TMI Blog2023 (5) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... ught forward losses/unabsorbed depreciation against such income which eventually make the taxable income at Rs. Nil. Once income has been determined under normal computation of income then it implies that all the other provision including the provision of setting off loss/unabsorbed depreciation will equally be applicable as per the law. In other words, the assessee is entitled set off the brought forward losses/ unabsorbed depreciation against the income subject to the provisions of law. It is also important to note that the assessee has filed the return of income belatedly for the year under consideration but there is no prohibition to adjust the brought forward losses against the income declared belatedly in the return of income under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d returns u/s 139(1) of the act in these years and hence, no set-off of losses was allowable in accordance with section 80 of the act. 3. On the facts and circumstances of the case, Ld CIT(A) ought to have upheld the order of the Assessing Officer. 4. It is, therefore, prayed that the order of Ld CIT(A) may be set aside and that of the Assessing Officer be restored 3. At the outset, we note that the appeal was instituted by the Revenue way back in the year 2018 and thereafter it has been listed on several occasion for hearing. When the matter was called for hearing, none appeared on behalf of the assessee, therefore, we decided to proceed with the matter after hearing the Ld. DR for the revenue. 4. The only issue raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove, the assessee's submission in this respect is rejected. [The income of Rs. 1,46,50,000/- offered by the assessee before the Handle Settlement Commission, hence the assessee's claim for carried forwarded and setoff of business loss is not in accordance with the provisions of section 72 of the I.T. Act and hence the same is rejected. As the assessee has disclosed an amount of Rs.1,46,50,000/- being undisclosed income of A.Y.2004-05 before the Hon'ble Settlement Commission, the same is, therefore, added to the total income of the assessee as undisclosed income. 7. Accordingly, the amount of Rs.1,46,50,000/- is added to the total income of the assessee. 6. Aggrieved assessee preferred an appeal before the Ld. CIT(A), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional income offered before ITSC however, in case after making such addition the income is still a loss or appellant has unabsorbed business loss or depreciation loss which is otherwise allowable to the appellant to be set off as per the provisions of the Act the same cannot be denied. No such provision exist in section 245HA or in section 245C of the Act. Hence, in view of this clear legal position action of AO in not allowing the set off of brought forward loses including the brought forward depreciation loses is bereft of 'any legal sanction and the appeal of the appellant on this issue deserves to be allowed. Accordingly, AO is directed to allow set off of carry forward of brought forward losses including the depreciation loss fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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