AO Wrongly allowed Posco India’s set-off of Brought-Forward Loss of ?1.4 cr: ITAT directs Disallowance, Citing Adjustments made in Previous Years

The Income Tax Appellate Tribunal (ITAT) directed the disallowance of a set-off of brought forward loss of Rs.1.4 crores for POSCO India, citing adjustments made in previous years. The Assessing Officer (AO) had wrongly allowed the set-off, leading to an incorrect tax assessment. The ITAT found that the adjustments made in previous years were not properly considered and directed the AO to disallow the set-off. This ruling emphasizes the need for accurate consideration of past adjustments in tax assessments.