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TMI Blog2024 (10) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... business loss for the purposes of Sections 71 and 72, it can be set off only against profits or gains of any business or profession and it cannot be set off against income from any other sources. Though the learned counsel for the petitioner took considerable efforts to establish that Section 72 is always subject to the provisions of Section 71 going by the express provisions in sub-section (2) of Section 32 permitting the carry forward of depreciation allowance subject to the provisions of Section 72 of the 1961 Act, we find no merit in the said contention taken by the learned counsel for the petitioner. There is absolutely no error in Ext.P6 warranting the exercise of jurisdiction under Article 226 of the Constitution of India. WP Dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order and to reconsider Ext: P3 rectification petition filed against Ext-P2 intimation by considering the grounds in Ext-P4 petition after affording a personnel hearing through VC. iii. direct the 2nd respondent to quash the Ext-P2 intimation u/s.143(1) and allow the claim of the petitioner in accordance with law by considering the documents available on the portal. iv. Issue any other appropriate writ, direction or order found fit and proper by this Honourable Court on the facts and in the circumstances of the case . 3. The learned counsel appearing for the petitioner refers to the provisions of Section 32 (2) of the 1961 Act to contend that where in the assessment of an assessee, full effect cannot be given to any allowance under sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is absolutely no mistake in the order passed under Section 154 of the 1961 Act and the petitioner has not made out any ground to set aside the said order. 6. The learned counsel appearing for the petitioner, in reply, would refer to the provisions of Section 71 (2) and (2A) of the 1961 Act to contend that where there is any loss arising out of business or profession including depreciation allowance the same can be set off against any other head of income and the provisions of Section 72 of the 1961 Act are always subject to the provisions of Section 71 of the 1961 Act. 7. Having heard the learned counsel appearing for the petitioner and the learned Senior Standing Counsel appearing for the Income Tax Department, I am of the view that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of Section 72 of the 1961 Act read thus: 72. Carry forward and set off of business losses. (1) 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 the 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 has not been so set off or, where he has no income under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and (i) it shall be set off against the profits and gains, if any, of any business or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss referred to in the proviso to sub-section (1) of this section shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed . 10. It is clear from the reading of the provisions of Section 72 of the 1961 Act that even if the depreciation allowance under Section 32 of the 1961 Act, which was carried forward in terms of sub-section (2) of Section 32, is deemed to be a business loss for the purposes of Sections 71 and 72, it can be set off only against profits or gains of any business or profession and it cannot be set off against income from any other sources. 11. Though the learned counsel for the petitioner took considerable efforts to est ..... X X X X Extracts X X X X X X X X Extracts X X X X
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