1989 (6) TMI 15

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..... 03 ----------------- Total income 47,838 ----------------- The Income-tax Officer, however, arrived at the total income at Rs. 2,34,199 and also proposed to disallow the loss of Rs. 1,77,303 shown under the head "Income, profits and gains of business or profession". The Income-tax Officer felt that the loss in business (on sale of shares) claimed by the assessee should come under the head "Short-term capital loss" and, accordingly, the provisions of section 144B(1) of the Income-tax Act were attracted. The Income-tax Officer, therefore, submitted a draft assessment order on the assessee on March 18, 1978. In the normal course, the assessment would have been barred by limitation by March 31, 1978. The assessee, on April 5, 1978, stat .....

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..... arefully considered the objection raised by the learned representative and the submissions made by the Income-tax Officer. I find that the analysis made by the Income-tax Officer of the facts of the case was indeed pertinent to the issue. The decision of the Income-tax Officer was in fact prejudicial to the interests of the assessee, inasmuch as the claim of loss under the head "Business" amounting to more than rupees one lakh was not accepted by the Income-tax Officer. The Income-tax Officer was fully justified in sending a draft order to the assessee under section 144B, whereafter the assessment was done within thirty days. So, the objection of the learned representative was meritless and is, accordingly, dismissed." The assessee prefer .....

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..... e". In the context in which the word "income" appears, it cannot be interpreted as total income. Section 144B is to be applied only when there is a variation in the income. Total income will necessarily be computed only after variation is made by the Income-tax Officer in the course of the assessment. There is a significant distinction between "income" and "total income". The words used in this section can refer only to the income or loss returned under any particular source. The concept of total income is not embedded in section 144B(1). As indicated, the words used in the section refer only to the income or loss returned. It may be under any of the heads. When the Income-tax Officer does not allow the business loss to be determined whic .....

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