THE MOGAVEERA CO -OPERATIVE BANK LTD,MUMBAI V. ACIT, CIRCLE 1(3)(2), MUMBAI

ITA 5826/MUM/2024

AI Insights

The case involves The Mogaveera Co-operative Bank Limited appealing against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, which confirmed an addition of Rs. 3.66 crores made by the AO in a rectification order. The addition was based on the objection from the Revenue Audit, which claimed that the assessee was wrongly allowed a set-off of brought forward losses. The assessee contested the legal validity of the rectification but did not challenge the merits of the addition in the initial appeal. The Tribunal found that the CIT(A) did not address the merits and thus remanded the issue back to the AO for a detailed examination and correct application of the set-off of brought forward losses.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32180 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA
• Assessee Lawyers: KIRIT SANGHVI
• Keywords: Rectification of order

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “D” BENCH : MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 5826/Mum/2024 Assessment Year : 2011-12 The Mogaveera Co-operative Bank Limited, Mogaveera Bhawan, 5th Floor, MVM Educational Compl., Veera Desai Road, Andheri (W), Mumbai PAN : AAAAT3999G vs. ACIT, Circle-1(3)(2), Aayakar Bhavan, M.K. Road, Mumbai (Appellant) (Respondent) Assessee by : Shri Kirit Sanghvi Revenue by : Shri R.R. Makwana, Sr.DR Date of Hearing : 31-12-2024 Date of Pronouncement : 01-01-2025 ORDER PER B.R. BASKARAN, A.M : The assessee has filed this appeal challenging the order dt.24-09-2024 passed by the Ld. Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi [„Ld.CIT(A)‟] and it relates to AY. 2011-12. The assessee is aggrieved by the decision of the Ld.CIT(A) in confirming the addition of Rs.3.66 crores made by the AO in the rectification order dt. 28-03-2018 passed by the AO u/s.154 of the Income Tax Act, 1961 („the Act‟). 2 ITA No. 5826/Mum/2024 2. The Ld.AR submitted that the AO has passed the impugned rectification order as per the objection raised by the Revenue Audit, wherein the Revenue Audit has pointed out that the assessee has been wrongly allowed set-off of brought forward loss of Rs. 3.66 crores. The Ld.AR submitted that the assessee filed the appeal before Ld CIT(A) challenging the above said rectification order. However, the assessee challenged the same on a legal ground only and did not challenge it on merits of the addition. The said legal ground was rejected by the Ld.CIT(A) and he did not pass any order on merits. 3. The Ld.AR further submitted that the assessee is having sufficient amount of brought forward losses to be set off, which have not been properly considered by the Audit Party. The details of brought forward losses were submitted by the Ld.AR as under:- Accordingly, the Ld.AR prayed that the AO may be directed to allow the set-off of correct amount of brought forward losses. 3 ITA No. 5826/Mum/2024 4. We have heard the Ld.DR and perused the record. There should not be any dispute that the total income of the assessee should be computed in accordance with law. Hence, it is to be ensured by the AO that the total income is computed after allowing set off of correct amount of brought forward losses. Accordingly, having regard to the submissions made by the Ld.AR, we are of the view that this issue requires fresh examination. Since the Ld CIT(A) has not rendered his decision on merits and further, since the claim of the assessee requires verification, we restore this issue to the file of the AO with a direction to allow set off of correct amount of brought forward losses against the current year‟s income in accordance with law, while computing total income of the current year. 5. In the result, the appeal filed by the assessee is treated as allowed. Order pronounced in the open court on 01-01-2025 Sd/- Sd/- [SUNIL KUMAR SINGH] [B.R. BASKARAN] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 01-01-2025 TNMM 4 ITA No. 5826/Mum/2024 Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, “D” Bench, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai "