1 WP No.6831 of 10 mmj IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.6831 OF 2010 Sunanda Service & Trading Limited ..Petitioner Vs. Union of India & Ors. ..Respondents Mr. Nitesh Joshi i/b R.K.Associates for the Petitioner Mr. Vimal Gupta for the Respondents CORAM :- V.C.DAGA & R.M.SAVANT,JJ. DATE :- 11th OCTOBER ,2010 P.C. 1 Rule. 2 By consent of the parties Rule is made returnable forthwith. Heard finally. 3 This petition is directed against the notice issued under Section 148 of the Income Tax Act dated 28-8-2009, seeking re-opening of assessment orders for the Assessment years 2003-2004 and 2004-2005. 4 The re-opening was objected by the Petitioner. The objections taken before the Assessing Officer were rejected vide order dated 22-7-2010, wherein, it has been accepted that some portion of the loss for the Assessment year 1996-97 has been wrongly allowed and adjusted in the Assessment year 2002-2003. However, no step to rectify could be taken because of expiry of period of limitation. The Assessing Officer thought that this mistake, however, can be corrected by reopening the concluded assessment for the Assessment Year 2003-2004. This action of the Assessing Officer is a subject matter of challenge in this Petition. 2 WP No.6831 of 10 5. It is not in dispute that the assessment for the Assessment year 2002-2003 was completed under Section 143(3) vide assessment order dated 3-2-2005 and total income was determined as Rs.65,07,595. The said total income was set off in the assessment order as under: “Total income computed as per assessment Order Rs.64,07,595 Less: Set off of unabsorbed business loss b/f of A.Y.1996-997 Rs. 7,02,295 A.Y. 1997-98 Rs.57,05,300 ------------------ Rs.64,07,595 ----------------- Total Income Rs. Nil ======= It is, thus, clear from the above that the balance loss brought forward in the Assessment Year 1996-1997 has been set off in the Assessment Year of 2002-2003. If that be so, then as a consequence thereof, part of the carried forward loss of the Assessment Year 1996-1997 has been allowed to be set off against the income for the subsequent Assessment Year 2003-2004, with which no fault can be found. 6 In the circumstances, impugned order rejecting objections under the order impugned is liable to be quashed and set aside since there is no escapement of income for the Assessment year in question. The Petition is, thus allowed. Rule is accordingly made absolute with no order as to costs. (R.M.SAVANT,J.) (V.C.DAGA,J.)