SHRI AMBIKA METALIKS PVT. LTD., ,HOWRAH vs. ACIT, CENTRAL CIRCLE 3(4), , KOLKATA

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.