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2019 (9) TMI 444 - ITAT LUCKNOWRectification of mistake u/s 154 - brought forward losses set off against the speculative business income - HELD THAT:- Gross total income of the assessee company does not consist mainly of income chargeable as “Interest on securities" "Income from house property", "Capital gains" and "Income from other sources" and its principal business is not the business of banking or of granting of loans or advances. The assessee company is a Limited Company engaged in the business of purchase and sales of shares during the year under consideration and has also earned income from Rent and Dividend, etc. The assessee is a non-banking financial company (NBFC) and may be categorized as an Investment Company. The losses of earlier years, i.e., assessment years 2008-09 and 2009-10 were claimed by the assessee to be set off against the profit of the year under consideration for the reason that there was no change in the nature of the business of the assessee company. The set off of loss claimed by the assessee was allowed by the AO vide order passed u/s.143(3) of the Act, in accordance with the Explanation to section 73 as per which, the business of the assessee company is deemed to be a speculative business. To reiterate, in the earlier two years, the business of the assessee was a speculative business. Ergo, the business of the assessee company in the year under consideration remains the same as that in the earlier two assessment years. We hold that there was no mistake apparent from the record in the original assessment order dated 16/3/2016 and the brought forward losses had correctly been set off against the speculative business income for the year under consideration.
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