The Tax Publishers2021 TaxPub(DT) 0781 (Del-Trib)

INCOME TAX ACT 1961

Section 72

Where assessee was contemplating to settle its litigation for assessment year 2013-14 and assessment year 2014-15 by opting for Vivad-se- Vishwas Scheme and where revenue does not dispute the acceptability of the principal in accordance with which the assessee seeks relief in this matter, AO was thus, directed to treat the closing stock of the assessment year 2013-14 as the opening stock for the assessment year 2014-15.

Loss - Set-off of brought forward loss - -

Assessee filed appeal against the order of AO making disallowance of forward losses based on the closing stock for the assessment year 2013-14, which would be the opening stock for the assessment year 2014-15. Held: Revenue does not dispute the acceptability of the principal in accordance with which the assessee seeks relief in this matter. The closing stock of the previous year has to be treated as the opening stock of the current year and there cannot be any quarrel to it. Because the assessee was playing this direction/clarification in order to get the matter stated under the Vivad-se-Vishwas Scheme, in the absence of any dispute as to the principle involved in this, there was no harm in issuing such clarification and accordingly AO was directed to treat the closing stock of the assessment year 2013-14 as the opening stock for the assessment year 2014-15.

REFERRED :

FAVOUR : In favour of assessee

A.Y. : 2014-15



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