TMI Blog2021 (4) TMI 1350X X X X Extracts X X X X X X X X Extracts X X X X ..... ricted to zero income therein resulting in loss figures as well. While holding so, it would not be out of context altogether if we refer to hon ble apex court s larger bench decision in CIT Vs. Manmohan Das [ 1965 (11) TMI 33 - SUPREME COURT ] that an AO arriving at loss figure cannot restrict the same from being carried forward in earlier year since it is for the assessing authority of the subsequent year to deal with such an issue and if at all the former of them decides the same in such a manner, it is not binding on the assessee in the said subsequent year. We adopt the very reasoning herein as well mindful of the fact that if the impugned expenditure claimed results the assessee's income computed in loss , its expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed in the instant appeal read as follows : 1) The order of the learned Commissioner of Income-tax (Appeals) is erroneous to the extent it is prejudicial to the appellant. 2) The learned Commissioner of Income-tax (Appeals) erred in holding that the expenditure debited to the profit and loss account is allowable to the extent it reduces the profit to Rs.NIL. 3) The learned Commissioner of Income-tax (Appeals) erred in holding that the income of the appellant be determined at Rs.NIL without considering the fact that there was loss during the year under consideration. 4) Any other ground or grounds that may be urged at the time of hearing. Learned counsel invited our attention the CIT(A) identical detailed discussi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et profit to zero only. We find no reason to sustain the same. We make it clear that there is no provision in the Act and more particularly in Chapter IV-D from Section 28 to 44BB dealing with profit and gains of a business or a profession which can suggest that an expenditure claim s disallowance could be restricted to zero income therein resulting in loss figures as well. While holding so, it would not be out of context altogether if we refer to hon ble apex court s larger bench decision in CIT Vs. Manmohan Das (1966) 59 ITR 699 (SC) that an Assessing Officer arriving at loss figure cannot restrict the same from being carried forward in earlier year since it is for the assessing authority of the subsequent year to deal with such an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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