DCIT, Circle - 3(1), Kolkata , Kolkata V. M/s. BRG Iron and Steel Company Pvt. Ltd., , Kolkata

ITA 971/KOL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6564 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 19-11-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 10-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUPRIYO PAL
• Keywords: Rejection of books of accounts; Condonation of delay; Set aside
• Section: 142(1); 143(2); 72; 145(3); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C, BENCH KOLKATA BEFORE SHRI A. T. VARKEY, JM & DR. A.L. SAINI, AM ITA NO.971/KOL/2018 (ASSESSMENT YEAR: 2014-15) DCIT, CIRCLE-(1), KOLKATA VS. M/S. BRG IRON AND STEEL COMPANY PVT. LTD. SUIT NO.402,403,404, PLOT NO.5, BLOCK-DP, SALT LAKE SECTOR-5, GODREJ WATERSIDE BUILDING, KOL. ./ ./PAN/GIR NO. : AACCB2175L ( /APPELLANT ) .. ( / RESPONDENT ) APPELLANT BY : NONE RESPONDENT BY : SHRI SUPRIYO PAL, JCIT, SR. DR / DATE OF HEARING : 19/11/2019 /DATE OF PRONOUNCEMENT : 07/02/2020 / O R D E R PER DR. A. L. SAINI, AM: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, PERTAINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY LD. COMMISSIONER OF INCOME TAX(APPEALS)-24, KOLKATA IN APPEAL NO.1769/CIT(A)-24, KOL, DATED 19.01.2018 WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY ASSESSING OFFICER U/S 144 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT),DATED 28.12.2016. 2. THE APPEAL FILED BY THE REVENUE IN ITA NO.971/KOL/2018 FOR ASSESSMENT YEAR 2014-15 IS BARRED BY LIMITATION BY 38 DAYS. THE REVENUE FILED A PETITION FOR CONDONATION OF DELAY REQUESTING THE BENCH TO CONDONE THE DELAY. WE HAVE HEARD LD. DR FOR THE REVENUE AND HAVING REGARD TO THE REASONS GIVEN IN THE PETITION FOR CONDONATION OF DELAY, WE CONDONE THE DELAY AND ADMIT THE APPEAL FOR HEARING. 3. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE AS FOLLOWS: 01. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASES AND IN LAW, THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS. 20624601/- ON ACCOUNT OF ESTIMATED NET PROFIT? ITA NO.971/KOL/2018 M/S. BRG IRON AND STEEL COMPANY PVT. LTD. 2 02. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE ORDER OF THE LD. CIT(A) IS ERRONEOUS IN ALLOWING THE BROUGHT FORWARD LOSS ADJUSTMENT IGNORING THE SECTION 14 OF THE ACT. 03. THAT IT IS PRAYED TO SET ASIDE THE ORDER PASSED BY THE LD. CIT(A)-24 AND RESTORE THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER IN THIS CASE. 04. DEPARTMENT CRAVES LEAVE TO ADD, ALTER, OR MODIFY ANY GROUND OF APPEAL DURING THE COURSE OF HEARING. 