Shri Chandrashekar Hemanth Vs. The Income Tax Officer, Ward – 7(2)(4), Bangalore

Parties Involved

Facts Summary

The assessee, Shri Chandrashekar Hemanth, filed his return of income for the assessment year 2017-18 declaring a total income of Rs. 4,64,440/-. His case was selected for scrutiny, and he suo moto offered a sum of Rs. 3 Lakhs as unexplained money. The Assessing Officer (AO) disallowed the set off of brought forward losses of Rs. 45,18,838/-, alleging that the assessee had filed his return of income for the assessment year 2016-17 belatedly. The assessee contended that the losses were related to the assessment years 2012-13 and 2013-14, for which the returns were filed in time. The Commissioner of Income Tax (Appeals) (CIT(A)) upheld the AO's order, leading the assessee to appeal before the Tribunal.…

Legal Issues

• 1. Whether the AO erred in disallowing the set off of brought forward losses without issuing a show cause notice.
• 2. Whether the losses claimed for set-off pertain to the assessment years 2012-13 and 2013-14, for which the returns were filed in time.
• 3. Whether the assessee is entitled to carry forward and set off the losses incurred during the assessment years 2012-13 and 2013-14 against the income of the assessment year 2017-18.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• DCIT NON CIRCLE II MADURAI VS VIRUDHUNAGAR DISTRICT CENTRAL CO-OPERATIVE BANK LIMITED

• ITA No.1130/Kol/2025

• M/s.Ashiana Manufacturing India Ltd vs. DCIT

  Delhi Bench benchAY 2014-15Allowed

• Bacardi India Private Limited Vs. Assistant Director of Income Tax, CPC.

  Delhi Bench ‘A’ benchAY 2020-21Partly Allowed

• East Delhi Waste Processing Company Pvt. Ltd. Vs. DCIT

  Delhi Bench benchAY 2021-22Partly Allowed

• Sungroup Enterprises (P) Ltd. vs. DCIT, Circle 24 (2)