STEP IN ,KAMLA NEHRU MARG V. DCIT/ACIT 1(1), UJJAIN , UJJAIN

ITA 425/IND/2025

AI Insights

The case involves Step In, a partnership firm, which appealed against the order of the Commissioner of Income-Tax (Appeals) - NFAC, Delhi. The appeal was related to the assessment order passed by the National e-assessment Centre, Delhi for the Assessment Year 2018-19. The primary contention was the incorrect set-off of brought forward losses from the previous assessment year. The AO had allowed a reduced set-off of brought forward losses, which the CIT(A) upheld. The Income Tax Appellate Tribunal, Indore Bench, decided to remand the matter back to the AO, pending the outcome of a fresh assessment for AY 2017-18, to correctly determine the amount of brought forward loss to be set off.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792393 (ITAT-INDORE)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 05-05-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEE; WEFINDTHATTHECIT A HASNOTED; SHRIASHISHPORWAL
• Assessee Lawyers: SHRISOUMYABUMB
• Keywords: Set aside
• Section: 144; 143(3); 139

Judgement Text

"Page 1 of 4 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.425/Ind/2025 Assessment Year:2018-19 Step In 38/1, Kamla Nehru Marg, Ujjain बनाम/ Vs. DCIT/ACIT 1(1) Ujjain (Assessee/Appellant) (Revenue/Respondent) PAN: ACPFS8659E Assessee by Shri Soumya Bumb, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 01.12.2025 Date of Pronouncement 04.12.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first appeal dated 22.11.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 03.03.2021 passed by learned National e-assessment Centre, Delhi [“AO”] u/s 143(3) r.w.s. 143(3A) & 143(3B) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2018- 19, the assessee has filed this appeal on following grounds: “1.On the facts and circumstances of the case and in law, the learned Commissioner of Income tax (Appeals) (\"CIT(A)\") erred in upholding the assessment proceedings without remanding the matter to the file of AO as the main matter is already set aside to the file of AO. The Appellant Printed from counselvise.com Step In ITA No. 425/Ind/2025 – AY 2018-19 Page 2 of 4 prays that the said order be quashed or set aside and the additions thereby be deleted. 2. On the facts and circumstances of the case and in law the learned AO erred in not allowing the set off of brought forwarded losses amounting to Rs.28,84,030/-. The Appellant prays that the said brought forward of loss be allowed from the income of the year under consideration.” 2. The background facts leading to present appeal are such that the assessee, a partnership firm, filed its return of income of AY 2018-19 u/s 139 declaring a total income of Rs. Nil after set-off of brought forward loss of Rs. 51,90,463/- against income of current year. The case of assessee was selected under scrutiny and notices u/s 143(2)/142(1) were issued. Ultimately, the AO completed assessment u/s 143(3). However, in the assessment so completed, the AO allowed set off of brought forward loss of Rs. 23,06,433/- only considering the status of immediately preceding AY 2017-18 in which the AO completed assessment u/s 144 and reduced the quantum of loss to be carried forward by assessee from Rs. 51,90,463/- to Rs. 23,06,433/-. Aggrieved, the assessee carried matter in first-appeal but, however, the CIT(A) did not grant any relief. Still aggrieved, the assessee has come in next appeal before us. 3. We have heard learned Representatives of both sides and perused the orders of lower authorities. Printed from counselvise.com Step In ITA No. 425/Ind/2025 – AY 2018-19 Page 3 of 4 4. On perusal of Para No. 7.1 of impugned order to which our attention has been drawn by Ld. AR for assessee, we find that the CIT(A) has noted thus: “7.1…..Further, the Appellant’s case for the AY 2017-18 was also in receipt of this office and the same has been set aside to the file of AO to decided afresh.” 5. Thus, the assessee’s case of immediately preceding AY 2017-18 in which the AO reduced the quantum of loss to be carried forward by assessee from Rs. 51,90,463/- to Rs. 23,06,433/- has been remanded by CIT(A) to AO to decide afresh and as informed by Ld. AR, the proceeding of fresh assessment is pending before AO as on date. Faced with this situation, learned Representatives of both sides were ad idem that the present matter of AY 2018-19 should also be restored at the level of AO so that the AO shall consider the outcome of fresh assessment of AY 2017-18 and allow the correct amount of brought forward loss to assessee finalized in the order of fresh assessment. Accordingly, we remand this matter back to the file of AO in terms of consensus generated by learned Representatives. The AO is directed to allow correct amount of brought forward loss as would be finalized in order of fresh assessment. Printed from counselvise.com Step In ITA No. 425/Ind/2025 – AY 2018-19 Page 4 of 4 6. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 04/12/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 04/12/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order E COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "