2026 (3) TMI 812

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....y the ld. AO for furnishing inaccurate particulars of income in respect of carry forward of losses. 3. The facts in brief are that the assessee filed the return of income on 17.10.2016, declaring total loss of Rs.2,98,51,729/-. The assessee is mainly engaged in the activity of power transmission. The assessment was completed u/s 143(3) vide order dated 11.12.2018, by assessing the loss at Rs.2,74,27,701/-. The carry forward loss for A.Y. 2017-18 was Rs.43,33,71,531/-. Thereafter, the ld. PCIT revised the assessment by invoking the provisions of Section 263 of the Act for fresh adjudication and in the assessment proceedings the ld. AO observed that the assessee filed the ITR u/s 139(4) of the Act on 07.10.2017, along with tax audit report....

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....e appellant as follows: In this case the assessee, being Meghalaya Power Transmission Corporation limited (MePTCL) is mainly engaged eaming income from power transmission bearing PAN number AAICM1936G and had filed its return of income on 17-10-2016 declaring total income at loss at Rs (-) 29051729/ The sold return was treated as defective u/s 139(9). In view of this, consequently, return was filed again this time u/s 139(4) on 07.10.2017. Assessment in this case was completed vide order u/s 143(3) of the Income tax Act dated 11/12/2018 at total loss of Rs. (-) 2,74,27,701/- as against the returned loss of Rs. (-)2,98,51,729/- claimed by the assessee in its return of income filed on 07.10.2017. Later, it was seen that the ....

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...."Schedule CFL". Hence, whatever the provided by the Income Tax Department automatically amount of loss is mentioned /computed in the Profit and loss account, the same amount is automatically transferred under the head of "Details of losses to be carried forward to future years" under the column of current year losses. There is no option to delete the said amount as the cell is greyed out. A screenshot of the same is attached for your kind reference. ................................... Thus it is evident that there was no malafilde intention of the assessee to claim the carry forward and further set off the loss against any income in future years. As the tax system of the income tax department is robust and technologically ....

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....llowed." 5. After hearing the rival contentions and perusing the materials available on record, we find that the penalty was imposed by the ld. AO u/s 271(1)(c) of the Act for claiming wrong brought forward losses and set off thereof which was not as per the provisions of the Income-tax Act, 1961 (the Act). Therefore the said losses are not allowed to be carry forward and set off against the income of the assessee and constitute filing of inaccurate particulars of income by the assessee. Therefore, the ld. AO has rightly imposed the penalty on the assessee for furnishing in accurate particulars of income as the assessee has claimed the loss which was not allowable to the assessee under the Provisions of the Act. While the ld. CIT (A) del....