2023 (5) TMI 479

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....the Act"), relevant to the Assessment Year 2004-2005. 2. The Revenue has raised the following grounds of appeal: 1. The Ld.CIT(A) has erred in law and on facts in allowing the assessee to set off the unabsorbed business loss or depreciation from out of the total income assessed when no such provision exists for allowing set off of brought forward losses against additional income offered before Hon'ble ITSC. 2. The Ld CIT(A) has erred in law on facts in allowing to set off the unabsorbed business loss or depreciation from out of the total income assessed for AY 2003-04 and AY 2005-06 without appreciating the fact that the assessee had filed belated returns u/s 139(1) of the act in these years and hence, no set-off of losses was all....

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.... revised computation of income. The assessee again attached the revised computation of income before the AO during the assessment proceedings. However, it was contended by the assessee that even after making the addition of 1,46,50,000/- to the total income, the same will get set off against brought forward losses of the earlier years. However, the AO disagreed with the contention of the assessee by observing as under: The provisions of Sub-section 1A to ID of Section 245C of the Act clearly provides that there is no room for allowing set-off of brought forward business loss or unabsorbed depreciation/investment allowance. In view of the above, the assessee's submission in this respect is rejected. [The income of Rs. 1,46,50,000/- off....

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.... return has been furnished the additional tax shall be the difference of the tax on aggregate of the total income returned and the tax payable on the income returned in the ROI filed. The ITSC in this case have not admitted the application because appellant has not paid the requisite amount of additional tax. Once the application is abated the AO becomes entitled to use that information in the assessment as per the provisions of section 245HA(3) of the Act. In this case, AO has used the information which is the amount of additional income offered by the appellant in the SOF before the ITSC. In other words AO can add the amount of additional income offered before ITSC however, in case after making such addition the income is still a loss or ....