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2020 (4) TMI 298 - AT - Income TaxRevision u/s 263 - additional income surrendered during the course of survey was required to be taxed @ 30% as per the provisions of section 115BBE without allowing any deduction in respect of any expenditure or allowance under any provisions of the I.T. Act, 1961 and not by adopting / calculating the normal tax rates applicable as done by AO - whether the assessee was eligible to claim set off of loss of the current year from the business as against the declared / surrendered income ? - HELD THAT:- Since the assessment year involved in the present case is assessment year 2014-15 and whereas the amended provisions of section 115BBE(2) are applicable from 1.4.2017, hence, the assessee as per the above reproduced Board Circular was entitled for set off of loss against surrendered income. In view of this, there is no merit in the action of the Ld. PCIT in making the impugned addition and not allowing the set off of income. So far as the observation of the Ld. PCIT that the Assessing Officer has computed the income as per the normal provisions of the Act, whereas, as per the provisions of section 115BBE of the Act, the Assessing Officer should have calculated the tax @ 30% of the declared income is concerned, we find that the assessee being a company has already paid the tax @ 30%. Order of the Assessing Officer is neither erroneous nor prejudicial to the interest of Revenue, therefore, the PCIT has wrongly exercised the jurisdiction u/s 263 of the Act and the action of the Ld. PCIT in setting aside the assessment order cannot be held to be justified. The impugned order passed by the Ld. PCIT u/s 263 of the Act is, therefore, quashed. - Decided in favour of assessee.
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