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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first appeal dated 22.11.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 03.03.2021 passed by learned National e-assessment Centre, Delhi [“AO”] u/s 143(3) r.w.s. 143(3A) & 143(3B) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2018- 19, the assessee has filed this appeal on following grounds:
“1.On the facts and circumstances of the case and in law, the learned Commissioner of Income tax (Appeals) ("CIT(A)") erred in upholding the assessment proceedings without remanding the matter to the file of AO as the main matter is already set aside to the file of AO. The Appellant Page 1 of 4 AY 2018-19 prays that the said order be quashed or set aside and the additions thereby be deleted.
2. On the facts and circumstances of the case and in law the learned AO erred in not allowing the set off of brought forwarded losses amounting to Rs.28,84,030/-. The Appellant prays that the said brought forward of loss be allowed from the income of the year under consideration.”
The background facts leading to present appeal are such that the assessee, a partnership firm, filed its return of income of AY 2018-19 u/s 139 declaring a total income of Rs. Nil after set-off of brought forward loss of Rs. 51,90,463/- against income of current year. The case of assessee was selected under scrutiny and notices u/s 143(2)/142(1) were issued.
Ultimately, the AO completed assessment u/s 143(3). However, in the assessment so completed, the AO allowed set off of brought forward loss of Rs. 23,06,433/- only considering the status of immediately preceding AY 2017-18 in which the AO completed assessment u/s 144 and reduced the quantum of loss to be carried forward by assessee from Rs. 51,90,463/- to Rs. 23,06,433/-. Aggrieved, the assessee carried matter in first-appeal but, however, the CIT(A) did not grant any relief. Still aggrieved, the assessee has come in next appeal before us.
We have heard learned Representatives of both sides and perused the orders of lower authorities.
Page 2 of 4 has been drawn by Ld. AR for assessee, we find that the CIT(A) has noted thus:
7.1…..Further, the Appellant’s case for the AY 2017-18 was also in receipt of this office and the same has been set aside to the file of AO to decided afresh.
Thus, the assessee’s case of immediately preceding AY 2017-18 in which the AO reduced the quantum of loss to be carried forward by assessee from Rs. 51,90,463/- to Rs. 23,06,433/- has been remanded by CIT(A) to AO to decide afresh and as informed by Ld. AR, the proceeding of fresh assessment is pending before AO as on date. Faced with this situation, learned Representatives of both sides were ad idem that the present matter of AY 2018-19 should also be restored at the level of AO so that the AO shall consider the outcome of fresh assessment of AY 2017-18 and allow the correct amount of brought forward loss to assessee finalized in the order of fresh assessment. Accordingly, we remand this matter back to the file of AO in terms of consensus generated by learned Representatives. The AO is directed to allow correct amount of brought forward loss as would be finalized in order of fresh assessment.
Order pronounced in open court on 04/12/2025