4. BRIEF FACTS QUA THE ISSUE ARE THAT ASSESSEE FILED ITS RETURN OF INCOME ON 29.11.2014, DECLARING A LOSS OF RS.391,16,73,945/-. THE ASSESSEES CASE WAS SELECTED FOR SCRUTINY U/S 143(2) OF THE ACT. SINCE THE ASSESSEE DID NOT PRODUCE BOOKS OF ACCOUNTS, DETAILS OF PURCHASES, DETAILS OF SALES AND OTHER DOCUMENTS DURING THE ASSESSMENT STAGE THEREFORE THE ASSESSING OFFICER REJECTED THE BOOKS OF ACCOUNTS OF ASSESSEE AND ESTIMATED NET PROFIT @ 0.17% OF THE TURNOVER. THE FINDINGS AND OBSERVATION OF THE ASSESSING OFFICER ABOUT REJECTION OF BOOKS OF ACCOUNTS ARE REPRODUCED BELOW: 3.IT HAD BEEN NOTED THAT DURING THE RELEVANT YEAR UNDER SCRUTINY, IN RESPECT OF MANUFACTURING ACTIVITY OF THE ASSESSEE COMPANY, THE MATERIAL CONSUMED WAS RS.115 CRORE AND THE CORRESPONDING SALE WAS 110 CRORE, RESULTING IN A DIRECT LOSS IN MANUFACTURING ACTIVITY. IN CONTRAST, FOR THE FY 2012-13, THE MATERIAL CONSUMED WAS RS.221 CRORE AND THE CORRESPONDING SALE WAS 247 CRORE. THE PERCENTAGE OF GROSS PROFIT DURING THE RELEVANT FINANCIAL YEAR WAS (-)9.7% WHEREAS IN THE EARLIER YEAR OF FY 2012-13 THE GROSS PROFIT WAS 1.33%. FOR THE PURPOSE OF VERIFICATION OF THE SUDDEN LOSSES IN THE RELEVANT YEAR IN WHICH SHARE APPLICANTS HAVE POURED IN MONEY FOR A STAKE IN FORTUNES OF THE LOSS MAKING ASSESSEE COMPANY, CERTAIN DOCUMENTS AND EVIDENCES WERE SOUGHT BY ISSUE OF STATUTORY NOTICES. AMONG THEM WERE PARTICULARS OF PURCHASE AND SALE OF GOODS, AND THE OUTPUT OF MANUFACTURED PRODUCTS IN RELATION TO CONSUMPTION OF ELECTRICITY. THE PURCHASE AND SALE DETAILS WERE SOUGHT NUMEROUS TIMES THROUGH STATUTORY NOTICES INCLUDING SUMMONS TO DIRECTOR MR. SANDEEP GOYAL, SERVED THROUGH EMAIL AND IN PERSON, WHICH ARE SUMMARIZED BELOW: A) 142(1) DATE 8/8/2016: POINT NO. 15 CALLING FOR PURCHASE AND SALE DETAILS IN SPECIFIED FORMAT. B) LETTER DATE 6/9/2016: FOR COMPLIANCE OF 142(1) NOTICE DATE 8/8/2016. C) 131 DATE 3/10/2016: POINT NO.15 CALLING FOR PURCHASE AND SALE DETAILS AS IN 142(1) NOTICE D) 131 DATE 2/12/2016: POINT NO.3 CALLING FOR PURCHASE AND SALE DETAILS. IN RESPONSE TO SUMMONS DATE 3/10/2016, MR.SANDEEP GOYAL ATTENDED ON 20/10/2016 BUT WITHOUT THE EVIDENCES CALLED FOR IN THE SUMMONS. BY NOTE-SHEET RECORDING, 7 DAYS WERE ALLOWED FOR FURNISHING ALL DOCUMENTS AND EVIDENCES CALLED FOR, TO COMPLY WITH THE REQUIREMENTS OF THE NOTICES. WHEN NO DETAILED DATA FOR PURCHASES AND SALE AS SOUGHT WERE ITA NO.971/KOL/2018 M/S. BRG IRON AND STEEL COMPANY PVT. LTD. 3 FORTHCOMING, EVEN AFTER THE SCHEDULED DATE IN THE SUMMONS, A SECOND SUMMONS WAS ISSUED ON 2/12/2016 PROVIDING ANOTHER OPPORTUNITY TO THE DIRECTOR SANDEEP GOYAL TO PERSONALLY APPEAR AND PRODUCE THE DETAILS OF PURCHASES AND SALE AMONG OTHERS. EVEN THIS SUMMONS WAS IGNORED CITING MEDICAL GROUNDS TILL THIS DATE. TILL THE DATE OF THIS ORDER, THE PARTICULARS AS SOUGHT, PARTICULARLY REGARDING PURCHASE AND SALES, WERE NOT PROVIDED. PENALTY IS BEING INITIATED U/S 271(1)(B) FOR