Tribunal allows appeals, permits carry forward of losses, emphasizes complete return disclosure

The Tribunal allowed all appeals filed by the assesses, directing the Assessing Officer to permit the carry forward of losses as claimed in the assessment years under consideration. The Tribunal emphasized that the technical error in acknowledgment generation should not penalize the assessee, as the losses were properly disclosed in the detailed return filed under Sec 153A. The Tribunal rejected the A.O.'s addition of income, highlighting the importance of considering the complete return under Sec 153A for assessing current year income or losses.

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Issues:
Appeals against orders of ld.CIT(A)-IV for A.Ys. 2011-12 to 2013-14 under Sec 143(3) read with Sec 153A of IT Act.

Analysis:
The appeals filed by the assessee challenged the orders of ld.CIT(A)-IV for A.Ys. 2011-12 to 2013-14 under Sec 143(3) read with Sec 153A of the Income Tax Act, 1961. The main contention was the addition made by the Assessing Officer (A.O.) in respect of loss that was not carried forward in the "Total loss carried forward" column of the ITR-6 filed under Sec 153A. The Tribunal noted a similar issue decided in a previous order dated 09/05/2019. The Tribunal held that the assessee had not declared any additional income post-search and had duly shown current year losses in various sections of the ITR. The A.O. wrongly observed the current year income as NIL without considering the detailed return filed under Sec 153A, which clearly indicated the current year loss. The Tribunal found that the technical error in acknowledgment generation did not warrant treating the current year losses as additional income. The Tribunal emphasized that the assessee had genuinely believed the losses were being assessed correctly. Therefore, the Tribunal directed the A.O. to allow the benefit of carry forward of losses as claimed in all the assessment years involved.

The ld. CIT(A) had rejected the carry forward of current year losses in all the assessment years, alleging that the assessee did not claim the losses in the return filed under Sec 153A. However, the Tribunal found that the assessee had consistently claimed the losses in both returns filed under Sec 139(1) and Sec 153A, but a technical error led to the losses not reflecting in the acknowledgment. The Tribunal noted that the assessee had not offered any additional income post-search and had disclosed all relevant details in the ITR. The Tribunal emphasized that the A.O. failed to consider the detailed return filed under Sec 153A, which clearly showed the current year losses. The Tribunal concluded that the assessee should not be penalized for a genuine technical error in acknowledgment generation and directed the A.O. to allow the carry forward of losses as claimed in all the assessment years involved.

In conclusion, the Tribunal allowed all the appeals filed by the assesses, following the reasoning and decision given in the previous order dated 09/05/2019. The Tribunal found no merit in the addition made by the A.O. by disregarding the assessee's claim of loss filed in the return under Sec 139(1) of the Act. The Tribunal emphasized the importance of considering the complete return filed under Sec 153A and not solely relying on the acknowledgment for assessing the current year income or losses.

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