1996 (9) TMI 70

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..... ncome from fixed deposits receipt, was assessable under the head ' Business ' on accrual basis ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law to hold that the findings of the Commissioner of Income-tax (Appeals) that interest on fixed deposits receipts was assessable under the head ' Other sources ' is not correct ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the interest income amounting to Rs. 71,013 taxed on accrual basis and subsequently claimed as deduction is admissible under law ? " The assessee is a registered firm which derives its income from manufacture and sale of bidis. The assessee earned interest from bank de .....

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..... e question for consideration is whether the loss of income caused to the assessee on account of premature encashment of the fixed deposit receipts can be made good under the provisions of the Act or not. Though no provision of law was referred by the Tribunal, nor was it brought to the notice of the Tribunal, Shri Nema, learned counsel for the assessee, has invited our attention to sections 70, 71, 72 onwards. Section 70 deals with the set-off of loss from one source against income from another source under the same head of income. Section 71 deals with set-off of loss from one head against income from another. Section 72 deals with the carry forward and set-off of business losses. The Tribunal, of course, did not make a specific referenc .....

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..... der any other head. (2) Where in respect of any assessment year, the net result of the computation under any head of income, other than ' Capital gains ', is a loss and the assessee has income assessable under the head ' Capital gains ', such loss may, subject to the provisions of this Chapter, be set off against his income, if any, assessable for that assessment year under any head of income including the head ' Capital gains ' (whether relating to short term capital assets or any other capital assets). (3) Where in respect of any assessment year, the net result of the computation under the head ' Capital gains ' is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to have .....

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