2018 (8) TMI 665

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....ng finding recorded by the assessing officer that commission income of Rs. 38,09,900/- from M/s. Proactive In and Out Advertising Ltd is not genuine and thereby confirming the addition of said amount to the income of the appellant as unexplained cash credit u/s 68 of the I.T. Act, 1961 2. That on the facts and in the circumstances of the case, the Ld. CIT(A), is wrong, unjust and has erred in law in confirming finding recorded by the assessing officer that leasing commission of Rs. 40,62,000/- from M/s. Pacific Development Corporation Ltd. is not genuine and thereby confirming the addition of said amount to the income of the appellant as unexplained cash credit u/s 68 of the I.T. Act, 1961. 3. That without Prejudice to the ground No. ....

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....ted that it is only from assessment year 2017-18 by virtue of an amendment by which words "or set off of any loss" were inserted in sub-section 115BBE that such set off of loss will be inadmissible. 4. In support, reliance was placed by the ld AR on the CBDT Circular No. 3/2017 dated 20.01.2017 explaining the effect of amendment brought in by the Finance Act, 2016 which reads as under:- "46. Clarification regarding set off of losses against deemed undisclosed income. 46.1 Section 115BBE of the Income-tax Act inter alia provides that the income relating to section 68 or section 69 or section 69A or section 69B or section 69C or section 69D is taxable at the rate of thirty per cent and further provides that no deduction in respect of an....

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....y Bairathi Gems Ltd. (2017) 84 Taxmann.com 138 and M/s Pitamber Commodity Futures Pvt. Ltd. vs. ACIT (ITA No. 863/JP/2017 dated 21.03.2018). 6. The ld. D/R is heard who has relied on the finding of the lower authorities. 7. We have heard the rival contentions and perused the material available on record. By virtue an amendment has been brought in by the Finance Act, 2016 in Section 115BBE(2) of the IT Act, the words "or set off of any loss" were inserted w.e.f. 01.04.2017. The said amendment has been made w.e.f. assessment year 2017-18 as also clarified by the CBDT Circular No. 3/2017 dated 20-01-2017. Further, in case of M/s Pitamber Commodity Futures Pvt. Ltd. vs. ACIT (supra), speaking through one of us wherein we had an occasion to ex....