NON-COMPLIANCE OF NOTICE U/S 142(1) DATE 8/8/2016. AFTER COMPARING THE GROSS PROFIT RATIO OF THE EARLIER YEAR WITH THE RELEVANT PREVIOUS YEAR AND THE RELUCTANCE TO ABIDE BY THE REQUIREMENTS OF STATUTORY NOTICES BY THE DIRECTOR MR. SANDEEP GOYAL, IN THE CAPACITY AS THE PRINCIPAL OFFICER OF THE ASSESSEE COMPANY [BY ORDER PASSED U/S 2(35)] WHICH HAS PREVENTED ME TO VERIFY THE CLAIMS MADE IN THE RETURN FOR THE PURPOSE OF THIS ASSESSMENT, A LETTER WAS SENT TO THE DIRECTOR THROUGH EMAIL (AS GIVEN IN THE RETURN OF INCOME) PROPOSING REJECTION THE CLAIMS MADE IN THE AUDITED BOOKS OF ACCOUNTS AND RE-COMPUTATION OF THE INCOME OF THE ASSESSEE COMPANY BY DETERMINING PROFIT OF THE COMPANY AT THE RATE EQUIVALENT TO THE RATE OF GROSS PROFIT OF FY 2012-13 TO DETERMINE THE NET ASSESSED INCOME BY ADJUSTMENT OF OTHER CLAIMS AS MAY BE APPARENT FROM THE EVIDENCES GATHERED DURING THE PROCEEDINGS. THE NOTICE PROPOSING REJECTION OF BOOKS OF ACCOUNT WAS DULY SERVED ON THE ASSESSEE ON THE EMAIL ADDRESS GIVEN IN THE ITR (EMAIL:- [e-mail] ). SINCE NO REPLY WAS GIVEN TO MY PROPOSAL OF REJECTION OF THE BOOKS OF ACCOUNT OF THE ASSESSEE COMPANY WITHIN THE 3 DAYS' TIME ENDING ON 26/12/2016, I HEREBY REJECT THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND PROCEED TO MAKE THIS ASSESSMENT ACCORDINGLY. THE GROSS PROFIT AND NET PROFIT FOR THE RELEVANT FINANCIAL YEAR IS CALCULATED ON GP% AND NP% OF F.Y. 2012-13, WHICH IS 1.33% AND 0.17% RESPECTIVELY. PARTICULARS OF PROFIT FORMULA ADOPTED AS ASSESSED FOR F.Y. 2013-14 GROSS PROFIT 1.33% OF THE TURNOVER 1213,21,18,528X1.33% =1613,57,17,642 NET PROFIT 0.17% OF THE TURNOVER 1213,21,18,528 X 0.17% = 2,06,24,601 THEREFORE, THE NET PROFIT FOR THE RELEVANT AY 2014-15 IS ASSESSED AT RS.2,06,24,601. THE MANUFACTURING EXPENSE INCLUDED 'NET LOSS ON FOREIGN CURRENCY TRANSACTIONS AND TRANSLATIONS' FOR RS.15,25,69,000. ON BEING CALLED FOR, THE DOCUMENTS-IN SUPPORT OF THE TRANSACTIONS DUE TO WHICH THIS LOSS WAS CLAIMED, HAD BEEN FURNISHED. IT WAS SEEN THAT METAL SCRAP WAS IMPORTED FROM AGRAJ TRADELINKS FZE, KING EMPIRE GROUP LTD, INDICAA GROUP LIMITED AND GULF AGRO GENERAL TRADING LLC BY THE ASSESSEE COMPANY AS WELL AS OTHER COMPANIES FROM WHICH HIGH-SEAS PURCHASES BY ASSESSEE WERE CLAIMED. ALL IMPORT PURCHASES FROM THESE COMPANIES DATE BACK TO 2011 AND 2012 AS SEEN FROM THE COPY OF INVOICES FILED. THE LETTER OF CREDIT ISSUED BY OVERSEAS BANKS WAS LIQUIDATED WITHIN 180 DAYS WHICH DO NOT PERTAIN TO THE RELEVANT FINANCIAL YEAR. THERE WAS THEREFORE NO REASON FOR THE ASSESSEE TO ACCOUNT FOR THE LOSS DUE TO FOREIGN CURRENCY FLUCTUATION IN THE RELEVANT FINANCIAL YEAR. THE ASSESSEE WAS ASKED TO EXPLAIN WHY THE CLAIM OF LOSS SHOULD BE ALLOWED IN THE RELEVANT FINANCIAL YEAR