Case Law Details
Dalmia Laminators Ltd. Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that when original return filed was defective and such defect is removed u/s. 139(9) of the Income Tax Act, the return filed u/s. 139(1) becomes a valid return from the date when it was originally filed. Accordingly, set off business income with carry forwarded business loss allowed.
Facts- AO framed the assessment order u/s 143(3) for the A.Y. 2017-18 of the Act. The assessee in its return of income disclosing total income of Rs. Nil and book profit of Rs. 5,54,72,136/-. In the order passed u/s 143(3) of the Act, AO assessed the income of the assessee at Rs. 16,43,788/- after making an additions/disallowances on account of u/s 36(1)(va) r.w.s. 2(24)(x) of Rs. 13,04,162/- and disallowance by way of penalty or fine for violation of any law of Rs. 3,39,626/-.
CIT(A) dismissed the appeal of the assessee by the sustaining the order of ld. AO. Being aggrieved, the present appeal is filed.
Conclusion- Hon’ble Supreme Court in the case of Prakash Cotton Mills Pvt. Ltd. vs CIT (201 ITR 684 (SC) has held that imposed of damages paid by the assessee under the Employees State Insurance Act, 1948 for delayed payment of contribution thereunder is allowable deduction u/s 37(1) of the Act.
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