Chandrashekar Hemanth Vs ITO (ITAT Bangalore)
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal for statistical purposes against the order of the National Faceless Appeal Centre (NFAC) dated 19.07.2024 for Assessment Year (AY) 2017-18. The assessee challenged, among other issues, the disallowance of the set-off of brought forward business losses, the assessment being beyond the scope of limited scrutiny, and the alleged denial of an opportunity of hearing before the disallowance.
The assessee, an individual carrying on the business of running a hotel under the name “Pleasant Stay Inn”, filed the return of income declaring total income of ₹4,64,440. The case was selected for scrutiny under CASS to verify substantial cash deposits in the bank account. During the assessment proceedings, the assessee voluntarily offered ₹3,00,000 as unexplained money under Section 69A. The Assessing Officer (AO), however, disallowed the set-off of brought forward losses amounting to ₹45,18,838 on the ground that the return for AY 2016-17 had been filed belatedly and, therefore, the losses were not eligible for carry forward under Section 80. The Commissioner (Appeals) upheld the disallowance, observing that the losses could not be carried forward because the return for AY 2016-17 was filed beyond the prescribed time.
