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2021 (2) TMI 1081 - AT - Income TaxDisallowance u/s 69C - unexplained expenditure claimed by the assessee - set off of losses against deemed undisclosed income - Eligibility of benefit of section 71 - provisions of section 115BBE Applicability - whether the provisions of section 115BBE of the Act is prospective or retrospective in nature? - HELD THAT:- In the present case, during survey an income was surrendered and added in the income of the assessee and consequent business loss was claimed, the same is available for set-off against business loss. Even the Hon'ble High Court of Madras in the case of CIT vs. Chensing Ventures [2007 (4) TMI 204 - MADRAS HIGH COURT] has considered an identical issue and held that the AO cannot deny benefit of section 71 of the Act, and the AO has to consider the undisclosed income u/s. 69 of the Act, but once the loss is determined, the same should be set-off against the income determined under any other head of income. We are of the considered view that the provisions of section 69C of the Act, will apply but consequent loss is to be set-off against this income. As regards to applicability of section 115BBE of the Act, as clarified by the CBDT as provisions brought out by the Finance Act, 2016 in the statute book w.e.f. 01.04.2017, the same is prospective and not retrospective. Appeal of the assessee is allowed.
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