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2018 (8) TMI 665

eld that:- By virtue an amendment has been brought in by the Finance Act, 2016 in Section 115BBE(2) of the IT Act, the words “or set off of any loss” were inserted w.e.f. 01.04.2017. The said amendment has been made w.e.f. assessment year 2017-18 as also clarified by the CBDT Circular No. 3/2017 dated 20-01-2017. - In the instant case, it is not disputed by the Revenue that the assessee has current year business losses including 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 curre .....

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addition of said amount to the income of the appellant as unexplained cash credit u/s 68 of the I.T. Act, 1961. 3. That without Prejudice to the ground No. (1) & (2) above, the Ld. CIT(A) is also wrong and has erred in law in confirming the action of the Assessing Officer in assessing above said income of ₹ 78,71,000/- u/s 115BBE of the I.T. Act, 1961 and in further upholding finding 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 ₹ .....

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or section 69A or section 69B or section 69C or section 69D is taxable at the rate of thirty per cent and further provides that no deduction in respect of any expenditure or allowances in relation to income referred to in the said sections shall be allowable. 46.2 Currently, there is uncertainty on the issue of set-off of losses against income referred to in 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 .....

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-2017. Further, in case of M/s Pitamber Commodity Futures Pvt. Ltd. vs. ACIT (supra), speaking through one of us wherein we had an occasion to examine the said issue, we have held the said amendment is prospective in nature. The relevant findings in M/s Pitamber Commodity Futures Pvt. Ltd. are reproduced as under:- 8 In light of above 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 .....

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