ACIT, NEW DELHI vs. M/S. DLF COMMERCIAL PROJECT CORPORATION, NEW DELHI

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ITA 6773/DEL/2014Status: DisposedITAT Delhi21 September 2017AY 2011-122 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A)'s direction to the AO to recompute income by allowing set off of brought forward losses was correct. The AO is bound to pass consequential orders to give effect to appellate decisions, especially when they impact brought forward losses.

What were the facts?

The revenue appealed against the CIT(A)'s order allowing the assessee to set off brought forward losses from AY 2008-09 to 2010-11. The CIT(A) had directed the AO to recompute income after allowing these set offs.

What were the issues?

Whether the CIT(A) erred in allowing set off of brought forward losses when substantive appeals were pending. Whether the AO is obligated to pass consequential orders for set off of losses based on appellate decisions.

Which sections of the Income-tax Act were involved?

Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES ‘B’ DELHI

Before: SH. P.K.BANSAL & SH. AMIT SHUKLA

For Appellant: Ms. Rachna Singh, CIT DR
Hearing: 21.09.2017Pronounced: 21.09.2017

PER P.K.BANSAL, VICE PRESIDENT

1.

This appeal filed by the revenue against the order dated 29.09.2014 of the CIT(A)-XXVI, New Delhi relating to assessment year 2011-12 by taking the following effective ground of appeal:-

(i) “The CIT(A) has erred in allowing the appeal of the assessee regarding set off of brought forward losses for the A.Y. 2008-09 to 2010-11, as the substantive issue appeals are pending before various appellate authorities.”

2. We heard the rival submissions and carefully considered the same. We noted that before the Ld.CIT(A), the assessee has claimed setting off of brought forward losses for the AY 2008-09 to 2010-11. Ld.CIT(A) after giving the detailed finding under paras 4 & 5 of its order, has given the direction to the AO to re- compute the income of the assessee of the relevant assessment year u/s 154 of the Income Tax Act, 1961 (in short “Act”) after allowing set off of brought forward losses determined in consequent to the appellate order of the AY 2008-09 to 2010- 11 as per the law. In our opinion, there is no illegality or infirmity in the order of the Ld.CIT(A) while giving such direction infact whenever an appellate order is passed. The AO is bound to pass a consequential order after giving the appeal effect and after giving the appeal effect incase it affects the setting off of brought forward losses. Consequential order has to be passed in the succeeding assessment year. We, therefore, dismiss the appeal filed by the revenue.

3.

In the result, the appeal filed by the revenue stands dismissed.

The order is pronounced in the open court on 21 September, 2017.

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