M/S. TIRUPATI SPONGE & STEEL,KOLKATA vs. ITO, WARD-3(1), ASANSOL, ASANSOL

The only issue that arises for our consideration, is the claim of the assessee that, the business loss quantified, consequent to the order of the Commissioner of Income Tax (Appeals) for A.Y.2007-08, by the AO, in his order giving effect to the appellate order passed u/s 250 r.w.s. 143(3) of the Income Tax Act, 1961 (the ‘Act) was Rs.1,47,03,275/-. It is the case of the assessee that it is entitled to carry forward this loss and set off the same against the income of the assessment year 2008-09 as well as income of the A.Y.2009-10. The ld. Departmental Representative does not have the details but agreed that the assessee is entitled to claim setting off of brought forward loss against the current income.

In view of the above discussion we direct the AO to grant deduction of brought forward business loss of the A.Y.2007-08 in accordance with law. The AO shall verify M/s Tirupati Sponge & Steel A.Y.2009-10 2 the facts and figures submitted by the assessee, and dispose of the case in accordance with law.

In the result the appeal of the assessee is allowed for statistical purposes.