SENCO JEWELLERS(P) LTD,KOLKATA vs. DCIT, KOLKATA

order

: October 16th, 2023 ORDER

Per Rajesh Kumar, Accountant Member:

I.T.A. No.: 330/KOL/2023 Assessment Year: 2010-11 Senco Jewellers Pvt. Ltd. 2. One of the grounds of appeal raised by the assessee is against the order of Ld. CIT(A) upholding the intimation u/s 143(1) of the Act wherein the claim of setting off of brought forward losses of Rs. 5,34,851/- against the current year income has been rejected by the AO, CPC.

3. The facts in brief are that the assessee during the year derived income of Rs. 5,34,851/- from business and the same was set off against the brought forward losses thereby declaring NIL income during the year. However, while filing the return, due to some technical mistake, the said claim was not allowed by the AO, CPC in the intimation passed u/s 143(1) of the Act dated 18.05.2011. The Ld. CIT(A) dismissed the appeal of the assessee citing the technical reasons as stated in para 3 of the appellate order.

4. After hearing the rival contentions and perusing the material on record, we find that the claim of set off of brought forward losses of Rs. 5,34,851/- against the current year income from business is to be allowed to the assessee if the assessee has brought forward losses from the earlier year. We have examined the copies of returns filed by the assessee before us and find that the total brought forward losses from AY 2009-10 were to the tune of Rs. 19,06,032/- out of which the assessee has set off Rs. 5,34,851/- against the current year income and the remaining loss of Rs. 13,71,181/- was carried forward for future set off. The Ld. CIT(A) dismissed the appeal of the assessee by upholding the intimation/order passed u/s 143(1) of the Act thereby denying the assessee a legitimate claim of set off of brought forward losses I.T.A. No.: 330/KOL/2023 Assessment Year: 2010-11 Senco Jewellers Pvt. Ltd. against the current year income. We also note that Ld. CIT(A) in para 3 of the appellate order has stated that the appeal of the assessee has already been disposed off vide order dated 29.02.2016 which was claimed to have never been served upon the assessee while the appeal was still being shown to be pending in ITBA Portal which is very conflicting and contradictory itself. Accordingly, we set aside the order of Ld. CIT(A) and direct the AO to allow the claim of set off of Rs. 5,34,851/- against the current year income. It is pertinent to state that the observation of Ld. CIT(A) in para 3 of the appellate order that appeal of the assessee has already been disposed off vide order dated 29.02.2016 while the same continued to be shown as pending in the ITBA Portal is also expunged from the said order.