TaxTMI 
TaxTMI 
2019 (9) TMI 444
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....ce u/s 154 of the Act. 2. In this case, the assessment under section 143(3) of the Act was completed on 31.10.2012 at a total income of Rs. 28,10,880/-, after set off of brought forward Business Loss of Rs. 42,50,204/- for assessment years 2008-09 & 2009-10 and Unabsorbed Depreciation of Rs. 49,208/- for assessment years 2008-09 & 2009-10. Further, it had been noticed from the assessment order and case record by the A.O that income from "Non-Speculative Business" had been set-off against brought forward Business Loss, for assessment years 2008-09 & 2009- 10 of Rs. 42,50,204/- [19,03,967+23,46,237], which were determined as speculative loss during scrutiny assessment for the relevant assessment year and was, in the opinion of the Assessing Officer, not permissible as per I.T. Act. Therefore, a notice under section 154 of the Act was issued on 13.01.2016 to the assessee company, proposing the above mistake to be rectified, as the mistake was apparent from record. The relevant portion of the notice is reproduced as under: "From the perusal of record & Computation of income it has been noticed that business losses for the A.Y Rs. 2008-09 & 2009-10 of Rs. 19,03,967/- & Rs. 2....
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....t U/s 143(3) of the Act was completed on 31.10.2012 at total income of Rs. 28,10,880/- after set off of brought forward Business Loss of Rs. 42,50,204/- for A.Y 2008-09 & 2009-10 and Unabsorbed Depreciation of Rs. 49,208/- A.Y 2008- 09 & 2009-10. It was noticed by AO from the assessment order and case record that Income from "Non-Speculative Business" has been set-off from brought forward "Business Loss for A.Y 2008-09 & 2009-10 of Rs. 42,50,204/- [19,03,967+23,46,237], which were assessed as speculative loss during scrutiny assessment for relevant Assessment year. Appellant accepted this finding of the AO and has also not challenged during this appellate proceeding. It is clearly not permissible as per I.T. Act. Therefore, action of AO under section 154 of the I.T. Act 1961 proposing to treat the above mistake and to rectify the same as the mistake that is apparent from record is legally correct. From the perusal of record & Computation of income, it is established that business losses for the AYs 2008-09 & 2009-10 of Rs. 19,03,967/- & Rs. 23,46,237 respectively have been incorrectly set-off from the Business Income of AY 2010-11, even though the same were determined as s....
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....of shares Rs. 5,19,09,372.02 Purchase of shares Rs. 0,72,93,266.11 Share Transfer Agent's Expenses Rs. 0,00,12,685.00 Demat Charges Rs. 0,00,32,018.19 Securities Transaction Tax Rs. 0,01,45,983.55 Sale of Shares Rs. 5,69,18,371.34 Profit on sale of shares Rs. 0,00,01,028.76 Closing stock of shares Rs. 4,47,70,860.44 6. Further, a scanned copy of pages 20 and 21 of the Report, comprising of Schedule 'B', i.e., the Schedule of Stock in Trade annexed to and forming part of the Balance Sheet as on 31/3/2010 and the profit and loss account (supra) for the year ended on that date, is being appended as under, for ready reference: 7. The Explanation to section 73 of the Act, as applicable to the year under consideration, reads: "Explanation.-Where any part of the business of a company other than a company whose gross total income consists mainly of income which is chargeable under the heads "Interest on securities", "Income from house property", "Capital gains" and "Income from other sources" or a company the principal business of which is the business of banking or the granting of loans and advances) consists in the purchase and ....
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....earlier two years, the business of the assessee was a speculative business. Ergo, the business of the assessee company in the year under consideration remains the same as that in the earlier two assessment years. 13. In view of the above, we hold that there was no mistake apparent from the record in the original assessment order dated 16/3/2016 and the brought forward losses of Rs. 42,50,204/- had correctly been set off against the speculative business income of Rs. 87,04,503/-, for the year under consideration. 14. Hence, finding merit in the grievance sought to be raised by the assessee, the same is accepted. The order under appeal is reversed. 15. In the result, the appeal is allowed. Order pronounced in the open Court on 06/09/2019. ============= Document 1 SCHEDULE 'B' Schedule of Stock in Trade annexed to and forming part of the Balance Sheet as at 31st March, 2010 and Profit and Loss Account for the year ended on that date OPENING STOCK PURCHASES/ADJUSTMENTS SALES/ADJUSTMENTS CLOSING STOCK No. of Shares Value Rs. No. of Shares Value Rs. No. of Shares Value Rs. No. of Shares Value Rs. FULLY PAID QUOTED ....
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....1000 195508.75 0 0.00 32. Pioneer Projects Ltd. 246850 33.Ridhi Sidhi Commercials Ltd. 551800 510979.50 1158780.00 246850 551800 510979.50 1158780.00 34. Plastic Products Ltd. 8500 1.00 8500 1,00 35 Andhra Cements Ltd. 1000 17300.00 1000 36. Heidelberg Cement India Ltd. 1500 27975.00 2000 88092.17 3500 26400.00 167755.00 37. Praj Industries Ltd. 500 25990.00 500 25990.00 38. Ispat Industries Ltd. 3500 39. Tata Chemicals Ltd. 950 37975.00 134187.50 4000 96714.56 7500 950 145500.00 310507.50 40. Alok Industries Ltd. 2400 29880.00 2400 53280.00 41. Brandhouse Retails Ltd. 20 0.00 20 0.00 42. Petronet LNG 5000 43. Hindustan Zinc 500 355354.05 634627.68 44.KRBL 5000 1130898.49 5000 500 5000 400188.87 0 0.00 642190.32 0 0.00 1246766.62 0 0.00 45. Yes Bank 47. Tamilnadu Newsprint Ltd. 48. Sakthi Sugar Ltd. 250 68707,63 250 59054.03 0 0.00 46.Bombay Dyeing & Manufacturing 500 296240.29 500 276350.00 2000 178304.04 ....