1994 (12) TMI 119

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....h are being disposed of as under : 2. The assessee in this case carries on the business of manufacturing ice. It filed a return declaring net income of Rs. 27,500 but came to be assessed at a figure of Rs. 1,06,340 in the status of U.R.F. 3. The ITO rejected the claim for set off in respect of carried forward loss of Rs. 51,151 on the ground that no such loss was available as assessment for asse....

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....rder of assessment for assessment year 1984-85 we find that return had been filed showing a loss of Rs. 98,370 and assessment was completed at Rs. Nil with the further direction that the " remaining loss " determined in assessment year 1983-84 shall be carried forward " as per law ". In assessment year 1985-86 the assessee filed a return showing a loss of Rs. 51,150 which comprised of the net inco....

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....ent year 1985-86 and being primarily on account of unabsorbed depreciation and investment allowance. If such is the situation we fail to understand as to how the aforesaid legal claims could be neutralised by the ITO " after discussion " with the assessee. It is a well accepted legal proposition that valid claims of an assessee cannot be nullified by the ITO who is obliged to consider these and al....