9911796707
TMI Blog2019 (10) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Act, 1961 (for short the 'Act'). 2. In this case, the AO passed assessment order u/s 143(3) of the Act, determining the total loss of the assessee at Rs. 6,63,85,814/- as against the loss of Rs. 9,27,07,655/-filed by the assessee in its return of income. Subsequently, the Ld. Pr.CIT revised the assessment order passed by the AO exercising the jurisdiction u/s 263 of the Act, on the ground that in the order u/s 143(3) of the Act the AO has made addition of Rs. 2,40,16,841/- after holding the unsecured loans from four parties as unexplained cash credits u/s 68 of the Act, however, while computing tax the AO allowed set off losses against this income u/s 68 in violation of the provisions of section 115BBE. The assessee is in appeal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 03.08.2018 to substantiate its claim. 5. On the other hand, the Ld. departmental representative relied on the ooder passed by the Ld Pr. CIT. 6. We have carefully gone through the material on record including the Circular of the CBDT and the decision of the ITAT relied upon by the Ld. counsel. As pointed out by the Ld. counsel for the assesseeThe CBDT has clarified the issue regarding applicability of the provisions under section 115BBE of the Act. Para 4 para of the Circular reads as under: "4. Thus Keeping in the legislstive intent behind amendment in section 115BBE(2) vide the Finance Act, 2016 to remove any ambiguity of interpretation, the Board is of the view that since, the term ór set off of any loss'was specifically ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing depreciation, against current year income under the head Income assessed from other sources, under section 71 of the Act. The assessee in this case had declared commission and brokerage income in its profit and loss account and offered the same to tax under the head profit and gain of the business. The AO treated it as unexplained cash credit and brought to tax under section 68 read with section 115JBBE. Hence, the assessee's case is also covered by the decision of the Jaipur Bench of the Tribunal. 9. Since, the impugned order passed by the Ld. Pr. CIT u/s 263 is contrary to the provisions of the Act and contrary to the decision of the Jaipur Bench of Tribunal discussed above, we allow the sole ground of appeal of the assessee and quas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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