2019 (3) TMI 1115

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....s 143(3) by an order dated 26.02.2016 on total Loss of Rs. 9,43,161/. Subsequently, the Pr.CIT, Vijayawada has taken up the case for revision u/s 263 and found that the assessee had set off the speculative loss against the business income, thus, viewed that the assessment order passed by the Assessing Officer (AO) u/s 143(3)dated 26.02.2016 is erroneous and prejudicial to the interest of the revenue. Accordingly issued show cause notice directing the assessee to explain as to why the assessment framed u/s 143(3) should not be revised u/s 263 of the Act. In response to the notice, the assessee filed explanation stating that the assessee did not claim any set off of speculation loss against the business income and the AO also did not allow th....

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....2013. Referring to page No.4 of the paper book, the Ld.AR submitted that in Schedule CYLA of the Income Tax Return, the assessee claimed for carry forward of business loss at Rs. 9,73,410/- and speculation loss was separately claimed in Schedule CFL under loss from speculative business. The assessee further submitted that as per page No.5 of the paper book, the assessee claimed carry forward of business loss separately and speculation loss separately. The business loss was Rs. 9,73,410/- and speculation loss was Rs. 4000/- which was claimed for carry forward separately. Referring to page No.9 of the paper book, the assessee submitted that as per the profit and loss account, the speculation loss was Rs. 4000/-. In the notes forming part of P....

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....rent year speculation loss of Rs. 4000/-. The computation of total loss arrived by the AO in page No.3 of the assessment order which reads as under : Loss returned : Rs.9,77,410 Add : Disallowance Depreciation u/s 32 : Rs. 34,249     ______________ Loss assessed   Rs.9,43,161/- Tax thereon : Nil Note : Unabsorbed loss, depreciation loss for the A.Y. 2013-14 Depreciation Loss : Rs.9,39,162 Business Loss (Speculation Loss) : Rs.37,13,336/- 5.1. From the above computation, it is observed that though the loss assessed including the speculation loss was Rs. 9,43,161/-, the AO allowed the business loss of Rs. 9,39,162/- for carry forward excluding the speculation los....