TMI Blog2022 (10) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... he return of income was filed after due date prescribed under section 139(3) of the Act, thereby, the loss claimed in the return cannot be carry forwarded as per section 80 of the Act. Moreover, it is also an admitted fact that the assessee company was under lock-out by Tamilnadu Industrial Investment Corporation (TIIC) since 1998 and thereby, the authorities below have observed that there was no business activities carried during the previous year relevant to the assessment year under consideration and the assessee cannot compute income/loss from business under section 28 of the Act. Under the above facts and circumstances, we find no infirmity in the order passed by the ld. CIT(A) on this issue and accordingly, the ground raised by the assessee is dismissed. Capital gain on transfer of property to the GPA holder - case of AO is that the assessee has leased out a property through one of the Director - HELD THAT:- The assessee company has taken a land on lease from one of the directors Shri Sivasamy for 30 years. Subsequently, the company gave a general power of attorney in favour of Shri P. Parameswaran, who is the director of the company. The same property was sold through S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure, the assessment was completed under section 143(3) of the Act dated 15.03.2015 accepting the returned loss of the assessee. 3. Subsequently, the ld. PCIT issued show-cause notice under section 263 of the Act on the ground that the assessment order passed by the Assessing Officer under section 143(3) of the Act dated 15.03.2015 for the assessment year 2013-14 was found to be erroneous and prejudicial to the interest of the Revenue and called the assessee to explain. One of the Directors of the assessee company Shri Vijay, K.S. appeared before the ld. PCIT and the ld. PCIT asked him to explain in respect of income from business relating to interest and audit fee payment of Rs.1,47,33,032/-. However, no proper explanation was given. It was noticed by the ld. PCIT that the assessee filed the return of loss on 22.02.2014, i.e., after the due date prescribed under section 139(1) of the Act, thereby the assessee is not eligible to carry forward the loss of ₹.1,47,33,032/-. Moreover, Shri Vijay, K.S., Director who appeared on behalf of the company was not able to explain the transaction resulting in capital gains. Regarding the other issues also, he has not produced any materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Assessing Officer is erroneous and prejudicial to the interest of Revenue and also directed the Assessing Officer to pass fresh order in accordance with law by considering the issues after making proper enquiry and the verifying the details. We find no infirmity in the order passed by the ld. PCIT dated 01.03.2018. Thus, the appeal filed by the assessee is dismissed. I.T.A. No. 3243/Chny/2019 8. The appeal filed by the assessee is delayed by 10 days in filing the appeal before the Tribunal. By filing a petition for condonation of delay in support of an Affidavit explaining the reasons for the delay, the ld. Counsel for the assessee has prayed for condoning the delay and admitting the appeal for adjudication. The ld. DR has not seriously object to the submissions of the ld. Counsel. Since the assessee was prevented by reasonable cause for the delay in filing the appeal before the Tribunal, the delay is condoned and admitted the appeal for adjudication. 9. So far as consequential order passed by the Assessing Officer and confirmed by the ld. CIT(A), the assessee preferred further appeal before the Tribunal. The present subject matter of appeal before the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act or before the A.O. during the redo assessment proceedings. Before me also the appellant reiterated the same arguments without any evidences/proof. Hence, I do not find any merit in the argument of the appellant. It is apparent that the appellant company ceased its operations since 1998 and the A.O. has correctly held that as there was no business activities during the previous year relevant to the assessment year and the appellant cannot compute income/loss from business under section 28 of the Act. Further, the return of income was also filed after due date prescribed u/s. 139(3) and hence loss claimed in the return cannot be carry forwarded as per section 80 of the Income tax Act. Hence, I am not inclined to accept the submission of the appellant and dismiss all the grounds of appeal related to this issue. 12. We have heard the rival contentions. It is an admitted fact that the return of income was filed after due date prescribed under section 139(3) of the Act, thereby, the loss claimed in the return cannot be carry forwarded as per section 80 of the Act. Moreover, it is also an admitted fact that the assessee company was under lock-out by Tamilnadu Industrial Inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Tirupattur for a sale consideration of ₹.3,00,87,887/-. In the power attorney, the legal heirs of Shri Sivasamy also signed in the document. Therefore, the legal heirs along with Shri Sivasamy relinquished the rights on the property. We find that Shri Sivasamy, who was the land owner is no more land owner. The company has given general power of attorney to Shri P. Parameswaran and he sold the property and loans were cleared from TIIC. We find that the ld. CIT(A) has categorically decided the issue by observing as under: 11. I have perused the assessment order, the grounds of appeal and the above submissions of the appellant. The submissions of the appellant are devoid of any merits. As discussed elsewhere in this order, the A.O. has examined this issuer thoroughly. The A.O. has rejected the contention of the appellant that the ownership over the lands transferred does not belong to the company. As per the A.O. there is no provision in Companies Act to show lease-hold land as asset in balance sheet of the company, as only assets which are purchased by the company for consideration or lands transferred to the company in lieu of allotment of shares be shown as asset in th ..... 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