Case Law Details
Birla Edutech Limited Vs ITO (ITAT Mumbai)
ITAT Mumbai held that set-off of losses when there is a change in shareholding involves interpretation of various provisions and laws and hence it is not a mistake apparent from record. Accordingly, rectification power under section 154 cannot be invoked.
Facts-
The assessee company incurred loss of Rs.3,05,15,064/- in earlier AY. 2010-11 (including unabsorbed depreciation Rs.58,02,628/-) out of which Rs.70,23,243/- was set off against the income earned for AY. 2012-13. The AO while passing the scrutiny assessment on 30.03.2015 u/s 143(3) of the Act allowed the claim of the set-off of losses of Rs.70,23,241/-.
However, later the AO invoked his power u/s 154 and has passed the order dated 28.07.2016 u/s 154 of the Act reversing his own action by disallowing the assessee’s claim of set off of losses on the reason that since there was major change in the shareholding pattern of the assessee company as per provision of Section 79 of the Act, the loss cannot be allowed to be set- off.
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