2020 (1) TMI 1614

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.... Income Tax Act, 1961 (the Act) concerning AY 2013-14. 2. The ground of appeal filed by the Revenue reads as under:  "1. The Ld. CIT(A) has erred in law and on facts in deleting the disallowance of carry forward of losses on account of unrealized amount of advances amounting to Rs.(-)18,14,14,727/-, ignoring the provisions of section 139(3) of the IT Act, 1961." 3. None appeared for the assessee. The appeal of the Revenue is accordingly heard ex parte in the absence of the assessee. 4. When the matter was called for hearing, the learned DR for the Revenue relied upon the assessment order. 5. We have perused the order of the AO as well as the appellate order of the CIT(A). 6. On perusal, it is noticed that the as....

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....e threadbare and has recorded a finding in favour of the assessee for non-applicability of Section 139(3) of the Act in the circumstances which reads as under:  "4. DECISIONS: I have considered the facts of the case and the argument of the appellant carefully. All three grounds are taken together for adjudication. The factual matrix as per para-3 above have been kept in mind while deciding the issue. It is undisputed fact that Bank is under liquidation with effect from 28/03/2003 and administration of bank is in hands of official of cooperative department of Govt. of Gujarat for the purpose of realising advances under various legal methods provided in Gujarat Cooperative Societies act, 1962. Bank retains part of the s....

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....D INVESTMENT CO. LTD. V/S. CIT (2015 378 ITR 718 (CAL) as well as CIT V/S. BRITISH INSULATED CALENDER'S LIMITED 202 ITR 354 (BOMBAY) AND ACIT V/S. SANJAY BASRATHI GEMS LTD 84 TAXMANN.COM 138 (JAIPUR). Under the circumstances, we agree with the submission of assessee for setoff of loss against current year income and assessee shall not have right of carry forward of business loss u/s. 72(1) of the I.T. act, 1961. While considering alternative plea of diversion of income at source, I have gone through judgement of Supreme Court as well as judgement of Gujarat High Court in the case of Visnagar Nagarik Sahakari Bank Ltd. (Supra) as jurisdictional High Court has upheld statutory obligation upon banks under liquidation availing insu....