TO WHICH NO REPLY WAS FORTHCOMING TILL THE DATE OF THIS ASSESSMENT. I AM THEREFORE INCLINED TO DISALLOW THE EXPENDITURE ON FOREIGN CURRENCY FLUCTUATION AND ADD BACK THE SUM OF RS.15,25,69,000 TO THE INCOME OF THE ASSESSEE OF THE RELEVANT PREVIOUS YEAR. BUT SINCE THE BOOKS OF ACCOUNT OF THE ASSESSEE HAD ALREADY BEEN REJECTED FOR ARRIVING AT THE NET ASSESSABLE PROFIT OF THE RELEVANT YEAR IN THE PRECEDING PARAGRAPH, NO FURTHER DISALLOWANCE OF EXPENDITURE, DEBITED IN THE PROFIT & LOSS ACCOUNT, IS NOT CALLED FOR IN THIS SITUATION. ITA NO.971/KOL/2018 M/S. BRG IRON AND STEEL COMPANY PVT. LTD. 4 5. AGGRIEVED BY THE ADDITION MADE BY THE ASSESSING OFFICER, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) WHO HAS HELD THAT ASSESSING OFFICER WAS NOT JUSTIFIED IN REJECTING BOOKS OF ACCOUNTS OF THE ASSESSEE COMPANY UNDER SECTION 145(3) OF THE ACT. THE LD CIT(A) NOTED THAT DURING THE COURSE OF THE APPELLATE PROCEEDINGS, THE ASSESSEE STATED THAT ALL THE DETAILS THAT WERE ASKED BY THE ASSESSING OFFICER, WERE SUBMITTED DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS. ON APPELLATE HEARING DATED 30.11.2017, THE ASSESSEE PRODUCED A CHART AND A NUMBER OF PAPER BOOKS WERE FILED GIVING EVIDENCES OF VARIOUS SUBMISSIONS MADE BY THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS. THEREFORE, LD CIT(A) NOTED THAT SINCE THE ASSESSEE SUBMITTED BOOKS OF ACCOUNTS, PURCHASE/SALE DETAILS AND OTHER WHATEVER DOCUMENTS ASKED BY ASSESSING OFFICER DURING THE ASSESSMENT STAGE THEREFORE ASSESSING OFFICER WAS NOT JUSTIFIED IN REJECTING BOOKS OF ACCOUNTS. THEREFORE, LD CIT(A) HAS DELETED THE ADDITION BASED ON NET PROFIT ESTIMATION TO THE TUNE OF RS.2,06,24,601/- OBSERVING THE FOLLOWING: 3 RD GROUND OF APPEAL : THE THIRD ISSUE IS WITH REGARD TO THE ADDITION OF RS.2,06,24,601/-. THE ASSESSING OFFICER STATED THAT THE MATERIALS CONSUMED BY THE ASSESSEE WAS RS.115 CRORES AND THE CORRESPONDING SALES WAS RS.110 CRORES, WHICH HAD LED TO A LOSS FROM THE MANUFACTURING ACTIVITY DURING THE CURRENT FINANCIAL YEAR 2013-14. THE AO COMPARED THIS RESULT WITH THAT OF THE FINANCIAL YEAR 2012-13 AND FOUND THAT THE ASSESSEE HAD EARNED A GROSS PROFIT OF 1.33% DURING THE IMMEDIATELY PREVIOUS ASSESSMENT YEAR. THE AO, IN HIS ORDER, STATED THAT HE HAD ASKED THE ASSESSEE TO SUBMIT PARTICULARS OF PURCHASE AND SALE OF MANUFACTURED GOODS, CONSUMPTION OF ELECTRICITY, ETC. BUT NO DETAILS WERE FURNISHED DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS. AS THE EVIDENCES WERE NOT PRODUCED, THE ASSESSING OFFICER REJECTED THE BOOKS OF ACCOUNTS AND CALCULATED THE GROSS PROFIT AND NET PROFIT OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2014-15, IN THE LINES OF THE GP & NP EARNED BY THE ASSESSEE DURING THE ASSESSMENT YEAR 