TaxTMI 
TaxTMI 
2020 (8) TMI 241
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....dated 28.07.2017, passed by the Income Tax Appellate Tribunal 'C' Bench (in short hereinafter referred to as 'ITAT'). 2. The appellant / assessee filed the return of income for the assessment year 2006-2007 electronically dated 30.11.2006, declaring 'Nil' income after adjusting brought forward business loss of earlier years amounting to Rs. 63,45,202/- and it was processed under Section 143 (1) of the Income Tax Act and subsequently, the assessee filed a revised return of income on 31.12.2009, admitting the 'Nil' income. A notice under Section 148 dated 27.01.2010 was issued to regularise the return of income and accordingly the assessee has filed the revised return of income on 28.01.2010. The Assessing O....
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....bsp; Rs. 29,06,135/- Balance Payable Rs. 58,40,144/- This should be paid as per Demand Notice enclosed. The following losses are allowed to be carried forward: SI. No. A.Y Business Loss Depreciation on Loss Set-off during the A.Y.(2006- 07) Balance Business Loss Depreciation 1. 1998-99 14,266,045 63,45,202 79,20,843 2. 1999-00 11,075,678 11,075,678 3. 2000-01 202,777,325 8,569,470 202,777,32 5 8,569,470 4 2001-02 16,427,337 6,683,121 16,427,337 6,683,121 5 2002-03 4,477,948 5,233,513 4,477,948 5....
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....e appeal. 5. The assessee challenging the legality of the impugned order passed by the Income Tax Appellate Tribunal has filed this appeal and in the memorandum of grounds of appeal had raised the following Substantial Questions of Law: 1.Whether the Tribunal was right in law in holding that the unabsorbed depreciation cannot be set off against sum chargeable to tax as income u/s.68 of the Act? 2. Whether the Tribunal was right in law in applying the new provision of section 115 BBE of the Act which barred set off of losses against income determined u/s.68 which was effective from 01.04.2017 and not in existence in the statute for the current assessment year 2006-07? 6. Mr.R.Vijayaraghavan, learned counsel appearing ....
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....el. The AO has not given any reason whatsoever to deny the set off of the business loss against the income declared under the head '' other sources ''. Sec.71 deals with set off of loss against income under any other head. After setting off losses against the income under the same head, if the net result is still a loss, the assessee can set off the said loss under Section 71 of the Act against income of the same year under any other head, except for losses which arise under the head ''capital gains''. The income tax is only one tax and levied on the sum total on the income classified and chargeable under the various heads. Sec.14 has classified different heads of income and income under each head is separate....
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....9 had taken note of the legislative intent behind amendment in Section 115BBE(2), for the purpose of removing any ambiguity of interpretation, observed that vide Finance Act 2016 with effect from 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 2016-2017. In the case on hand, the assessment year pertains to 2006-2007 and therefore, this Court is of the considered view that in the light of the above cited judgment in 2007 (291) ITR 258 as well as the circular, the matter in issue requires further adjudication at the hands of the Income Tax Appellate Tribunal. 11. In the result, the Substantial Question of Law No.2 raised by the appellant is held....