Case Law Details
DCIT Vs Brahmos Aerospace (Thiruvananthapuram) Ltd. (ITAT Cochin)
Facts- The AO while giving effect to the ITAT’s order dt.29.03.2012, passed an order dated 12-03-2013 and again did not allow the carry forward of business loss to the tune of Rs. 1,34,50,050/- as the assessee has not filed the revised return of income. However, loss on account of depreciation, to the tune of Rs.1,62,04,983/- was allowed by the AO , in the second round of litigation . The matter again travelled to Ld.CIT(A) at the behest of the assessee, who was pleased to hold vide appellate order dated 10.10.2019 in second round of litigation , that the assessee has filed return of income in time and hence the assessee will be eligible to carry forward business loss also. The Ld.CIT(A) observed that the ITAT directed the AO to assess the loss of the assessee on the basis of the audited financial statements and other material in accordance with law. The assessee having filed the return of income within prescribed time although on the basis of the unaudited accounts ,and the directions of the tribunal in the first round, was to allow loss on the basis of audited accounts . The ld. CIT(A)held that the AO has exceeded his mandate to determine the loss as per the audited books of accounts and the action of the AO in denying the carry forward of loss is without any basis. Aggrieved, the Revenue has come in appeal before the tribunal.
Conclusion- Held that the carry forward of business loss cannot be denied to the assessee merely on the ground that the statutory audit/tax audit was not completed within the prescribed period.
Section 80 stipulates that return of income is to be filed within the prescribed time, which assesse did complied with although provisional financial statements were filed along with return of income. Moreover, the tribunal in first round of litigation has directed AO to assess income/ loss of the assesse on the basis of audited financial accounts and other materials in accordance with law .Thus, under the above facts and circumstances, we are of the considered view, that there is no justification for denying the carry forward of the business loss for the year under consideration based on the audited financial statements keeping in view applicable and relevant provisions of the 1961 Act for computing such loss, and we confirm the appellate order of the ld. CIT(A).
FULL TEXT OF THE ORDER OF ITAT COCHIN
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