9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 575 - AT - Income TaxSet off of current year business loss from the additional/Deemed income - Scope of amendment brought to section 115BBE - assessee had surrendered an additional income on account of difference in cash in hand, unaccounted investment in building unaccounted amounts receivable) - HELD THAT - Referring to Circular No. 11 of 2019 of the CBDT, has clarified the matter that the assessee will be entitled to set off of loss against income determine u/s 115BBE of the Act till assessment year 2016-17. The assessment year under consideration being assessment year 2014-15, the assessee is accordingly entitled to the set off of the current year losses against the deemed income. Appeal of the assessee stands allowed.
Issues:
1. Allowability of set off of current year depreciation and business losses against deemed income u/s 69 of the Act. 2. Applicability of provisions of sec 115BBE as applicable to AY 2014-15. Analysis: 1. The assessee declared additional income of ?2,00,00,000 during a survey, claiming set off of depreciation and business losses against it. The Assessing Officer disallowed the set off, relying on a judicial pronouncement. The CIT(A) upheld this decision, citing a clarificatory amendment to sec 115BBE applicable retrospectively. However, the assessee referred to Circular No. 11 of 2019, which clarified that set off of losses against income under sec 115BBE was allowed till AY 2016-17. As the assessment year in question was 2014-15, the assessee was entitled to the set off. The Tribunal allowed the appeal, granting the set off of current year losses against the deemed income. 2. The issue of applicability of provisions of sec 115BBE to AY 2014-15 was resolved in favor of the assessee based on the clarification provided in Circular No. 11 of 2019 by the CBDT. The Tribunal held that the assessee was entitled to claim set off of loss against income determined under sec 115BBE until AY 2016-17, allowing the appeal and granting the set off of current year losses against the deemed income.
|
