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2014 (6) TMI 1071 - AT - Income TaxSet off of business loss earned from F & O trading activity - Denial of benefit of loss or deduction merely on the ground that the assessee has not claimed the same in the return of income - HELD THAT:- As in an assessment, AO is to compute total income of the assessee as per the provisions of the Income Tax Act. If any loss actually suffered by the assessee or any deduction which is legally allowable to the assessee and in relation to which all the details are available before the AO at the time of the assessment, then such loss or deduction is to be allowed by the AO and in fact the AO is duty bound to compute the total income of the assessee as per provisions of law and it cannot be appreciated that the AO will not allow the benefit of loss or deduction to the assessee merely on the ground that the assessee has not claimed the same in the return of income. Our above view finds support from an old circular of CBDT bearing no. No. 14(XL-35) of 1955, dated 11-4-1955 wherein it was opined that “Officers of the department must not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him As in view of the decision of the Hon’ble Supreme Court in D.P. Sandu Bros. Chembur (P) Ltd [2005 (1) TMI 13 - SUPREME COURT] the amount which has been deemed as income u/s. 69 is assessable as income from other sources and because of the same, it forms part of the total income of the assessee. It is not in dispute that genuine business loss can be set off against the income which is assessable under the head ‘income from other sources’. We, therefore, do not find any error in the order of the Commissioner of Income Tax (Appeals). It is confirmed. The ground of appeal of Revenue is dismissed.
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