SWOSTI EDUCATIONAL FOUNDATION,BHUBANESWAR vs. ITO (EXEMPTION) BHUBANESWAR, BHUBANESWAR

PDF · subscribers
ITA 446/CTK/2025Status: DisposedITAT Cuttack03 December 2025AY 2016-17Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAJESH KUMAR (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the assessee had filed its return for assessment year 2015-16 and an assessment order u/s.143(3) was passed. The AO had incorrectly stated that the return for the earlier year was not filed, leading to the disallowance of carry forward of loss.

What were the facts?

The assessee filed an appeal against the order of the Ld.CIT(A) for the assessment year 2016-2017. The AO questioned unsecured loans of Rs. 67,57,978/- transferred to unsecured loans, which represented a loan from Shree J.K. Mohanty.

What were the issues?

Whether the addition of Rs. 67 lakhs relates to the impugned assessment year, given the AO's incorrect assumption about the filing of the return for the earlier year.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

Hearing: 03/12/2025Pronounced: 03/12/2025

(नििाारण वर्ा / Assessment Year : 2016-2017) Swosti Educational Foundation, Vs ITO (Exemption) Bhubaneswar P-1, Swosti Premium, Jayadev Vihar, Chandrasekharpur Bhubaneswar-751013 PAN No. : AAJTS 0672 H (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. नििााररती की ओर से /Assessee by : Shri K.K.Bal, Advocate राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 03/12/2025 घोषणा की तारीख/Date of Pronouncement : 03/12/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld.CIT(A), National Faceless Appeal Centre(NFAC), Delhi, dated 27.06.2025 passed in Appeal No.CIT(A), Bhubaneswar-3/10139/2018-19 for the assessment year 2016-2017.

2.

It was submitted by the ld.AR that the return of income for the impugned assessment year was filed on 31/03/2018. It was the submission that in the course of assessment, more specifically in para 13 of the assessment order, the AO has questioned the unsecured loans included in the capital fund now transferred to the unsecured loan which represented the loan form Shree J.K.Mohanty to an extent of 2 Rs.67,57,978/-. It was the submission that in para 13, the AO has recorded that the assessee has not filed its return of income for the assessment year 2015-2016. It was the submission that these amounts are carry forward amounts and the return for the assessment year 2015- 16 have also been filed as early as on 10/03/2016 and the assessment order u/s.143(3) of the Act has also been passed in the case of the assessee for the assessment year 2015-16 on 30/10/2017. It was the submission that this amount has also been shown in the account of the earlier year which has been shown at page 64 of the paper book, which reads as follows:-

3 3. It was the submission that the issue may be restored to the file of the AO with the direction to verify the assessment order and the records for the earlier assessment years to adjudicate whether this addition of Rs.67 lakhs relates to the impugned assessment year not.

4.

In reply, the Ld.Sr. DR submitted that he has no objection if the issue is restored to the file of the AO to examine whether the return has been filed for the earlier assessment year and whether this amount has been disclosed in the earlier year.

5.

We have considered the rival submissions. A perusal of the facts shows that the assessee has filed his return of income for the assessment year 2015-16 and there is also an assessment order u/s.143(3) of the Act for the assessment year 2015-16. In para 13 of the assessment order, Ld.AO has taken a stand that the return for the earlier year has not been filed and, therefore, he has not accepted the claim of the carry forward of the loss from the earlier year. This being so in the interest of justice, this issue is restored to the file of the AO to readjudicate the issue after verifying the return of the assessee filed for the assessment year 2015-16.

6.

In result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 03/12/2025. (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 03/12/2025 Prakash Kumar Mishra, Sr.P.S.

Recent GST High Court judgments

Search GST case law →