2020 (4) TMI 575

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.... and on facts in confirming the actions of the DCIT in assessing the amount of Rs. 2,00,00,000/- as deemed income u/s 69 of the Act. 2. That the learned CIT(A) has erred in law and on facts in confirming the actions of the DCIT in not allowing set off of current year depreciation and current year business losses amounting Rs. 65,54,780/- from the additional income of Rs. 2,00,00,000/-. 3. That the learned CIT(A) has erred in law and on facts in confirming the actions of the DCIT in not completing the assessment as per the provisions of sec 115BBE as applicable to AY 2014-15. (Tax Effect = Rs. 22,27,969/-) 4. That the appellant craves leave to add, alter, amend or to substitute the above grounds of appeal either before or at the time o....

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....ture and, hence, applicable retrospectively. 4. However, before us, Ld. Counsel for the assessee relied upon the Circular No. 11 of 2019 of the CBDT, which reads as under:- "Circular No. 11/2019 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North-Block, New Delhi, dated the 19th of June, 2019 Subject: Clarification regarding non-allowability of set-off of losses against the deemed income under section 115BBE of the Income-tax Act, 1961 prior to assessment-year 2017-18-reg. With effect from 01.04.2017, sub-section (2) of section 115BBE of the Income-tax Act, 1961 (Act) provides that where total income of an assessee includes any income referred to in section(s) 68/69/69A/69B/69C/69D of ....

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....to in section 115BBE. It also further mentions that the pre-amended provision of section 115BBE of the Act did not convey the intention that losses shall not be allowed to be set-off against income referred to in section 115BBE of the Act and hence, the amendment was made vide the Finance Act, 2016. 4. Thus keeping the legislative intent behind amendment in section 115BBE(2) vide the Finance Act, 2016 to remove any ambiguity of interpretation, the Board is of the view that since the term 'or set off of any loss' was specifically inserted only vide the Finance Act 2016, w.e.f. 01.04.2017, an assessee is entitled to claim set-off of loss against income determined under section 115BBE of the Act till the assessment year 2016-17. 5.....