Itta/72/2014 Of The Commissioner Of Income Tax-Iv v. Nagarjuna Management Service (P) Ltd

THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 72 of 2014 DATED:20.2.2014 Between:The Commissioner of Income Tax-IV,Hyderabad. … AppellantAnd M/s. Nagarjuna Management Services (P) Ltd.,Hyderabad.….Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 72 of 2014 Judgment:(per the Hon’ble the Chief Justice Sri Kalyan JyotiSengupta) We have heard Mr. J.V. Prasad, learned counsel for theappellant and have gone through the impugned judgment and orderof the learned Tribunal dated. The appeal is sought to be preferred on the followingsuggested question of law. 1.Whether on the facts and in the circumstances of the case, theTribunal is correct in law, in holding that once loss is determined,in the earlier years, the assessing officer is duty bound to allowthe carry forward and set off of such loss in the subsequentyears, irrespective of the fact that nature of the loss of the earlieryears cannot be carried forward and set off as against thebusiness income of the subsequent year ?Tribunal is correct in law, in holding that once loss is determined,in the earlier years, the assessing officer is duty bound to allowthe carry forward and set off of such loss in the subsequentyears, irrespective of the fact that nature of the loss of the earlieryears cannot be carried forward and set off as against thebusiness income of the subsequent year ? After going through the judgment and order of the learnedTribunal and after hearing Mr. Prasad, learned counsel for theappellant, we are of the view that the impugned judgment andorder does not call for any interference as both the Tribunal andthe Commissioner of Income Tax (Appeals) have taken a correctlegal view that once the loss of the business is worked out and has been accepted by the Assessing Officer, it is his duty to carryforward the same in the subsequent assessment year and to allowsetting off of the loss of business income for the subsequentyears. This is the settled position of law and it has been followednot only by the learned Tribunal, but also by the Commissioner ofIncome Tax (Appeals). Hence, the appeal is dismissed. __________________ K.J. SENGUPTA, CJ _________________ SANJAY KUMAR, J 20.2.2014 PNB