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TMI Blog2012 (8) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No.0189/Addl. CIT- B/2008-09 dated 13.09.2010 is contrary to law and facts. 2. The learned Commissioner of Income-tax(Appeals) V erred in upholding the action of the Assessing officer in holding that the Appellant cannot set off the loss under the busienss against property income. 3. The learned Commissioner of Income-tax(Appeals) V ought to have held that the income chargeable under the head 'property' should be set off against the loss under the head 'business' in accordance with the provisions of Section 71 of the Income Tax Act, 1961." 3. At the outset, learned counsel mentioned that the CIT(A) erred in upholding the assessing officer's conclusion that the assessee cannot set off the brought forward business loss against the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he context of exempt income, whereas in the present case, it is not the case of exempt income, but a case of entitled deduction under a provision falling under Chapter VIA of the Act, and the assessee is entitled for deduction under S.80P of the Act, as the assessee earns income from banking activities within the meaning of the provisions of S.80P of the Act. He submitted that exempt income and eligible deduction are two different concepts. Elaborating this point, it is submitted that an exempt income does not enter the total income at all at the time of income computation, whereas, in the case of deduction under Chapter VIA of the Act, deduction is allowed after the total income is determined, i.e. fter granting eligible deductions under e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. In this regard, we perused the provisions of S.71(1) of the Act, which reads as follows- "71.(1) Where in respect of any assessment year the net result of the computation under any head of income, other than 'Capital gains', is a loss and the assessee has no income under the head "Capital gains", he shall, subject to the provisions of this Chapter, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head." From the above, we find that the only restriction on the allowability of loss inter-se heads of income is with regard to capital gains loss. Otherwise, the sub-section (1) of S.71 allows set off of loss under any head against income of other heads. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee before the CIT(A) in our opinion were not adjudicated by passing a speaking order. Oblique reference made by the CIT(A) to the provisions of S.80P of the Act was in the context of eligibility of assessee's income for deduction under S.80P and not qua the exempt nature of the income for being set off against house property income. 10. The orders of the Revenue authorities show that the assessee has shown current year's business loss at Rs.8,69,96,156 and income from house property amounts to Rs.5,99,983. Assessee also claimed brought forward loss of Rs.39,29,70,200. It is not clear from the orders of the lower authorities as to why the assessee did not claim or if claimed, not allowed by assessing officer the set off of the curr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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