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Facts
The assessee filed an appeal for AY 2016-17 challenging the Ld. CIT(A)'s order which upheld the Assessing Officer's decision to restrict the set-off of brought forward losses by ₹2,62,657/- out of a total claim of ₹8,35,902/-, and to disallow a MAT credit of ₹12,94,923/- under Section 115JAA, citing lack of details. A delay of 63 days in filing the appeal was condoned.
Held
The Tribunal found no basis for restricting the brought forward losses and directed the Ld. AO to allow the full amount of ₹8,35,902/- to be set off. It also ruled that the MAT credit claim of ₹12,94,923/- was valid as per the Act and available in assessment records, directing the Ld. AO to allow it.
Key Issues
Whether the restriction of brought forward losses by the Assessing Officer and Ld. CIT(A) was justified; and whether the disallowance of MAT credit under Section 115JAA was valid due to alleged non-furnishing of details.
Sections Cited
143(1), 115JAA
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Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals) (hereinafter referred to as the “Ld. CIT(A)”] dated 22.10.2024 for the AY 2016-17.
At the outset, we observe that there is a delay of 63 days in filing the appeal by the assessee for which condonation petition along with affidavit was filed. After perusing the affidavit filed by the assessee and hearing the parties, we are inclined to condone the delay to be for bonafide and genuine reasons.
The assessee has brought forward losses of ₹8,35,902/-, which was claimed against the current year income. The fact is corroborated by the order passed u/s 143(1) dated 22.07.2017. However, the ld. AO while passing the assessment order restricted the said brought forward losses to the extent of ₹5,73,245/-, which was affirmed by the ld. CIT (A) on the ground that the assessee has not filed the details.
After hearing the rival contentions and perusing the materials available on record including the comprehensive details as regard to brought forward losses and its setting off, we find that the amount of brought forward losses for A.Y. 2016-17, was ₹8,35,902/-, which was also claimed by the assessee as set off against the current year income but the AO without any basis restricted the same. Since, there is no basis for restricting the brought forward losses to ₹5,73,245/-, we accordingly set aside the order of ld. CIT (A) and direct the ld. AO to allow the further set off of brought forward losses to the tune of ₹2,62,657/-.
The ground no. 1 of the assessee is allowed.
The issue raised in ground no.2, is against the order of ld. CIT (A) not allowing the MAT credit u/s 115JAA of the Act of ₹12,94,923/- on the ground that assessee has not furnished any details when all the information qua the said MAT credit was available in the assessment records. The order of the AO was upheld by the ld. CIT(A).
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 16.09.2025.