9911796707
TMI Blog2022 (7) TMI 1013X X X X Extracts X X X X X X X X Extracts X X X X ..... g that the bogus income of Rs.9,40,17,274/- declared by the assessee cannot be added u/s 68 of the Act even if the assessee failed to prove the source and genuineness of the transactions. 2. Whether on the facts and circumstances of the case and in law, the ld. CIT (A) has erred in deleting the addition of Rs.9,40,17,274/- made by AO as unexplained cash credit u/s 68 r.w.s. 115BBE of the I T Act without appreciating the facts that the new section 115BBE of the I T Act was inserted from the Finance Act, 2012 w.e.f. AY 2013-14 instated of the Finance Bill 2016." 3. Brief facts of the case are that the assessee is engaged in the business of manufacturing industry. The assessee has filed return of income on 29.10.2015 for AY 2015-16 declarin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,03,00,090 4 Vinavak Commodities 21,99,910 It is seen that the Assessing Officer has computed the income at page 12 in para 7 of the order as under: Total income from business/profession Rs. (as declared by the assessee) 39,98,870 Less: Reduce the bogus income from commodity shown by the assessee (-) Rs.9,40,17,274 Total loss (-) Rs.9,00,18,404 Add: As per para 6 above u/s 68 r.w.s. 115BBE Rs..9,40,17,274/- 4.1 It will be apparent from the aforesaid that the Assessing Officer determined the loss at Rs.9,00,18,404/- but has not set off the same against income of Rs.9,40,17,274/- being income from trading in share commodity and brought to tax u/s 68 of the Act read with section 115BBE of the Act. However, it is seen that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d section reads as under: "(1) Where the total income of an assessee,- (a) includes any income referred to in section 68, section 69, section 69A, section 698, section 69C or section 690 and reflected in the return of income furnished under section 139; or (b) determined by the Assessing Officer includes any income referred to in section 68, section 69, section 69A, section 698, section 69C or section 690, if such income is not covered under clause (a), the income-tax payable shall be the aggregate of- (i) the amount of income-tax calculated on the income referred to in clause (a) and clause (b), at the rate of sixty per cent; and (ii) the amount of income-tax with which the assessee would have been chargeable had his total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the set off of any loss shall also be not allowable in respect of income under the aforesaid sections. This amendment will take effect from t" April 2017 and will, accordingly apply in relation to the assessment year 2017-18 and subsequent years." Also memorandum explaining the Finance Bill' 2016 viz-a-viz the above amendment, read as under: "Clarification regarding set off losses against deemed undisclosed income. "Section 11588E of the Act, inter alia, provides that the income relating to section 68 of section 69 of section 69A or section 698 or section 69C or section 690 is taxable at the rate of thirty percent and further provides that no deduction in respect of any expenditure or allowances in relating to income referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be intended to have a retrospective operation." 6. Thereafter, ld. CIT (A) referred to other case laws in this regard and finally concluded as under :- "Therefore, considering the facts and circumstances of the case, the amended provisions of the section 115BBE for prohibition of set off of losses are not applicable to the AY under consideration and since the assessee has fully disclosed the profits earned from commodity trading, the action of the AD is not tenable and accordingly the separate addition of Rs.9,40,17,274/- made by the AD u/s 68 read with section 115BBE is hereby deleted." 7. Against this order, Revenue has filed an appeal before us. 8. As already noted by us, ld. counsel of the assessee has referred to CBDT Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
