TaxTMI 
TaxTMI 
2026 (3) TMI 681
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....r referred to as 'the Act') dated 01.06.2023 by the Assessing Officer, AO, CPC (hereinafter referred to as 'ld. AO'). 2. The Ground No. 1 raised by the assessee was stated to be not pressed by the ld AR for which necessary endorsement has been duly made in our file. Accordingly, ground No. 1 is hereby dismissed as not pressed. 3. The Grounds No. 2, 3 and 3.1 raised by the assessee are challenging the action of the ld CIT(A) in upholding set off of assessee's income against unabsorbed depreciation as against brought forward business losses and whether the same would be covered by Section 79 of the Act. 4. We have heard the rival submissions and perused the materials available on record. The assessee is a subsidiary of Indraprastha E....
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....ntly, the Resolution Process of IL&FS and its Group Companies were taken up by the NCLT. Further, it was submitted that post NCLT orders, the assessee has been taken over by new management. The new investor is a venture of Government of India through National Investments and Infrastructure Fund (NIIF) and the UK Government's Department for International Development. The new investor, being funded by Government of India and Government of UK, had performed all the financial and other due diligence and thereafter had acquired the assessee company. It was submitted that even during this process, no financial irregularities have been found. Further, as per NCLT order, in the larger interest of the nation, all claims (whether disclosed or und....
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....s of same are as under:- SI No Assessment Year Date of filing of 1TM Business. Loss Unabsorbed Depreciation 1 2013-14 27-5ep-13 6,309,261 26,392 2 2014-15 29-Sep-14 995,661 71,208 3 2015-16 30-Sep-15 1,151,656 75,967 4 2016-17 29-Sep-16 1,610,493 81382 5 2017-1S 31-Oct-17 495,387,103 1,658,369,391 6 2018-13 30-Octr-18 531,911,355 1,132,871,982 7 2019-20- 31-Oct-19 413,890,636 377,483,502 8 2020-21 15-Feb-21 24,059,818 236,766,733 6. The return filed by the assessee was duly processed u/s 143(1) of the Act wherein, the income of the current year was set off against the unabsorbed depreciation instead of br....
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....urrent year depreciation on a deeming fiction. The provisions of Section 72 of the Act deal with the manner of set off of brought forward business losses against the business income and the unabsorbed portion thereon to be carried forward to subsequent years. A combined reading of provisions of Section 32(2) of the Act and Section 72(2) of the Act make it very clear that first brought forward business losses would have to be adjusted with the business income of the year and after that unabsorbed depreciation would be set off. Hence, we are in complete agreement with the contentions of the assessee herein and direct the ld AO to first allow set off of the business income with brought forward business loss of earlier years. 10. The ld CIT(....
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....Amount Appellant's submission 1. TDS on interest 2,92,82,639 The appellant has written back certain liabilities. These liabilities were debited to P&L account in earlier year and in absence of TDS deduction same were disallowed u/s 40(a)(ia) of the Act. However, immediately such expense were written back, therefore the TDS which was payable on such expense has been written back during the year under consideration. In view of the above both Sr. no 1 amounting to 2,92,82,639 and Sr. no 2 amounting to Rs. 42,06,177 are pertaining to such TDS expense written back. In this regard we wish to state that, the Appellant had already disallowed the said amount in the year in which the liability was charged to Profit and Loss accou....
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.... Total 32,70,97,222 14. From the above table, it is very clear that items mentioned at Sl Nos. 1, 2 and 3 are not liable to be taxed u/s 41(1) of the Act as the very same sums were voluntarily disallowed by the assessee in earlier years in the return in the years in which said provisions were made. In respect of items mentioned at Sl. No. 4 and 5 above in the table, the same represent capital creditors for which no deduction has been claimed by the assessee in the earlier years. Hence, the provisions of Section 41(1) of the Act per se could not be made applicable for the same. Hence, no addition could be made u/s 41(1) of the Act at all in the instant case. Since, relief is granted to the assessee on first principle, the ....