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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI PAVAN KUMAR GADALE, JM &
Appellant) : Respondent) Appellant/Assessee by : Shri Prateek Jain, AR : Shri Joginder Singh, Sr. DR Revenue/Respondent by : 16.11.2023 Date of Hearing Date of Pronouncement : 20.11.2023 O R D E R Per Padmavathy S, AM:
This appeal is against the order of the Commissioner of Income Tax (Appeal)-11, Pune [for short 'the CIT(A)'] dated 30.05.2023 for Assessment Year (AY) 2015-16.
The assessee is a partnership firm and is engaged in the business as builders and developers. The assessee for the year under consideration filed a Platinum Properties return of income on 29.09.2015 declaring total income of Rs. 26,86,590/-. After claiming a brought forward loss of Rs. 20,50,950/- of AY 2013-14. The case was selected for scrutiny and the statutory notices were duly served on the assessee. The Assessing Officer (AO) held that the brought forward loss pertaining to AY 2013-14 set off by the assessee against the income of the year under consideration cannot be allowed for the reason that in the assessment completed under section 143(3) for AY 2013-14 the loss was converted into taxable income. Accordingly, the AO added back the loss set off to the returned income of the assessee.
Aggrieved, the assessee preferred further appeal before the CIT(A). Before the CIT(A) the assessee submitted that the appeal for AY 2013-14 is pending before the CIT(A) and therefore appropriate direction may be issued to the AO. The CIT(A) after considering the submissions of the assessee directed the AO to allow the set off brought forward loss as per law, if the same is available for set off during the year after the appeal for AY 2013-14 is decided. The assessee is in appeal before the Tribunal against the order of the CIT(A).
The Ld. AR before us submitted that the appeal against the order of AO for AY 2013-14 still pending before the CIT(A) and therefore, the issue of set off the loss brought forward from AY 2013-14 against the income of the year under consideration should be left open and that the action of the AO denying the set off should not be upheld.
The ld. DR relied on the order of the lower authorities.
Platinum Properties 6. We have heard the parties and perused the material on record. We noticed that the CIT(A) has directed the AO to allow the set off brought forward loss based on the decision of the appeal for AY 2013-14. It is also noticed that the appeal for AY 2013-14 still pending before the CIT(A). Nothing is bought on record before us with the regard to the status of the appeal. Therefore, we are of the considered view that the issue should be remitted back to the AO to allow the brought forward loss in accordance with law based on the decision of the appeal pertaining to AY 2013-14 that would quantify the amount of brought forward loss that should be set off against the income of the year under consideration.
In the result, the appeal of assessee is allowed for statistical purposes.
Order pronounced in the open court on 20-11-2023.