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2009 (7) TMI 632 - HC - Income TaxSettlement of cases- A search was carried out in the residential and business premises of the assessee. Pursuant to search, the assessee filed a return and a revised return. However, pending assessment under section 158BC of the Act, the assessee filed an application before the Settlement Commission. The Settlement Commission determined the income of the assessee at Rs. 79,68,412 for the assessment years 1986-87 to 1996-97. The Settlement Commission granted set off to the assessee of carried forward loss from house property in the computation of long term capital gains for the year 1996-97. It also allowed deduction of interest on borrowals. Held that- the Settlement Commission had computed the profit on sale of long term capital asset and further deduction from that could be granted only in accordance with the statutory provisions. Since there is an express bar against granting set off of carried forward loss, except in the case of regular assessment under section 158BB(4), the Settlement Commission should have not allowed deduction of Rs. 5,15,389 claimed by the assessee. This deduction is to be disallowed.
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