TaxTMI 
TaxTMI 
2015 (9) TMI 1745
X X X X Extracts X X X X
X X X X Extracts X X X X
....losses to be brought forward for set off, when the assessee had not claimed in its return of income. 2. On the facts and in the circumstances of the case, the ld CIT(A) was not justified in accepting the contention of the assessee and not accepting the findings of the AO in violation of Rule 46A." 2. The brief facts of this case are that for the assessment year under consideration, the assessee company was engaged in the business of manufacture and sale of 'medium density fiber boards' and formaldehyde. The return was processed under section 143(1) on 13.3.2010 on a total income of Rs.3,06,42,500/-. Thereafter, the assessee detected a mistake in its return and filed a rectification petition before the AO u/s.154 stating that the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... about the claim of losses brought forward and to be carried forward for being set off against profit of subsequent years. The AO also stated that it is a settled position of law that if an assessee does not claim brought forward loss in the return of income filed by due date, the loss will not be allowed to be carried forward to future. It was in this backdrop that the Assessing Officer did not find any merits in the petition u/s.154 and, accordingly, rejected the same. 3. Aggrieved, the assessee carried the matter in appeal before the ld CIT(A), whereby, ld CIT(A) observed that the ld A.R. of the assessee pointed out a letter of the jurisdictional Joint Commissioner of Income Tax, Range-2, Bhubaneswar and the relevant portion of that l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....overnment would like to profit unduly on certain technical omissions of an individual or a corporate tax payer. Taxation is based on the theory of real income and under the Indian Income tax Act, provisions are included to ensure a fair play in determination of tax payable by the tax payers. The ld CIT(A) further observed that it is an undisputed fact that the assessee company had genuinely accumulated losses and there is no dispute regarding the amount of unabsorbed business loss and unabsorbed depreciation which are to be brought forward to be considered in assessment year 2008-09. Secondly, there is no dispute regarding fulfillment of technical contentions for claiming carried forward of loss/depreciation such as filing of return within ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act helps to guide them and not to penalize them. In the present case, it is a fact on record that the assessee has filed its return of income in due time and whatever relief and rectification that were claimed by the assessee was a bonafide one. There was a technical fault because of which, the legal claim of the assessee should not be denied. The legal claim still remains good. Therefore, in our view, the order of the ld CIT(A) directing the AO to modify the order u/s.154 and allow proper relief to the assessee stands good and proper. Hence, we reject Ground No.1 of appeal filed by the revenue. 7. The next ground relates to violation of Rule 46A of ITAT Rules. This rule categorically states that if any additional evidence is taken up ....