Case Law Details
DCIT Vs Oasis Textiles Ltd. (ITAT Ahmedabad)
There is no dispute to the fact that the petition filed before the settlement commission disclosing an income of Rs.1,46,50,000/-was rejected. Once the petition got rejected, the only recourse available with the revenue to consider such amount disclosed in the settlement petition as the income under normal computation of income.
Indeed, the assessee disclosed the income declared in the settlement commission but has given the set off of the brought forward losses/unabsorbed depreciation against such income which eventually make the taxable income at Rs. Nil. Once income has been determined under normal computation of income then it implies that all the other provision including the provision of setting off loss/unabsorbed depreciation will equally be applicable as per the law. In other words, the assessee is entitled set off the brought forward losses/ unabsorbed depreciation against the income subject to the provisions of law.
It is also important to note that the assessee has filed the return of income belatedly for the year under consideration but there is no prohibition to adjust the brought forward losses against the income declared belatedly in the return of income under the provision of section 139(3) of the Act. At the time of hearing, the ld. DR has not brought anything on record contrary to the findings of the ld. CIT-A. In view of above, we do not find any infirmity in the order of the Ld.CIT(A). Hence, the ground of appeal of the Revenue is hereby dismissed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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