NCGB RETROFIT PVT. LTD.,KOLKATA vs. D.C.I.T., CIRCLE - 11(1), KOLKATA, KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA BEFORE SHRI SONJOY SARMA, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER Assessment Year: 2023-24 NCGB Retrofit Pvt. Ltd. DCIT, Circle-11(1), Kolkata 3A, St. George Terrace, Vs Aaykar Bhavan, P-7, Kolkata-700022, West Bengal Chowringhee Square, Kolkata-700069, West Bengal (Appellant) (Respondent) PAN: AAACN8752B Present for: Appellant by : Shri Anup Singh, AR Respondent by : Shri Supriya Pal, DR Date of Hearing : 24.09.2024 Date of Pronouncement : 06.12.2024 O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Ld. ADDL/JCIT(A)-12, Mumbai (hereinafter referred to as “the Ld. Addl/ Jt. CIT (A)” ) passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2023-24 dated 22.05.2024, which has been passed against the intimation u/s 143(1) of the Act issued by the CPC, Bengaluru.

“1. That on the facts and in the circumstances of the case and in law, the Learned Additional/Joint Commissioner of Income Tax (Appeals) (hereinafter referred to as the 'Ld. ADDL/JCIT(A)] erred in confirming the action of the AO-CPC in determining the total income at Rs. 43,88,083/- and the tax payable at Rs. 5,90,450/- without setting off losses pertaining to the earlier years amounting to Rs. 19,88,363/- 2. That on the facts and in the circumstances of the case and in law, the Ld. ADDL/JCIT(A) erred in confirming the action of the AO-CPC in determining the total income at Rs.43,88,083/-without setting off losses pertaining to the earlier years on the alleged ground that the appellant company had not filed return of income within the due date or extended due date for the assessment year 2023-24without appreciating that the date of filing of return of income for the assessment year 2023-24was irrelevant for setting off losses pertaining to the earlier years. NCGB Retrofit Pvt. Ltd.; A.Y. 2023-24 3. That on the facts and in the circumstances of the case and in law, the Ld. ADDL/JCIT(A) erred in confirming the action of the AO-CPC in determining the total income at Rs.43,88,083/- without setting off losses pertaining to the earlier years for a sum of Rs. 19,88,363/-, without appreciating that the aforesaid losses pertained to the assessment year 2021-22 and 2022-23 which had been carried forward by the appellant company in the return of income and the same had been duly accepted by the AO-CPC vide orders issued under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as the 'Act') for the aforesaid assessment years. 4. That on the facts and in the circumstances of the case and in law, the Ld. ADDL/JCIT(A) erred in confirming the action of the AO-CPC in charging interest under section 234B and 234C of the Act. 5. That the appellant craves leave to add to and/ or amend, alter, modify or rescind the grounds hereinabove before or at the time of hearing of appeal.” 3. The brief facts of the case are that the assessee NCGB Retrofit Private Limited (PAN AAACN87518) was having income under the head Profits and Gains of Business or Profession during the financial year 2022-23. The assessee filed its original return of income for Asst Year 2023-24 on 13th October 2023 showing total income of Rs. 23,99,720 after adjustment of brought forward business Loss amounting to Rs.19,88,363 in the aggregate. The return was revised on 24/11/2023, after some minor correction, but without changing the total income. The aforesaid brought forward losses pertained to AYs 2021-22 and 2022-23 for Rs. 16,44,243 and Rs. 3,44,120 respectively and both the returns had been filed on 31.12.2021 and 23.09.2022 respectively, which were within the due date/extended due date for the Assessment Years concerned. While processing the revised return for the A.Y. 2023- 24 of the assessee under Section 143(1) of the I.T. Act, 1961 on 22/12/2023, the Ld. AO did not consider the brought forward business losses of Rs.19,88,363 without giving any reason thereof. Aggrieved with the said intimation, the assessee filed an appeal before the Ld. Addl./Joint CIT(A), who noted in Para 3.1 of his order that the brought forward losses pertained to A.Y. 2021-22 and A.Y. 2022-23 for Rs. 16,44,243 and Rs.3,44,120 respectively NCGB Retrofit Pvt. Ltd.; A.Y. 2023-24 and both the returns had been filed within the extended due date. The Ld. AO also noted that the return for A.Y. 2023-24 had not been filed within the due date u/s 139(1) of the Act, as the same was filed on 24.11.2023 while the due date as well as the extended due date was 31.10.2023. It was also noted that a rectification order was passed by the CPC on 30.01.2024, which was in response to the application u/s 154 of the Act dated 23.12.2023 for rectification of the intimation u/s 143(1) of the Act. The Ld. Addl./Jt. CIT(A) also noted that the assessee had filed the revised ITR on 24.11.2023 which was almost one month after the original/extended due date of 31.10.2023, which demonstrates that the assessee had not filed the ITR in time and therefore, was not entitled to carry forward the losses since the return was not filed within the due date. The cases relied upon by the assessee did not hold good as the assessee had not filed the ITR of A.Y. 2023-24 within the due date and the appeal of the assessee was dismissed. Aggrieved, with the order of the Ld. Addl./Jt. CIT(A), the assessee has filed the appeal before the Tribunal.

Order pronounced in the Court on 6th December, 2024 at Kolkata. (SONJOY SARMA) ACCOUNTANT MEMBER Kolkata, Dated 06. 12.2024 *SS, Sr.Ps आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अिीिार्थी / The Appellant 1. प्रत्यर्थी / The Respondent 2. संबंतिि आयकर आयुक्त / Concerned Pr. CIT 3. आयकर आयुक्त ) ( 4. अिीि / The CIT(A)- तिभागीय प्रतितिति आयकर अिीिीय अतिकरण कोिकािा/DR,ITAT, Kolkata, 5. , , गार्ड फाईि / Guard file. 6. आदेशािुसार/ BY ORDER,Sr. PS/