Ambika Metaliks Pvt. Ltd. Vs ACIT (ITAT Kolkata)
Technicalities Can’t Defeat Justice: Denial Without Basis Unjustified – Full Brought Forward Losses & MAT Credit Allowed
The appeal arose from the order of the CIT(A), dated 22.10.2024 & pertained to Assessment Year 2016-17. At the threshold, the appeal was filed with a delay of 63 days. Assessee produced an affidavit explaining genuine & bonafide reasons for the delay. Accepting the explanation, Tribunal condoned the delay to advance the cause of justice.
The first substantive issue related to the set-off of brought forward business losses. Assessee had claimed a total brought forward loss of ₹8,35,902, duly corroborated by the intimation u/s 143(1). However, while framing the assessment, AO restricted the set-off to ₹5,73,245, thereby disallowing ₹2,62,657 without assigning any cogent reason. This action was upheld by CIT(A) on the ground that Assessee did not furnish adequate details. On examination, Tribunal noted that the complete particulars were very much available in the assessment records & the restriction by AO was arbitrary. Accordingly, it directed AO to allow the full set-off of ₹8,35,902, including the disputed balance of ₹2,62,657.
The second issue pertained to MAT credit u/s 115JAA amounting to ₹12,94,923. AO denied the claim on the ground that the assessee had not filed details, & CIT(A) affirmed the denial. Tribunal, however, examined the ITRs of AYs 2012-13, 2014-15 & 2016-17 along with the records & found that the MAT credit was duly available & verifiable from assessment proceedings, including the intimation u/s 143(1). Holding that Assessee was legally entitled to such credit, Tribunal set aside the orders of the lower authorities & directed AO to allow the claim in full.
