2007 (4) TMI 204

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..... Income-tax Appellate Tribunal was right in law in holding that, and direct the Assessing Officer to compute the income, business loss has to be set off against the other income, even though the assessee surrendered the income at the time of survey under section 133A of the Income-tax Act, 1961 ?" 2. The brief facts leading to the above substantial question of law are as under : 3. The assessee is a firm consisting of two partners. The firm is carrying on business of purchase and sale of steel scraps both locally and in the mid sea. The relevant assessment year is 2002-03 and the corresponding accounting year ended on March 31, 2002. A survey under section 133A of the Income-tax Act, 1961 ("the Act" in short), was conducted by the Departm .....

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..... sed by the assessee-firm. There was no reason given by the Assessing Officer to deny the set off of the business loss against the income declared under the head "Other sources". Aggrieved by the order, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the appeal and directed the Assessing Officer to set off the business loss against the income from other sources and allowed the appeal. Aggrieved, the Revenue filed an appeal to the Income-tax Appellate Tribunal ("the Tribunal" in short). The Tribunal also confirmed the order of the Commissioner of Income-tax (Appeals) and dismissed the appeal. 5. Learned standing counsel appearing for the Revenue submitted that during .....

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..... evied separately on each head of income and it is not an aggregate of various taxes computed with reference to each of the different sources separately. There is only one assessment and the same is made after the total income has been ascertained. The assessee is subject to Income-tax on his total income though his income under each head may be well below the taxable limit. Hence the loss sustained in any year under any heads of income will have to be set off against income under any other head. In this case, the Assessing Officer made addition of Rs. 28,50,000 as undisclosed income under section 69 of the Act. Once the loss is determined, the same should be set off against the income determined under any other head of income. In the assess .....

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