Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
Set off of brought forward business loss against income from other sources - As provision of section 72 are very clear that brought forward business loss can only be set off against business profit. The assessee itself has shown the interest income in its computation as income from other sources. It is not coming out from records that the fixed deposits were maintained by the assessee out of some business necessity and apparently the fixed deposits were made out of savings from rental income which the assessee has itself offered to tax under income from house property. Interest from electricity company and interest from income tax refund are essentially again ‘income from other sources’. Therefore, as per the provisions of section 72 of the Act, the Lower Authorities have rightly disallowed the set off of brought forward business losses. - AT
Set off of brought forward business loss against income from other sources - As provision of section 72 are very clear that brought forward business loss can only be set off against business profit. The assessee itself has shown the interest income in its computation as income from other sources. It is not coming out from records that the fixed deposits were maintained by the assessee out of some business necessity and apparently the fixed deposits were made out of savings from rental income which the assessee has itself offered to tax under income from house property. Interest from electricity company and interest from income tax refund are essentially again ‘income from other sources’. Therefore, as per the provisions of section 72 of the Act, the Lower Authorities have rightly disallowed the set off of brought forward business losses. - AT
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TaxTMI 
TaxTMI 
of 4915 
