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2015 (11) TMI 268 - AT - Income TaxRectification of mistake - omission to disallow a sum towards loss on sale/exchange of fixed assets in the original assessment - Held that:- Notice issued u/s 154 of the Act clearly mentions the intention of the Learned AO by duly mentioning the mistake that had crept in the original assessment order towards omission to disallow the loss on sale of fixed assets to the tune of ₹ 10,27,456/-. Admittedly, the loss on sale of fixed assets is only a capital loss and cannot be construed as a loss incidental to the business as claimed by the Learned AR. Hence the said capital loss ought to have been disallowed in the computation of total income by the assessee voluntarily or by the Learned AO in the original scrutiny assessment proceedings in accordance with law. However, the same was duly sought to be rectified by the Learned AO in section 154 proceedings as it is not a debatable issue and the said mistake is patent , glaring and very obvious AO had clearly mentioned the mistake sought to be rectified in the notice u/s 154 of the Act itself. We don't endorse the arguments of the Learned AR that when there is no computation under the head capital gains while determining the taxable income, the resultant capital loss cannot be set off against the business income. This is a glaring mistake committed by both assessee as well as by the Learned AO in original scrutiny assessment proceedings which was later rectified u/s 154 by the Learned AO and we hold that the action of the Learned CITA does not require any interference in this regard. - Decided against assessee.
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