Appeal partially allowed, losses not allowed for late filing, loan waiver income excluded. General issues addressed.

The Tribunal partly allowed the appeal, upholding the non-allowance of brought forward losses due to late filing of returns but directing the exclusion of the principal portion of the loan waived from the total income. Other issues were either considered general or consequential and did not necessitate separate adjudication.

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Issues Involved:
1. Confirmation of total income.
2. Non-allowance of set-off of brought forward losses.
3. Disallowance of loss claimed.
4. Entitlement to set-off of previously determined loss.
5. Timeliness of income returns filing.
6. Taxability of loan write-back.
7. Charging of interest under Sections 234B and 234C.

Issue-wise Detailed Analysis:

1. Confirmation of Total Income:
The assessee's appeal contested the confirmation of total income at Rs. 1,17,04,178 by the CIT(A). The Tribunal upheld this confirmation, noting that the set-off of brought forward losses was not permissible due to the late filing of returns in previous years.

2. Non-allowance of Set-off of Brought Forward Losses:
The main grievance was the non-allowance of set-off of brought forward business losses against current year business income. The Tribunal noted that the returns for earlier years were filed beyond the time prescribed under Section 139(1). As per Section 139(3), losses cannot be carried forward if returns are not filed within the due date. The Tribunal confirmed the CPC's action of not allowing the set-off.

3. Disallowance of Loss Claimed:
The disallowance of the loss claimed by the assessee was upheld. The Tribunal noted discrepancies in the quantum of brought forward business losses claimed for set-off. The losses were overstated by Rs. 70,03,014. The Tribunal emphasized that losses declared in returns cannot be modified unless revised returns are filed.

4. Entitlement to Set-off of Previously Determined Loss:
The assessee argued that the loss of Rs. 61,11,994 for A.Y. 2017-18 was already determined as allowable by the CPC. However, the Tribunal held that the AO assessing the year in which set-off is claimed has the authority to decide on the carry forward and set-off of losses. The Tribunal cited the Supreme Court's decision in CIT Vs. Manmohan Das to support this view.

5. Timeliness of Income Returns Filing:
The assessee contended that the due date for filing returns should be 30th September, as its accounts were required to be audited per the trust deed. The Tribunal found no legal requirement for auditing the books under the Income Tax Act or the Indian Trust Act. Therefore, the due date applicable was 31st July, as considered by the CPC.

6. Taxability of Loan Write-back:
The alternative contention was that the write-back of the loan is not a cessation of trading liability and not chargeable to tax under Section 41(1). The Tribunal agreed, noting that the principal portion of the loan waived is not taxable under Section 41(1), following the Supreme Court's decision in CIT vs. Mahindra & Mahindra Ltd. The Tribunal directed the AO to exclude the principal portion of the loan waived (Rs. 2,00,18,970) from the total income.

7. Charging of Interest under Sections 234B and 234C:
The Tribunal did not specifically address this issue in detail, as it was consequential to the other findings.

Conclusion:
The appeal was partly allowed. The Tribunal upheld the non-allowance of brought forward losses due to late filing of returns but directed the exclusion of the principal portion of the loan waived from the total income. Other grounds were either general or consequential and did not require separate adjudication.

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