TMI Blog2019 (6) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... effect to the order of Tribunal. Since the assessee has raised the claim before appellate authority, the same should have been considered by CIT(A) instead of rejecting the same at threshold. The Hon'ble Bombay High Court in the case of In the case of CIT Vs. Pruthvi Brokers Shareholders P. Ltd. [ 2012 (7) TMI 158 - BOMBAY HIGH COURT] has held the assessee is entitled to raise additional grounds not merely in terms of legal submissions but also additional claims to wit claims not made in the return filed by it. We hold that the assessee is eligible for claiming the benefit of set off of brought forward business loss in the impugned assessment years. - Decided in favour of assessee. - ITA Nos. 2396 to 2399/PUN/2017 - - - Dated:- 3-6-2019 - Shri D. Karunakara Rao, AM And Shri Vikas Awasthy, JM For the Assessee : Shri R.G. Nahar For the Revenue : Shri Ashok Babu ORDER PER VIKAS AWASTHY, JM : These four appeals by the assessee for the assessment years 2003-04, 2004-05, 2005-06 and 2006-07 are directed against the order of Commissioner of Income Tax (Appeals)-7, Pune dated 10-08-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed to be carried forward. 2.2 Thereafter, the Commissioner of Income Tax invoked the provisions of section 263 of the Act and vide order dated 26-03-2012 cancelled the assessment order holding it to be erroneous and prejudicial to the interest of revenue. Aggrieved against the revision order, the assessee filed appeal before the Tribunal in ITA No. 1140/PUN/2012. The Tribunal vide order dated 25-08-2014 set aside the order of Commissioner of Income Tax passed u/s. 263 of the Act. The Assessing Officer in proceedings to give effect to the order of Tribunal, vide order dated 11-11-2014 for assessment year 2002-03 restored the business losses of the assessee at ₹ 13,00,25,239/-. Thus, in effect the assessment order dated 14-12-2009 passed u/s. 143(3) r.w.s. 254 was restored. 2.3 Thereafter, the assessee filed application u/s. 154 of the Act for the assessment years 2003-04 to 2006-07 to allow the benefit of carry forward of business loss determined by Assessing Officer in consequent to the directions of Tribunal in assessment year 2002-03. The said application of assessee was rejected by the Assessing Officer. Aggrieved against the order dated 20- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessable for that assessment year under any other head. In section 72 it is provided that the assessee shall be eligible for claiming set off of carried forward losses other than speculation losses from the income. It is not the requirement of section 71 or 72 that the losses must be claimed in the return of income. The ld. AR further argued that in the original return of income for the assessment year 2002-03 the assessee had declared total income as Nil‟. Thus, there was no question of claiming set off of loss in subsequent assessment years. The issue of carried forward of business loss emanated from computation of loss by the Assessing Officer in consequence to the order of Tribunal. At the time of filing return of income for the subsequent assessment years i.e. assessment years 2003-04 to 2006-07 it was not within the knowledge of assessee about business loss determined by the Assessing Officer in assessment year 2002-03. Hence, the same was not claimed in the return of income. Submissions of Department 4. On the other hand Shri Ashok Babu representing the Department vehemently defended the impugned order. The ld. DR submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uance to the orders by revisional/appellate authorities. The provisions of sub-section (3) as they were applicable to the assessment year under appeal are reproduced herein- below : (3) The provisions of sub-sections (1), (1A), (1B) and (2) shall not apply to the following classes of assessments, reassessments and recomputations which may, subject to the provisions of sub-section (2A), be completed at any time- (i) [***] (ii) where the assessment, reassessment or recomputation is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 250, 254, 260, 262, 263, or 264 [or in an order of any court in a proceeding otherwise than by way of appeal or reference under this Act ; (iii) where, in the case of a firm, an assessment is made on a partner of the firm in consequence of an assessment made on the firm under section 147. Thus, the time limit specified in sub-section (1) and sub-section (2) to section 153 does not apply to the orders passed for giving effect to the order of revisional/appellate authorities. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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