TMI Blog2020 (7) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... filed the computation of income correctly. The computation filed is as per the scheme of computation provided in the Income Tax Act. The provisions of Section 74 clearly provides for set off of short term capital losses which can be allowed to be carried forward and set off against income, if any, under the head capital gains assessable for the assessment year in respect of any other capital asset. The statute confers carry forward and set off of losses hence the same cannot be denied in the absence of any specific provisions or conditions laid down in the same statute to disallow such benefits. It is a fact on record that the short term capital loss which has been incurred in the assessment year 2007-08 and the same has been allowed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried forward in the by the assessment order u/s 143(3)/153A for the assessment year 2010-11. 4. The Assessing Officer has disallowed the set off of such brought forward short term capital loss of ₹ 49,83,312/- against the short capital gain declared during the year on the grounds that, the claim of the assessee is not tenable in view of the fact that in his statement recorded u/s 132(4), the assessee has not claimed the adjustment of brought forward loss on account of the short term capital gain declared. 5. The ld. CIT (A) supported the contention of Assessing Officer on the grounds that the additional income offered by the assessee was intended to offered to tax, the entire amount of ₹ 15.22 crores while making allowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the rationale given by the Assessing Officer while disallowing the set off is not statutorily tenable. 10. The ld. CIT (A), having accepted the surrendered income which was offered under the short term capital gain as declared during the search proceedings u/s 132(4), failed to adhere to the provisions of computation of income as provided under the Income Tax Act. The computation of income of the assessee is as under: i) Business Income Net Loss as per P L A/c (19,08,891.64) ii) Short Term Capital Gain for the year Less: Unabsorbed Short Term Loss B/f from A.Y.2008-09 15,22,00,000.00 49,83,312.64 14,72,16,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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