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TMI Blog2020 (6) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue for assessment year 2013-14 against the orders of Commissioner of Income Tax (Appeals)-5, Ludhiana [hereinafter referred to as 'CIT (A)']. 2. First, we take up assessee's appeals for assessment years 2012- 13 & 2013-14, wherein, following grounds have been raised by the assessee :- ITA No. 663/Chd/2017 (A.Y. 2012-13):- 1. That the order of the learned Commissioner of Income Tax (Appeals)-5, Ludhiana dated 10.02.2017 is wrong against law and facts of the case. 2. That the learned Commissioner of Income Tax (Appeals)-5, Ludhiana erred in confirming not allowing to set off business losses with the surrendered/ disclosed business income of Rs. 9,10,00,000/-. 3. That the learned Commissioner of Income Tax (Appeals)-5, Ludhiana fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciate the facts and erred in confirming addition made by Ld. Assessing Officer of Rs. 2,43,107,918/- on substantative basis on account of the funds invested by M/s Sigma Fincap Private Limited in appellant company. 5. That the Ld. CIT(A)-5,Ludhiana failed to appreciate the facts and erred in confirming addition made by Ld. Assessing Officer of Rs. 3,47,03,234/- on account of alleged excess raw material consumption without any basis and adding the same to the returned income of the assessee. 6. That the Ld. CIT(A)-5,Ludhiana erred in confirming addition made by the Ld. Assessing Officer of Rs. 6,73,77,284/- on account of unexplained cash credits. 7. That the surrendered / disclosed covers the entries recorded in seized annexure. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y income referred to in section(s) 68/69/69A/69B/69C/69D of the Act, no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee under any provisions of the Act in computing the income referred to in section 115BBE(1) of the Act. 2. In this regard, it has been brought to the notice of the Central Board of Direct Taxes(the Board) that in assessments prior to assessment year 2017-18, while some of the Assessing Officers have allowed set off of losses against the additions made by them under Section(s) 68/69/69A/69B/69C/69D, in some cases, set off of losses against the additions made under Section 115BBE(1) of the Act have not been allowed. As the amendment inserting the words 'or set o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 115BBE of the Act till the assessment year 2016-17. 5. The contents of this Circular may be circulated widely for information of all stakeholders and departmental officers. The pending assessments and litigations on this issue may be handled accordingly. 6. Hindi version to follow. Sd/- RajarajeswawR.) Under Secretary (ITA.II), CBDT" 5. The assessment years involved in these appeals being 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest made by the Assessing Officer was justified. In view of this, ground No. 1 of the Departmental appeal stands allowed. 8. Ground No.2: Vide ground No. 2, the Revenue has agitated the action of the CIT( A) in deleting the addition of Rs. 1, 69, 36, 940/- made in the gross profit for alleged unaccounted sales and corresponding investment in purchases. The Assessing Officer noticed that during the course of search proceedings at the factory premises of the assessee company, the cash and stock as per books of account did not match with the actual cash and stock found on the date of search. The assessee was asked to explain the shortfall in cash amounting to Rs. l0, 66, 924/- and shortfall in stock amounting to Rs. 1, 58, 70, 016/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Raw Material shown by the assessee. AR argued that this amount is sufficient to cover the addition of Rs. 6, 73, 77,184/- in Ground No.5, Rs. 2, 75, 00, 000/- in Ground No. 6 and Rs. 1,69, 36, 940/- in Ground No.7 (total Rs. 11, 18, 14, 124/-). The AR argued that this has resulted into double addition. The facts of the case, the order passed by the A.O. and the arguments of the AR during the appellate proceedings have been considered. These issues were confronted to the Director of the assessee company in his statement recorded on 18. 09. 2012 and the relevant part of the statement is reproduced below: Q11. It is seen as per the trial balances submitted by you at the corporate office on 13 09.2012 that the stock in M/s Saber papers Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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