Setoff of loss brought forward to be allowed even if the assessment for the AY for which the loss has been declared in is pending.

Last updated: 08 January 2021

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Quick Summary

The Income Tax Appellate Tribunal has ruled that a company can claim set off for losses brought forward, even if the assessment for the accounting year in which the loss was declared is still pending. This decision applies to multiple appeals from Shelf Drilling companies for the assessment years 2016-17 and 2017-18. The tribunal consolidated the appeals due to common issues and similar facts.

Court :
ITAT Mumbai

Brief :
These four appeals pertain to the same group of assessee, involve a common issue arising out of materially similar facts, and were heard together. As a matter of convenience, therefore, all the four appeals are being disposed of by this common order.

Citation :
ITA No. 1889 and 1891/Mum/2020

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI 'I' BENCH, MUMBAI

[Coram: Pramod Kumar (Vice President),
and Saktijit Dey (Judicial Member)]

ITA No. 1889 and 1891/Mum/2020
Assessment year: 2016-17 and 2017-18

Shelf Drilling Ron Tappmeyer Limited ……………….………Appellant
4th floor, Schindler House, Main Street,
Hiranandani Gardens, Powai, Mumbai 400076
[PAN: AASCS2715P]

Vs.

Deputy Commissioner of Income Tax
International Taxation 4(2)(1), Mumbai ……………………Respondent

ITA No. 1890 and 1892/Mum/2020
Assessment year: 2016-17 and 2017-18

Shelf Drill J T Angel Limited ……………….………Appellant
4th floor, Schindler House, Main Street,
Hiranandani Gardens, Powai, Mumbai 400076
[PAN: AASCS2719P]

Vs.

Deputy Commissioner of Income Tax
International Taxation 4(2)(1), Mumbai ……………………Respondent

Appearances by
Nitesh Joshi for the appellant
Vijaykumar G Subramanian for the respondent

Date of concluding the hearing : January 4, 2021
Date of pronouncement : January 5, 2021

ORDER

Per Pramod Kumar, VP:

1. These four appeals pertain to the same group of assessee, involve a common issue arising out of materially similar facts, and were heard together. As a matter of convenience, therefore, all the four appeals are being disposed of by this common order.

2. Learned representatives fairly agree that whatever we decide in the case of Shelf Drilling Ron Tappmeyer Limited will apply mutatis mutandis for the Shelf Drilling J T Angel Limited as well. All the material facts are stated to be similar and the difference is only in the figures. We, therefore, take up the case of Shelf Drilling Ron Tappmeyer Limited as the lead case, and will apply the conclusions arrived therein on the Shelf Drilling J T Angel Limited as well.

To know more in details find the attachment file

FAQ :

Yes, the Income Tax Appellate Tribunal has ruled that losses brought forward can be set off even if the assessment for the accounting year in which the loss was declared is still pending.

The ruling involved Shelf Drilling Ron Tappmeyer Limited and Shelf Drilling J T Angel Limited.

The appeals covered the assessment years 2016-17 and 2017-18.

The appeals were heard together because they pertained to the same group of assessees, involved a common issue, and arose from materially similar facts.