Posco India Private Limited Vs DCIT (ITAT Cuttack)
ITAT Cuttack held that AO wrongly allowed the set off of brought forward loss and accordingly order of AO is erroneous and prejudicial to the interest of revenue. Accordingly, revisionary jurisdiction u/s. 263 of the Income Tax Act rightly invoked.
Facts- The assessee company engaged in manufacturing of steel rolled products and places. The return of income was filed on 15.02.2021 disclosing total income at Rs.15,50,04,960/- after claiming set off of brought forward business loss and depreciation of Rs.2,40,17,457/-. The assessment was completed vide order dated 20.09.2022 determining total income at Rs.25,83,26,990/- by making various additions and adjustment to the set off of brought forward business loss and depreciation claimed by the assessee. Thereafter PCIT-1 found the assessment order as erroneous and prejudicial to the interest of revenue and revised the same. Being aggrieved, the present appeal is filed.
Conclusion- Held that we are in agreement with the observations of the ld. Pr.CIT that the AO has wrongly allowed the set off of brought forward loss of Rs.1,47,26,426/- pertaining to A.Y.2018-2019 as claimed in the return of income. Therefore, the order of the AO is erroneous as well as prejudicial to the interest of revenue to extent of allowability of correct amount of brought forward loss and we are in agreement with ld. Pr.CIT on this issue.
