TMI Blog2018 (8) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... current year depreciation excluding a part of the business income declared as commission income which has been reclassified by the Assessing Officer and brought to tax under the head “income from other sources”. In our view, the assessee is eligible to claim set off of current year business loss including current year depreciation against current year income assessed under the head “income from other sources” under section 71 of the Act. The amendment brought by the Finance Act, 2016 in section 115BBE(2) is effective from assessment year 2017-18 and is not applicable for the impugned assessment year. Decided partly in favor of assessee. - ITA. No. 575/JP/2018 - - - Dated:- 3-8-2018 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng recorded by the assessing officer that current year loss will not be set off against income assessed u/s 115BBE even though relevant provisions disallowing set off has come into force w.e.f. 1-4-2017. 2. Briefly, the facts of the case are that during the year under consideration, the assessee has declared income from commission and brokerage at ₹ 78,71,900/- in its profit and loss account and offered the same to tax under the head profit and gain of business/profession . The Assessing Officer, however, observed that the commission receipt of ₹ 78,71,000/- is in the nature of unexplained cash credit and brought the same to tax U/s 68 r.w.s. 115BBE of the I.T. Act. 3. The ld. AR has contended that the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 115BBE of the Income-tax Act. The matter has been carried to judicial forums and courts in some cases has taken a view that losses shall not be allowed to be set - off against income referred to in section 115BBE. However, the current language of section 115BBE of the Income-tax Act does not convey the desired intention and as a result the matter is litigated. In order to avoid unnecessary litigation, the provision of subsection (2) of section 115BBE of the Income-tax Act has been amended as to expressly provide that no set off of any loss shall he allowable in respect of income under the sections 68 or section 69 or section 69A or section 69B or section 69C or section 69D. 46.3 Applicability: This amendment takes effect from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discussions, it is clear that the amendment brought in Section 115BBE wherein no set off of losses against surrendered income brought to tax is prospective in nature and does not apply for the assessment year under consideration. The decisions relied upon by the Revenue have also been examined and does not support its case. For the year under consideration, there is no bar for set off of current year business loss U/s 71 against income brought to tax under the head income from other sources . We are therefore of the view that the assessee will be eligible for set off of current year business loss of ₹ 7,67,768/- against the undisclosed investment of ₹ 36,00,000/- towards purchase of plot of land which has been surrendered durin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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