2026 (3) TMI 1025

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....deduction u/sec 57(iv) of the Act pertaining to the interest income earned on receipt of enhanced compensation made by the Assessing Officer. 2. The brief facts of the case are that, the assessee is a body of individuals age old institution governed by the code of comunidades under the state government. The assessee had filed the return of income for A.Y.2016-17 on 31.03.2017 disclosing a total income of Rs. 2,38,96,960/-. Subsequently the case was selected for scrutiny under CASS for the fallowing reasons (i) Large refund claimed out of self assessment tax (ii) High ratio of refund to TDS and (iii)Delayed payment of tax and return of income filed after due date. Further the Assessing Officer (A.O) has issued notice u/sec 143(2) and u/se....

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....9(5) of the Act and observes that in the absence of filing a revised return within the time allowed, the claim cannot be accepted and deduction u/sec 57(iv) of the Act is denied and is rejected. Finally the A.O. disallowed the carry forward of losses setoff of Rs. 1,49,05,760/- and assessed the total income of Rs. 3,88,02,720/- and passed the order u/sec143(3) of the Act dated 27.12.2018. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions and findings of the AO but (i) sustained the disallowance of carry forward of loss setoff pertaining to A.Y.2007-08 and (ii) The CIT(A) has admitted the additional claim of deduction u/se....

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.... substantiated the submissions with the factual paper book and judicial decisions and prayed for allowing the appeal. Per Contra, the Ld.DR supported the order of the CIT(A). 6. We heard the rival submissions and perused the material on record. The sole crux of the disputed issues that the CIT(A) has erred in partially sustaining the action of the A.O on the denial of setoff of carry forward losses and(ii)denial of claim of deduction u/sec 57(iv) of the Act pertaining to the interest income earned on enhanced compensation. The Ld.AR emphasized that the assessee has submitted the details as called for by the authorities. On the first disputed issue, of setoff of carry forward capital gains loss of A.Y2007-08, the Ld.AR contentions are tha....