Court Rules Section 153A Assessment Unjustified; Allows Carry-Forward of Losses Despite Late Return Filing.

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....Assessment u/s 153A - belated return in response to notice u/s 153A - denying carry-forward of loss - it is undisputed that no assessment was pending as on the date of the search and, therefore, the AO is not permitted to make changes in the whatever determined in regular assessment proceeding on the basis of the return of income filed, in absence of any incriminating material. Since in the regular proceeding, the assessee is entitled to carry forward the losses in terms of the provision of the Act, the action of the Assessing Officer in denying the carry forward of the loss on account of the late filing of the return under section 153A of the Act, is not justified - AT....