LAXMINARAYAN RAMSWARUP MANIYAR,JALGAON vs. CIRCLE-1, JALGAON, JALGAON

This appeal filed by the assessee is directed against the order dated 13.03.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2021-22.

The assessee has raised the following grounds of appeal :- “1) In the absence of conditions precedent for invoking provisions of S. 143(1)(a)(iii) of the Act, the learned CIT(A), NFAC has erred in confirming the adjustment of Rs. 8,03,196/- made by CPC u/s 143(1)(a)(iii) of the Act by denying the set off of brought forward unabsorbed depreciation of earlier years against current years income.

Being further aggrieved the assessee preferred an appeal before Ld. CIT(A)/NFAC. After considering the reply of the assessee, Ld. CIT(A)/NFAC partly allowed the appeal filed by the assessee and directed the Jurisdictional Assessing Officer (‘JAO’) to delete the addition of Rs.72,973/- made by the CPC. However, Ld. CIT(A)/NFAC dismissed the ground regarding set-off of brought forward unabsorbed depreciation loss claimed by the assessee against current years income under the head Income from House property & income from other sources..

Again being aggrieved with the above order of Ld. CIT(A)/NAFC, the assessee is in appeal before this Tribunal.

In this regard, we find that it is the claim of the assessee that the earlier years income tax returns were furnished u/s 139(1) of the Act and the unabsorbed depreciation loss was brought forward from these years which is required to be set-off against current year’s income under other heads. On the other hand, Ld. DR relied on the order passed by Ld. CIT(A)/NFAC and requested to confirm the same. Ld. DR also pointed out that the return for assessment year 2020-21 is not produced before the bench, however copy of other returns are furnished.

We have heard Ld. counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that the assessee was incurring business losses and unabsorbed depreciation loss was also there which was claimed during the period under consideration against the income disclosed under the head income from House property & also against income from other sources to the extent of Rs.8,03,196/-. However, CPC disallowed the claim of set-off of brought forward unabsorbed depreciation loss of Rs.8,03,196/- against the current year’s income by invoking the provisions of section 143(1)(a)(iii) and also made an addition of Rs.73,577/- to the income of the assessee and consequently an income of Rs.16,09,770/- was determined by CPC u/s 143(1) of the Act. Ld. CIT(A)/NFAC also dismissed the ground raised by the assessee with regard to set-off of unabsorbed depreciation loss against current years income under the other heads.

Considering the totality of the facts of the case and in view of arguments made by both the parties, we deem it appropriate to set- aside the order passed by Ld. CIT(A)/NFAC and remand the matter to the file of the Jurisdictional Assessing Officer with a direction to verify the claim made by the assessee and pass the assessment order afresh as per fact and law after providing reasonable opportunity of