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TMI Blog2022 (9) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. This Circular was brought out in view of amendment brought about by Finance Act, 2016 w.e.f 01.04.2017 which provides that no set off of any loss shall be given to assessee under the any of provision of the Act against the income as referred to in Clause A and B of sub-section (1) of Section 115BBE of the Act. Prior to that there was no provision existed in the Act and therefore it is permissible to set off of unabsorbed depreciation/losses against the said income. So in order to set the controversy at rest , a Circular No. 11/2019 dated 19.06.2019 was brought as the AOS were not allowing the set off. A perusal of the Circular, abundantly makes it clear that prior to AY 2017-18 the said set off of loss has to be allowed and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment u/s 153A/143(3) of the Act was framed vide order dated 31.12.2017 assessing income at Rs. 9,96,67,709/- making addition of share capital and share premium of Rs. 3 crores as unexplained cash credit u/s 68 of the Act. Thereafter, petition u/s 154 was moved by the assessee vide its application dated 28.02.2018 that unabsorbed depreciation of Rs. 9,82,55,803/- has not been given allowed to be set off against the income inadvertently. The AO after considering the application of the assessee passed an order u/s 154 of the Act on 30.05.2018 allowing the set off of unabsorbed depreciation and determined the total income at Rs. 28,13,810/-. Thereafter, the AO issued notice u/s 154 of the Act on the ground that as per Section 115BBE of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,96,67,709/-. Thereafter the assessee moved a rectification petition dated 28.02.2018 requesting the AO that unabsorbed depreciation of Rs. 9,82,55,803/- has not been allowed set off from the income assessed and the AO thereafter passed a rectification order dated 30.05.2018 allowing the set off of unabsorbed depreciation thereby determining the income of Rs. 28,13,810/-. But thereafter again the AO issued notice u/s 154 to withdraw the set off of unabsorbed depreciation and a rectification order was passed dated 09.07.2018 accordingly. The Ld. CIT(A) also confirmed the order of AO by ignoring the CBDT Circular No. 11/2019 dated 19.06.2019 which specifically issued in order to instruct the AOs to allow the set off of unabsorbed loss/depre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 and applies from assessment year 2017-18 onwards, conflicting views have been taken by the Assessing Officers in assessments for years prior to assessment year 2017-18. The matter has been referred to the Board so that a consistent approach is adopted by the Assessing Officers while applying provision of section 115BBE in assessments for period prior to the assessment year 2017-18. 3. The Board has examined the matter. The Circular No. 3/2017 of the Board dated 20th January, 2017 which contains Explanatory notes to the provisions of the Finance Act, 2016, at para 46.2, regarding amendment made in section 115BBE(2) of the Act mentions that currently there is uncertainty on the issue of set-off of losses against income referred to in s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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