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2018 (11) TMI 779 - AT - Income TaxBusiness loss set off against income from capital gains - proof of incurrence of loss during the course of business - assessee derived the income from house property and the income from capital gains on sale of property - Held that:- To allow the set off business loss against the current years income, the assessee has to establish that she has incurred the loss during the course of business. AO as well as the CIT(A) have given finding that the borrowals were used for investment or for personal purposes but not for any business purposes. Further, the assessee has not furnished the details of withdrawals made from the current account of the partnership firm and matching utilisation of the funds with relevant statements of bank account. The assessee neither produced the details before the AO nor before the CIT(A) regarding the application of withdrawals made from the current account/capital account with tangible evidence such as relevant bank account copies etc. Assessee did not furnish the statement of affairs or the balance sheet from the date of first overdrawal till date to demonstrate the application of funds. No reason to differ with the finding given by the AO as well as the CIT(A) that the withdrawals made from capital account or current account with M/s ABC Engineering Works were mainly used for personal purposes and the funds were not used for any business purposes. Therefore, we hold that the AO has rightly disallowed the claim made by the assessee which was upheld by the CIT(A). - Decided against Assessee.
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