2024 (2) TMI 460

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.... Act, 1961 ["Act" in short]. 2. Brief facts of the case are that the assessee company filed its return of income for the assessment yea 2018-19 on 29.09.2018 declaring an income of Rs.. NIL after adjusting the brought forward loss of Rs..2,85,98,668/-. The return was processed under section 143(1) of the Act on 02.10.2019 and the income was assessed at Rs..13,10,210/-. Subsequently, the case was selected for limited scrutiny for verification of (i) duty drawback, (ii) unsecured loans & (iii) disallowance u/s. 40A(7) (Gratuity Provision). The assessment proceedings under section 143(3) r.w.s. 143(3A) & 143(3B) of the Act were completed on 08.03.2021 and the returned income has been accepted. 3. On perusal of the assessment records for ....

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....her submission that under column 6(M) of the statutory return, it was specifically mentioned that there was no provision for bad and doubtful debts and the assessee had performed its statutory obligation. The ld. Counsel has further submitted that it was merely a clerical mistake to have entered as a "provision for bad and doubtful debts" in P&L account and thus, no revisional proceedings were warranted. Since having regard to the carry forward losses of earlier assessment years, no prejudice was caused and hence proceedings under section 263 of the Act was not sustainable and prayed for quashing the revision order. 5. On the other hand, the ld. DR supported the revision order passed by the ld. PCIT. 6. We have heard both the sides, p....

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....s per details filed by you regarding loans, there are two Unsecured Loans, namely MD ARM Govind Rajan & P. Duraisami. In this connection, you are requested to please furnish the following: * Confirmations of accounts in-respect of MD ARM Govind Rajan & P. Duraisami from whom unsecured loans have been taken during the year, mentioning their PANs. * Copy of ledger of MD ARM Govind Rajan & P. Duraisarni appearing in your books of accounts in respect of such unsecured loans. 4. You are also requested to please furnish complete details of Unsecured Loans, if there are other than above taken during the year and furnish the following: * Confirmations of accounts in respect of all the parties from whom Unsecured ....

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....issions along income computation before the ld. PCIT which was reproduced at para 6 of the order. From its computation, it is amply clear that if at all the disallowance of provisions for bad and doubtful debts of Rs..24,48,406/- is added, the brought forward losses of earlier years in the sum of Rs..5,59,54,365/- reported in page 56 of the IT under Schedule-CFL is adjusted to the extent of the current year's income under the head "income from business or profession" Rs..3,10,47,074/- and balance loss of Rs..2,49,07,291/- [Rs..5,59,54,365-Rs..3,10,47,074] will have to be carried forward to future years thereby, the total income of the assessee would be NIL and whatever TDS collected are refundable. Moreover, in this case, the Assessing Offi....