2013-14. DURING THE COURSE OF THE APPELLATE PROCEEDINGS, THE ASSESSEE STATED THAT ALL THE DETAILS THAT WERE ASKED BY THE ASSESSING OFFICER, WERE SUBMITTED DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS. ON APPELLATE HEARING DATED 30.11.2017, THE ASSESSEE PRODUCED A CHART AND A NUMBER OF PAPER BOOKS WERE FILED GIVING EVIDENCES OF VARIOUS SUBMISSIONS MADE BY THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS. IN VOL. S-3 OF THE PAPER BOOK SUBMITTED, AT PAGE NO.57, THE ASSESSEE PRODUCED A COPY OF LETTER DATED 18.10.2016, SUBMITTED TO THE ASSESSING OFFICER, ITA NO.971/KOL/2018 M/S. BRG IRON AND STEEL COMPANY PVT. LTD. 5 WHEREIN THE DETAILS, AS REQUIRED BY THE A.O., WERE PRODUCED BY HAND DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS. PAGE NO.67 OF THE HANDBOOK CONTAINS THE SALES AND PURCHASES OF THE ASSESSEE, PAGE NO.68 CONTAINS THE MONTH-WISE DETAILS OF ELECTRICITY CONSUMED, WITH A CHART AND A COMPARISON OF PRODUCTION AND POWER CONSUMPTION WITH ANOTHER UNIT OF THE ASSESSEE. THESE WERE SUBMITTED AS ENCLOSURES TO THE LETTER DATED 18.10.2016. THE ASSESSEE ALSO PRODUCED PAPER BOOK NO. S-6, WHICH CONTAINS THE EXCISE RETURNS OF THE PRODUCTION, DETAILS OF INPUT-OUTPUT AND WORK-IN-PROGRESS. THIS WAS SENT BY SPEED POST AND A COPY OF THE SPEED POST RECEIPT DATED 13.12.2016 HAS BEEN PRODUCED BEFORE ME. HENCE, THESE DETAILS WERE SUBMITTED BEFORE THE ASSESSING OFFICER BY THE ASSESSEE. IN VIEW OF THIS, THE CONTENTION OF THE ASSESSING OFFICER THAT THE INFORMATION REQUIRED BY HIM, WERE NOT PRODUCED DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, ARE UNTENABLE AND NOT SUPPORTED BY THE FACTS, WHICH ARE ON RECORD. HENCE, THE ASSESSING OFFICER WAS NOT CORRECT IN REJECTING THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND HAS WRONGLY ESTIMATED THE INCOME OF THE ASSESSEE BASED ON ERRONEOUS PRESUMPTION. HENCE, THE ADDITION OF RS.2,06,24,601/- IS DELETED AND THIS GROUND OF APPEAL IS ALLOWED. 6. AGGRIEVED BY THE ORDER OF THE CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 7. THE LD. DR HAS REITERATED THE STAND TAKEN BY THE ASSESSING OFFICER WHICH WE HAVE ALREADY NOTED IN OUR EARLIER PARA AND IS NOT BEING REPEATED FOR THE SAKE OF BREVITY. 8. WE HEARD BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE SUBMISSION PUT FORTH ON BEHALF OF THE ASSESSEE ALONG WITH THE DOCUMENTS FURNISHED AND THE CASE LAWS RELIED UPON, AND PERUSED THE FACT OF THE CASE INCLUDING THE FINDINGS OF THE LD CIT(A) AND OTHER MATERIALS BROUGHT ON RECORD. AT THE TIME OF HEARING NONE APPEARED ON BEHALF OF ASSESSEE IN SPITE OF ISSUANCE OF NOTICE FOR HEARING MORE THAN ONE OCCASION AND LD. DEPARTMENTAL REPRESENTATIVE(DR), WAS PRESENT FOR THE APPELLANT REVENUE. WE NOTE DURING THE APPELLATE