Appeals allowed for assessment year 2011-12 due to non-adjudication of issues under Income Tax Act.

The appeals were allowed for statistical purposes as the issue of disallowance of brought forward losses and TDS credit for the assessment year 2011-12 under sections 143(1) and 154 of the Income Tax Act, 1961 was not adjudicated on merits. The matter was remanded to the Assessing Officer for proper consideration, granting the taxpayer three opportunities for a hearing and evidence submission. The judgment highlighted the importance of addressing the substantive issues raised by the assessee rather than technical objections.

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Issues:
Assessment year 2011-12 - Correctness of disallowance of brought forward loss and TDS credit under sections 143(1) and 154 of the Income Tax Act, 1961.

Analysis:
The appeals arose from separate orders of the CIT(A)-9, Kolkata, concerning proceedings under sections 143(1) and 154 of the Income Tax Act, 1961. The assessee challenged the correctness of the disallowance of brought forward loss and TDS credit. The assessee's return stated commission income, brought forward losses, and TDS claimed. The assessed income was determined without allowing the set off of brought forward losses/TDS credits. The assessee filed rectification and appeals, which were rejected. The appeals raised the same issue of disallowance of brought forward losses and TDS credit.

During the hearing, it was noted that neither the Assessing Officer nor the CIT(A) had adjudicated on the merits of the assessee's grievance. The objections raised were technical, focusing on non-maintainability and limitation. The issue of brought forward losses and TDS credit was restored to the Assessing Officer for necessary adjudication on merits. The taxpayer was to be given three opportunities for a hearing and could submit all necessary evidence. The appeals were allowed for statistical purposes based on the above terms.

In conclusion, the judgment addressed the challenges regarding the correctness of the disallowance of brought forward losses and TDS credit for the assessment year 2011-12 under sections 143(1) and 154 of the Income Tax Act, 1961. The decision emphasized the need for a proper adjudication on the merits of the issue, providing the taxpayer with opportunities for a fair hearing and submission of evidence.

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