Fresh losses can be claimed in Reassessment if not claimed in Orgional Income Tax Return

Facts of the Case 

There is no original assessment for the Assessment Year and only the an intimation under section 143(1) of the Act was issued to the assessee. Further to this it was claimed that the said intimation under section 143(1) of the Act is not an order of assessment .

In the return filed pursuant to notice u/s 148  ,the assessee claimed additional loss on sale of securities .

Without going into merits of the claim the AO , CIT(A) and ITAT did not grant relief with regard to the additional claim of loss made by the assessee on account of sale of securities on the ground that the aforesaid additional claim was not made in original assessment proceeding.

Held by High Court

When there is reassessement or assessment under section 147 of the income tax act  the original assessment proceeding get effaced and the Assessing Officer was required to consider the proceeding fresh and to consider the claim of the assessee.

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