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2022 (2) TMI 30 - AT - Income TaxDisallowing set off of losses claimed by the appellant set-off of business losses and carried forward losses against the undisclosed income - AO stated that the income disclosed u/s 69A of the Act is a ‘headless income’ and accordingly it cannot be treated as income from other sources - HELD THAT:- Finally, the Legislature has put to rest the controversy by making an amendment in Section 115BBE (Charging section for income under section 68 to 69D) by expressly inserting in a sub-section (2) of section 115BBE, the word ‘set off any loss’ vide Finance Act, 2017 which is applicable w.e.f. from 01/04/2017 - CBDT vide its Circular No 11 of 2019 has clarified that for period up to A.Y. 2016-17, the income computed u/s 115BBE (Section 68 to 69D) can be used for setting off losses if any. We are of the view according to the CBDT Circular No. 11 of 2019 business losses and brought forward losses can be set-off against the income assessed under section 115BBE - respectfully following the above CBDT circular as well as the orders passed by the Coordinate Benches of the various Tribunals and the Hon’ble High Courts, we direct to delete the addition made by the A.O. and confirmed by the ld. CIT(A). - Decided in favour of assessee.
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