2023 (1) TMI 568

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....of the Income-tax Act, 1961 (in short 'the Act') by the Centralised Processing Centre (CPC), Bengaluru. The grounds raised by the assessee are reproduced as under: General Ground: 1. On the facts and the circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeal Unit 1) (hereinafter referred as "Ld CIT(A)") erred in making an addition of Rs. 5,44,65,784 to the total income/(loss) of the Appellant. 2. Ground 2 - Reduction in Carry forward losses of AY 2020-21 2.1. The Ld. CIT(A) erred in reducing the loss without providing reasonable opportunity of being heard through virtual hearing to the Appellant, thereby violating the principles of natural justice and additional not following the point 12(3) of ....

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....the assessee filed its return of income for the year under consideration on 13/02/2021 declaring loss of Rs. 55,24,98,770/-. In the intimation order under section 143(1) of the Act dated 28/07/2021 issued by the CPC, the loss of current year to be carried forward was restricted to Rs. 49,80,32,986/-. Aggrieved with the adjustment made by the CPC, the assessee filed application for rectification before the Assessing Officer, on 13/08/2021, however in view of the no response from the Assessing Officer, the assessee preferred appeal before the Ld. CIT(A), but the Ld. CIT(A) in the impugned order dated 20/07/2022 has adjudicated the issue of intra-head adjustment of short-term capital gain against the business loss by the assessee. The relevant....

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....t, the carried forward and set off of loss arising in a business is subject to the following restrictions (i) the business loss can be carried forward and set off against the profits of any business in a subsequent year (ii) loss cannot be carried forward for more than 8 assessment years. The time limit of 8 years is not applicable in the case of unabsorbed depreciation allowance, unabsorbed capital expenditure on scientific research and unabsorbed capital expenditure on family planning (iii) such loss cannot be carried forward unless the return is filed within the time limit of section 139(1). (iv) Business loss can be carried forward and set off against any business profit and such a business loss can be carried forward for 8 year....

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....oduced for ready reference as under: 143. [(1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; 22***] (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; (iv) disallowance of expenditure 2 or increase in income] indicated in the audit repo....