SHRI SATISH MAYEKAR,MUMBAI vs. DCIT-28(3), MUMBAI, MUMBAI
What did the Tribunal hold?
The Tribunal held that the assessee should not be deprived of legitimate claims for set-off and carry forward of losses, especially when the time for filing a revised return had lapsed. The claims were genuine and not fictitious.
What were the facts?
The assessee sought to set off F&O losses and carry forward short-term capital losses in a revised computation of income during scrutiny assessment. The Assessing Officer and CIT(A) rejected these claims, stating a revised return under Section 139(5) was necessary.
What were the issues?
Whether losses can be set off or carried forward based on a revised computation of income filed during scrutiny, even after the due date for filing a revised return has passed.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(1)Show listHide list
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- Goetze (India) Ltd. v. CIT1,842 citing284 ITR 323 · 2006 · SC
Income Tax Appellate Tribunal, MUMBAI BENCH “E” MUMBAI
Before: SHRI SHAMIM YAHYA (ACCOUNTANTMEMBER) & SHRI PAVAN KUMAR GADALE
ORDER PER PAVAN KUMAR GADALE, J.M. The assessee has filed an appeal against the order of Commissioner of Income Tax (Appeals)-26, Mumbai passed u/s 143(3) and 250 of the Income Tax Act, 1961. The assessee has raised following grounds of appeal as under :
1. On the facts and circumstances of the case andin law,the teamed Commissioner of income Tax Appeals-26 (CIT(A)) erred in not allowing the set off of F&O loss of Rs.22,88,642/- against business income stating that the Appellant had not furnished revised return of Income under section 139(5) of the Act, without Shri Satish Mayekar 2 considering the facts that the Appellant had filed revised computation of income during the course of scrutiny assessment since due date of filing revised return of income was over.
2. On the facts and circumstances of the case andin law, the Ld. CIT(A) erred in not allowing carry forward of short term capital Loss of Rs.30,99,430/- to She subsequent years, stating that the Appellant had not furnished revised return of income under section 139(5) of the Act, without considering the facts that the Appellant had filed revised computation of income during the course of scrutiny assessment since due date of filing revised return of income was over. 3. On the facts and circumstances of the case andin law, the Ld. CIT(A) erred in not allowing the set off of F&O toss of Rs.22,88,642 against business income and carry forward of short term capital Loss of Rs.30.99,430 lo the subsequent years, relying on decision of Apex Court in case Of Goetze India Lid (SC) 2006 284 ITR 323 without considering the facts that !he said decision restrict the Assessing Officer to allow the claim made during the course of scrutiny assessment and not the Appellate authorities. 2. The brief facts of the case are that the assessee is an individual and engaged in the business of IOC Petrol & Diesel retail outlet and filed the return of income for the assessment year 2011-12 on 23.09.2011 declaring a total income of Rs.66,19,717/-. The return of income was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny and notice u/s 143(2) and u/s 142(1) of the Act along with the questionnaire was issued. In compliance, the Ld.AR of the assessee appeared from time to time and submit the details. The Assessing Officer has called for the information in respect of individual transaction statement of investments and the income offered for taxation and the sources of investments. The assessee has filed a letter dated 02.12.2013 explaining the nature of business and the personal income details, investment activities, interest income and other information.
Shri Satish Mayekar 3 2.1 The assessee has filed a revised computation of income excluding an amount of Rs.22,88,642/- being loss from the business income of proprietary concern and the revised income was offered at Rs.43,39,824/-. But the Assessing Officer observed that the revised statement filed by the assessee cannot be accepted as the assessee has to file revised return of income u/s 139(5) of the Act. The contentions of the assessee are that the loss of Rs.22,88,642/- was incurred and should be reduced from business income of Rs.66,28,466/- and the same was not accepted. Further the assessee claimed in the revised computation of income carried forward of short term capital loss of Rs.30,99,430/- for set off for future years. Similarly, the Assessing Officer called for bank accounts of the assessee and identified the credit of Rs.21,61,200/- and called for the explanations. Since, the assessee could not give proper explanations and has offered the income for taxation in the revised computation statement. Hence addition of Rs.21,61,200/- was treated as undisclosed income and finally the A.O. determined the total income of Rs.89,07,020/- and passed order u/s 143(3) of the Act dated 28.01.2014.
Aggrieved by the order, the assessee has filed an appeal before the CIT(A) on the disputed issue of setoff of loss and carry forward of short term capital loss. But the CIT(A) has confirmed the action of the Assessing Officer and dismissed the assessee’sappeal.
Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Tribunal. At the time of hearing, the Ld. AR submitted that CIT(A) and Assessing officer has erred in not considering the fact that the assessee is entitled to set off loss against the business income and
More judgments on Section 139(5)
- R S Industech Private Limited, Gandhidham vs ITO Ward-2, GandhidhamITA 843/RJT/2026[2018-19]Status: Disposed8 Oct 2026AY 2018-19
- Preeti Dubey, Jhansi vs Income Tax Officer, Ward-2(3)(5), JhansiITA 439/AGR/2026[2021-22]Status: Disposed6 Oct 2026AY 2021-22
- Preeti Dubey, Jhansi vs Income Tax Officer, Ward-2(3)(5), JhansiITA 438/AGR/2026[2020-21]Status: Disposed6 Oct 2026AY 2020-21
- Preeti Dubey, Jhansi vs Income Tax Officer, Ward-2(3)(5), JhansiITA 439/AGR/2026[2021-22]Status: Disposed6 Oct 2026AY 2021-22
- Preeti Dubey, Jhansi vs Income Tax Officer, Ward-2(3)(5), JhansiITA 438/AGR/2026[2020-21]Status: Disposed6 Oct 2026AY 2020-21
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