TaxTMI 
TaxTMI 
2021 (2) TMI 1001
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....llowance of loss to be carried forwarded which was caused by addition of income tax expenses wrongly made by assessee company in original computation due to some clerical error. 2. Under the facts and circumstances of the case the Learned CIT(A) 4, Jaipur has grossly erred in law as well as facts in confirming the disallowance of loss to be carried forwarded by considering the order of Hon'ble Rajasthan High Court in case of M/s Jai Steel Vs. ACIT, 36 taxmann.com 523." 2. The ld AR submitted that the assessee company is having income from toll collection. It filed its original return of income on 21.09.2012 declaring loss of Rs. 22,31,247/-. A search was conducted on 17.12.2014 at the premises of assessee. In response to notice ....
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....s loss of Rs. 44,51,756/- was claimed for carry forward. Thus, in the return filed u/s 153A, no additional claim/ deduction is made, only the clerical mistake apparent on record is rectified. 4. It was submitted that the Hon'ble Rajasthan High Court in case of Jai Steels Vs. ACIT has held that it is not open for the assessee to seek deduction or claim expenditure which has not been claimed in the original assessment, which assessment already stands completed, only because assessment under section 153A of the Act in pursuance of search or requisition is required to be made. However, the present case is not a case of claim of deduction or expenditure but only a case of correct computation of income. Hence, the decision of Jai Steels relied....
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.... in the return filed in response to notice u/s 153A of the Act. 7. We have heard the rival submissions and perused the material available on record. The comparative position in the original return of income filed under section 139(1) and the return of income filed in response to notice u/s 153A as submitted by the assessee during the course of appellate proceedings before the ld CIT(A) is as under:- 8. The claim of the assessee is that income tax expenses of Rs. 22,20,509/- has been added twice to the loss of Rs. 68,46,302/- as per the profit/loss account while filing the original return of income and the same has now been rectified while filing the return in response to notice u/s 153A of the Act. On perusal of the assessee's financi....
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....ected to single disallowance while filing the return of income in response to notice under section 153A of the Act. 10. The Assessing officer has not stated any specific reasons for not accepting the loss as per return filed in response to notice u/s 153A of the Act. All he has stated is that original return e-filed on 21.09.2012 wherein loss of Rs. 22,31,247/- has been claimed which was revised to a loss of Rs. 45,51,756 in the return filed u/s 153A and loss claimed in the original return of income e-filed u/s 139(1) will only be allowed. The ld CIT(A) has however stated that it is a case of fresh claim and the AO was right as no fresh claim can be filed in return filed u/s 153A of the Act. We find that both the authorities have not app....
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....ty of facts and circumstances of the case and in light of aforesaid discussions, we are of the considered view that it is a not a case of fresh claim of loss in the return filed u/s 153A and therefore, the decision of Hon'ble Rajasthan High Court in case of Jai Steels (supra) doesn't support the case of the Revenue. The decision of the lower authorities is set-aside and the matter is decided in favour of the assessee and against the Revenue. In the result, appeal of the assessee is allowed. Order pronounced in the open Court on 08/07/2020. ============= Document 1 Particulars Profit (Loss) as per P&L A/c. Add: Income Tax Expenses Net Loss Add: Income Tax Expenses (as above, double entry) Add: Depreciation as per....