TaxTMI 
TaxTMI 
2016 (4) TMI 1394
X X X X Extracts X X X X
X X X X Extracts X X X X
....se. 02. The Ld.CIT(A) erred in allowing set off of business loss from the unexplained cash credits u/s.68 of the Act, is in violation of the jurisdictional High Court's decision in the case of S.Muthukumars Stanely Rajan Vs. ITO cited in [2014] 42 taxmann.com 439(Mad.), wherein it was held that when unexplained cash credit had been added to income, contention of assessee that necessary expenditure should be deducted and profit alone could be taken as income could not be accepted. 3. The facts of the case are that the assessee in this case wants to set off of income offered u/s.68 of the Act against the loss incurred by the assessee. The AO had not allowed the set off of the income offered u/s.68 of the Act against the loss incurred in al....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arlier decisions of the Apex Court commencing from the case of United Commercial Bank Ltd. Vs. CIT (1957) 32 ITR 688 (SC) have been considered by the Apex Court and hence, it is not necessary to repeat the same. Suffice it to state that the Act does not envisage taxing any income under any head not specified in section 14 of the Act. In the circumstances, there is no question of tying to read any conflict in the two judgements of this court as submitted by the learned Counsel for the Revenue". Hence, the Ld.CIT(A) directed the AO to allow set off of carried forward depreciation loss in accordance with section 72 & section 32 of the Act for assessment year 2006-07. Against this the Revenue is in appeal before us. 4. None appeared for the as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the case of Chandrakumar Vs. ACIT reported in [2010] 129 TTJ 0489(Chennai Trib.) wherein held that:- 7. A reading of the sections 71, 72 and 32(2) would show that s. 71 deals with inter-head adjustments within a given year. Sec. 72 provides for carry forward and set off of loss, whereas s. 32(2) deals with carry forward of unabsorbed depreciation. The last of these above referred sections clearly mentions that unabsorbed depreciation has to be added to the depreciation allowance of the subsequent year and to be considered as part of the current depreciation. This position is clear from the decision of the Hon'ble apex Court in the case of Virmani Industries (supra). Of course, the order of the Hon'ble apex Court does bring out the....