This article discusses the appeal by Ceres Estate Limited against the order of the CIT (Appeals)/National Faceless Appeal Centre, Delhi, for the assessment year 2020-21, focusing on the denial of a set-off of brought forward losses against current year’s business income.
The case originated from the denial by the CPC during the processing of the return under section 143(1) of the Income Tax Act, 1961. The assessee’s claim for a set-off of business losses of Rs.15,29,548 against business income was denied.
The CIT (Appeals) dismissed the appeal due to lack of specific year-wise details for the carry forward losses. On appeal, the Tribunal noted the absence of such details during the appeal proceedings but acknowledged that they were not requested by the CIT (Appeals).
The Income Tax Appellate Tribunal restored the matter to the file of the Assessing Officer to decide afresh in accordance with the law, instructing the Assessing Officer to provide an adequate opportunity for the assessee to present the necessary details in support of its claim.
The Tribunal’s decision to restore the case allows the assessee another opportunity to substantiate its claim for the set-off of brought forward losses, highlighting the importance of providing complete and specific details in such cases.
Ceres Estate Limited vs. ITO, Ward-5(1), Delhi – ITA 2521/DEL/2022
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform