the subsequent year is not binding on the assessee in the subsequent actual year of set-off. Considered in this light, in our view, the Assessing Officer in the instant year had no jurisdiction to give a finding that the loss of ₹ 7,96,21,402/- cannot be carried forward and set-off against the income of the subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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