Pr. Commissioner Of Income-tax-Central, Jaipur v. Aacharan Enterprises Pvt. Ltd
[Citation -2020-LL-0121-45]
Citation | 2020-LL-0121-45 |
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Appellant Name | Pr. Commissioner Of Income-tax-Central, Jaipur |
Respondent Name | Aacharan Enterprises Pvt. Ltd. |
Court | HIGH COURT OF RAJASTHAN AT JODHPUR |
Relevant Act | Income-tax |
Date of Order | 21/01/2020 |
Assessment Year | 2014-15 |
Judgment | View Judgment |
Keyword Tags | income from business • set off of loss • deemed income • income from other source • brought forward business losses |
Bot Summary: | This appeal preferred under Section 260A of Income Tax Act, 1961 is directed against order dated 3.7.17 of the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur, passed in ITA No.124/Jodh. 2017, whereby an appeal preferred by the Revenue against the order dated 29.12.16 passed by the Commissioner of Income Tax CIT for Assessment Year 2014-15, has been dismissed. By order dated 29.12.16, the CIT held that the deemed income of Rs.6,50,00,000 of the respondent assessee is chargeable to tax under the head Income from Other Sources and allowed the intra head adjustment/set off towards the current year business loss to the extent of Rs.3,82,37,792/- and brought forward business loss to the extent of Rs.2,67,62,208/- out of the said income while ITA-4/2018 rejecting the contention of the assessee that the said sums are taxable as income from business or profession. The CIT further held that amendment made by Finance Bill 2016 to the provisions of Section 115BBE of the Act cannot be applied retrospectively. Learned counsel appearing for the appellant contended that the ITAT has seriously erred in holding that the provisions of Section 115BBE of the Act providing that no set off of any loss shall be allowed to the assessee against the deemed income under Section 68, 69, 69A to 69(2), is not applicable to the Assessment Year 2014-15 and thus, set off of the loss allowed to the assessee ignoring the provisions of Section 115BBE is absolutely unjustified. Indisputably, the provisions of Section 115BBE as existed prior to the amendment does not provide that the losses shall not be allowed to be set off against the income referred in Section 115BBE and it is only to dispel the uncertainty prevailing on the issue, the provision was amended. Now vide circular No.11/2019, the CBDT has clarified in unequivocal terms that the term or set off of any loss was inserted vide the Finance Act, 2016 w.e.f. 1.4.17 and therefore, an assessee is entitled to claim set off of loss against the income determined under Section Section 115BBE of the Act till the Assessment Year 2016-17. |