PROCEEDINGS ASSESSEE PRODUCED A CHART AND A NUMBER OF PAPER BOOKS WHICH WERE FILED BEFORE AO GIVING EVIDENCES OF VARIOUS SUBMISSIONS MADE BY THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS. IN VOL. S-3 OF THE PAPER BOOK SUBMITTED, AT PAGE NO.57, THE ASSESSEE PRODUCED A COPY OF LETTER DATED 18.10.2016, SUBMITTED TO THE ASSESSING OFFICER, WHEREIN THE DETAILS, AS REQUIRED BY THE A.O., WERE PRODUCED BY HAND DURING THE COURSE OF THE ITA NO.971/KOL/2018 M/S. BRG IRON AND STEEL COMPANY PVT. LTD. 6 ASSESSMENT PROCEEDINGS. PAGE NO.67 OF THE HANDBOOK CONTAINS THE SALES AND PURCHASES OF THE ASSESSEE, PAGE NO.68 CONTAINS THE MONTH-WISE DETAILS OF ELECTRICITY CONSUMED, WITH A CHART AND A COMPARISON OF PRODUCTION AND POWER CONSUMPTION WITH ANOTHER UNIT OF THE ASSESSEE. THESE WERE SUBMITTED AS ENCLOSURES TO THE LETTER DATED 18.10.2016. THE ASSESSEE ALSO PRODUCED PAPER BOOK NO. S-6, WHICH CONTAINS THE EXCISE RETURNS OF THE PRODUCTION, DETAILS OF INPUT- OUTPUT AND WORK-IN-PROGRESS. THIS WAS SENT BY SPEED POST AND A COPY OF THE SPEED POST RECEIPT DATED 13.12.2016 HAS BEEN PRODUCED BEFORE LD CIT(A). HENCE, THESE DETAILS WERE SUBMITTED BEFORE THE ASSESSING OFFICER BY THE ASSESSEE. IN VIEW OF THIS, THE CONTENTION OF THE ASSESSING OFFICER THAT THE INFORMATION REQUIRED BY HIM, WERE NOT PRODUCED DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, ARE UNTENABLE AND NOT SUPPORTED BY THE FACTS, WHICH ARE ON RECORD. HENCE, THE ASSESSING OFFICER WAS NOT CORRECT IN REJECTING THE BOOKS OF ACCOUNTS. THAT BEING SO, WE DECLINE TO INTERFERE WITH THE ORDER OF ID. C.I T.(A) IN DELETING THE AFORESAID ADDITIONS. HIS ORDER ON THIS ISSUE IS, THEREFORE, UPHELD AND THE GROUNDS OF APPEAL OF THE REVENUE ARE DISMISSED. THE SECOND GROUND RAISED BY THE REVENUE IS THAT THE ORDER OF THE LD. CIT(A) IS ERRONEOUS IN ALLOWING THE BROUGHT FORWARD LOSS ADJUSTMENT IGNORING THE SECTION 14 OF THE ACT. WE NOTE THAT LD CIT(A) DIRECTED THE AO TO ALLOW BROUGHT FORWARD LOSSES, AS PER THE PROVISIONS OF SECTION 72 OF THE ACT, THEREFORE WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD CIT(A) IN DIRECTING THE AO TO ALLOW BROUGHT FORWARD LOSSES, IN ACCORDANCE TO LAW. HENCE, WE CONFIRM THE ORDER OF LD CIT(A). 9. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 07/02/2020. SD/- (A. T. VARKEY) SD/- (A. L. SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA; DATED:07/02/2020 RS, SR.PS ITA NO.971/KOL/2018 M/S. BRG IRON AND STEEL COMPANY PVT. LTD. 7 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - DCIT, CIRCLE-(1), KOLKATA 2. / THE RESPONDENT.- M/S. BRG IRON AND STEEL COMPANY PVT. LTD. 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, KOLKATA 6. [ / GUARD FILE. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA .