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2015 (10) TMI 320 - HC - Income TaxRectification of mistake - set off of the carry forward business loss denied - Held that:- In the instant case the Assessing Officer sought to rectify the original assessment order on the ground that carried forward business loss and same had been set off against the total income which was inclusive of the income earned by the assessee under the head "Income from Other Sources" and "Income from House Property" as declared by him in the return of income and carried forward loss could have been set off against "Business Income" only. As already observed by us herein above the issue as to whether the said income earned by way of interest on Fixed Deposits, NSCs, would be available to the assessee to seek for set off as business loss or not under section 72 of the Act is a debatable issue and as such we are of the considered view that said issue could not have been gone into in a proceeding under section 154 of the Act. The "brought forward loss" came to be set-off against the total income earned by the assessee as per the assessment order dated 30.11.2006. As to whether income earned by way of interest would form part of total income so as to allow the assessee to seek set-off is an issue which will have to be gone into in detail and mere declaration in the return of income by assessee would not alter its status and as such it cannot be held that an error had occurred in the assessment order so as to enable the Assessing Officer to invoke section 154 of the Act for rectification. In that view of the matter we are of the view that substantial question of law is required to be answered in the negative i.e., in favour of assessee and against the revenue.
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