Trinity Opportunity Fund I Vs Assessing Officer-Int Tax (ITAT Mumbai)
Material Facts: The assessee, a foreign company incorporated in Mauritius and registered as a Category-I Foreign Portfolio Investor (FPI) with SEBI, filed its return of income for AY 2023-24 on 20.10.2023 declaring total income of Rs. 12,54,49,410 after claiming set-off of brought forward capital losses relating to AYs 2019-20, 2020-21 and 2021-22. The brought forward losses aggregated Rs. 6,04,94,915, comprising short-term capital loss of Rs. 4,99,17,386 and long-term capital loss of Rs. 1,05,77,529.
During scrutiny, the Assessing Officer observed that the losses relating to AY 2019-20 were not reflected in Schedule CFL of the return filed for AY 2020-21 and issued a show-cause notice proposing to disallow their set-off. The assessee explained that the omission resulted from an inadvertent human error. According to the assessee, the mistake remained unnoticed because a fresh loss had also arisen in AY 2020-21 and was subsequently corrected in the returns for AYs 2021-22 and 2022-23.
Procedural History
The Assessing Officer rejected the explanation, observing that the assessee had not filed a revised return under section 139(5) for AY 2020-21 and disallowed the claim of carry forward and set-off of brought forward losses. Penalty proceedings under section 270A were also initiated.
