2011 (9) TMI 1231 - AT - Income Tax

Appeal denied for loss set-off due to late return filing under Income-tax Act

M/s. Lakshmi Machine Works Ltd. Versus The Additional Commissioner of Income-tax, Range IV, Coimbatore

The Tribunal dismissed the appeal filed by the assessee, upholding the disallowance of the set off of loss amounting to &8377; 4,45,09,700/- for the ... - Issues involved: Disallowance of set off of loss for the assessment year 2003-04 of a merged company in the hands of the assessee u/s 143(3) of the Income-tax Act, 1961.Summary:Issue 1: Disallowance of set off of loss for the assessment year 2003-04The appeal was filed by the assessee against the order of the Commissioner of Income-tax(Appeals) disallowing the set off of loss amounting to &8377; 4,45,09,700/- pertaining to the assessment year 2003-04 of a merged company, M/s. Jeetstex Engineering Ltd. The assessing authority held that since the return for the said year was filed beyond the due date, the loss could not be allowed to be set off. The Commissioner of Income-tax(Appeals) upheld this decision, leading to the second appeal before the Tribunal.The grounds raised by the assessee argued that the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) should prevail over the Income-tax Act, and that the BIFR's scheme should exempt them from certain provisions. However, the Tribunal found that the loss for the assessment year 2003-04 was not determined in lawful proceedings due to the belated filing of the return, rendering it ineligible for carry forward under the Income-tax law. Consequently, the Tribunal dismissed the appeal, upholding the disallowance of the set off for the said amount.In conclusion, the Tribunal dismissed the appeal filed by the assessee, upholding the disallowance of the set off of loss amounting to &8377; 4,45,09,700/- for the assessment year 2003-04 due to the belated filing of the return, as per the provisions of the Income-tax Act, 1961.