9911796707
TMI Blog2012 (8) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as per section 50 of the I.T. Act, 1961 in view of provisions of section 72 of the I.T. Act 1961. 2. On the facts and in the circumstances of the case and in law, the learned CIT (A) is justified in holding that unclaimed unsecured loans should be assessed as business income instead of Income from other sources . 2. Briefly stated, assessee is a wholesale distributor of pharmaceutical goods. The return of income was filed disclosing income of ₹ .12,30,400/-, whereas the income was assessed at ₹ .76,36,740/-. Assessee sold its business asset a shop for a consideration of ₹ .46.00 lakhs and after arriving at the capital gain under section 50. Assessee claimed set off of brought forward business loss of earlier yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... returned back as income from profit and gains of business or profession. The Revenue is aggrieved. 4. We have heard the learned DR and the learned Counsel in detail. 5. As far as Ground No.1 is concerned, the issue is decided by the Coordinate Bench in the case of Digital Electronics Ltd vs. Addl. CIT (supra) as under wherein it was held that Section 72 inter alia provides that where for any assessment year the net result of the computation under the head profits and gains of business or profession is a loss to assessee, not being a loss sustained in a speculation business and such loss cannot be or is not wholly set off against income under any head of income in accordance with the provisions of section 71 so much of the loss as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion carried on by assessee and assessable to tax for that assessment year , the same can be set off against loss under the head profits and gains of business or profession carried forward from earlier years. The income earned in the relevant year although not taxable as profits and gains from business or profession was an income in the nature of income of business nevertheless. Assessee was, therefore, indeed justified in claiming the set off of business losses against the income of capital gains assessable under s. 50 . 6. Respectfully following, we do not see any reason to interfere with the order of the CIT (A) as he has followed the above Coordinate Bench decision and directed AO to allow set off of business loss against the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee as an abundant precaution raised set off to capital gain income also as income u/s 41(1) was also agitated. Since the incomes being written off were now treated as business income, the carried forward losses may get absorbed by the income from business quantified as such, being less than amount considered as business income in ground no.2. Then issue in ground No1.becomes only academic in nature. These facts are clarified as Revenue has a tendency to agitate in higher forum even when facts do not require it to agitate further, like ground raised before us without examining the consequences of CIT(A) order. 9. In the result, appeal filed by the Revenue is dismissed. Order pronounced in the open court on 22nd August, 2012. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
