TMI Blog2014 (2) TMI 1244X X X X Extracts X X X X X X X X Extracts X X X X ..... . 71 of the Act, we are of the view that the aforesaid section allows set off of loss under any head of income, other than capital gains, against income assessable for that assessment year under any other head. Only restriction being, there should not be any income under the head capital gains. Therefore, if the assessee has sustained loss under any head, except capital gains, and the assessee has no income from capital gains during the year, then loss can be set off against income assessable under any other head. However, it appears from the record that assessee has not raised this issue before the first appellate authority. That apart, full facts relating to this issue have not been brought on record. It is also submitted by the learned A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying in the office. This came to the knowledge of the management in the last week of September, 2013 when the CIT (A) for the subsequent assessment years i.e., 2008-09 to 2010- 11 involving the same issue decided the matter against the assessee and such order was received by the assessee on 26/9/2013.Immediately, thereafter the assessee got the appeal prepared for the assessment year under consideration through an Advocate and filed the same before the Tribunal on 1-10-2013. It was further contended that the matter of delay was seriously viewed by the Management and the services of the said General Manager (Finance) were discontinued with effect from 21/10/13. It was therefore requested for condonation of said delay. 3. The learned DR, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and recreational events. For the impugned assessment year the assessee filed return of income declaring total income of ₹ 3,00,006/-. During the scrutiny assessment proceeding the Assessing Officer noticed that the assessee has received interest of ₹ 41,15,158 from member banks which was not offered to tax. In response to query made by the Assessing Officer the assessee explained that since interest income is from member banks, it is exempt as per the principles of mutuality. It was submitted by the assessee that only income received from non members are offered to tax. The Assessing Officer noted that the Hon ble Andhra Pradesh High Court in assessee s own case in asst. years 1996-97 to 2003-04 has held that if the club has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .3, the assessee has raised the issue of set off of operational loss against income assessed. 12. We have heard the parties. The learned AR submitted before us that during the year the assessee has sustained operational loss which should have been set off against the assessed income under the provisions of sec. 71 of the Act. The learned DR on the other hand submitted that since the assessee is not carrying on any business activity, there is no question of allowing set off of loss u/s 71 of the Act. 13. Having considered the submissions of the parties, we do not find any merit in the submissions of the learned DR. On a careful reading of sec. 71 of the Act, we are of the view that the aforesaid section allows set off of loss under any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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