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TMI Blog2023 (7) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... essment-year ["AY"] 2018-19, the assessee has filed this appeal on the grounds raised in Appeal-Memo. 2. Heard the learned Representatives of both sides at length and case records perused. 3. Brief facts leading to present appeal are such that the assessee is an educational society which filed Income-tax Return (ITR) of relevant AY 2018- 19 on 30.03.2019 declaring a total income of Rs. Nil. The case was subjected to scrutiny through notices u/s 143(2)/142(1). While framing assessment vide order dated 18.05.2021 u/s 143(3), the AO disallowed depreciation of Rs. 4,93,672/- one Building at Tal on the footing that the said building was not put to use during the year. Accordingly, the AO determined total income at Rs. Nil as under: Income (lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not claimed effect thereof in any manner i.e. neither the assessee claimed set off in current year nor carry-forward to next year. According to Ld. AR, this is evident from following figures appearing at various placed in ITR: (a) At Page No. 19 and 20 of ITR, the assessee furnished "4. Income from other sources - 0", "6. Loss of current year to be set off against 5 - 0". Loss of current year to be carried forward - 0". (b) At Page No. 41 and 42, in the Schedule relating to Set-off of Current Year Losses, the assessee has furnished "i. Loss to be set off - Rs. 6,28,061/-" and "xiv. Loss remaining after set off - Rs. 6,28,061/-". This clearly indicates that the assessee has not claimed any set off in current year. (c) At Page No. 43 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no variation in the Total Income of assessee. Ld. AR submitted that to attract penalty u/s 270A, there has to be any of the situations of under-reported income falling within clauses (a) to (g) of section 270A(2) and in the present case, there is no such situation. He submitted that the clause (g) of section 270A(2) is also not applicable because in the present case for the reason that the total income was reported by assessee at Rs. Nil which remained Rs. Nil at the time of assessment, it is not a case where the assessment has the effect of reducing the loss or converting loss into income. Ld. AR submitted that the penalty imposed by AO is, therefore, not correct in present case; the same must be deleted. 9. Ld. DR for the Revenue rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other income in current year u/s 70 and 71 but in the present case, the assessee was not having any other income, hence unable to claim set off. Further, the carry-forward of loss of "Income from other sources" head to next year is permitted u/s 74A and that section permits carry-forward of a particular type of loss i.e. loss from owning and maintaining race horses. Since the assessee's loss had not arisen from such a source, there was no enabling provision to allow carry forward benefit. Therefore, the software utility itself did not allow set off in current year or even carry forward. 11. Be that as it may, irrespective of whether it was the assessee who voluntarily did not claim any set off or carry forward of loss of "Income from O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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