2021 (3) TMI 390

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.... contested the additions made by the Assessing Officer on account of unexplained unsecured loan. The Assessing Officer has made the impugned additions u/s 68 read with section 115BBE of the Income Tax Act. 3. The assessee has raised the following grounds of appeal in ITA No.1598/Kol/2019 for assessment year 2013-14: "1. For that based on the facts and circumstances of the case as well as in law, the learned CIT-(A) was not justified in upholding the addition made u/s 68 by the learned AO by treating the loan received by the assessee of Rs. 25 lacs and the consequential interest of Rs. 2.55 lacs paid thereon to one M/s Captain Traders Pvt. Ltd. in spite of the fact that all the documents evidencing the identity and creditworthine....

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.... year 2014-15: "1. For that based on the facts and circumstances of the case as well as in law, the learned CIT-(A) was not justified in upholding the disallowance of interest paid of Rs. 3,00,000/- to one M/s Captain Traders Pvt. Ltd. merely on the basis that the corresponding loan taken on which such interest was paid has been considered as bogus and added u/s 68 in the preceding previous year. 2. Without prejudice to anything mentioned in ground number l above, for that based on the facts and circumstances of the case as well as in law, the learned AO was not justified in not allowing to set off the unabsorbed depreciation/business loss of the assessee incurred during the year and/or brought forward from previous years ....

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....any income referred to in section(s) 68/69/69A/69B/69C/69D of the Act, no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee under any provisions of the Act in computing the income referred to in section 115BBE(1) of the Act. 2. In this regard, it has been brought to the notice of the Central Board of Direct Taxes (the Board) that in assessments prior to assessment year 2017-18, while some of the Assessing Officers have allowed set off of losses against the additions made by them under Section(s) 68/69/69A/69B/69C/69D, in some cases, set off of losses against the additions made under Section 115BBE(1) of the Act have not been allowed. As the amendment inserting the words &#3....

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.... determined under section 115BBE of the Act till the assessment year 2016-17. 5. The contents of this Circular may be circulated widely for information of all stakeholders and departmental officers. The pending assessments and litigations on this issue may be handled accordingly. 6. Hindi version to follow. Sd/- (Rajarajeswari R.) Under Secretary-ITA.II, CBDT 6. The ld. counsel in the light of above CBDT's Circular has submitted that as per the Circular, the assessee is entitled to set off of unabsorbed losses against the income determined section 68 r.w.s. 115BBE for assessment years prior to assessment year 2017-18. The ld. counsel for the assessee therefore has submitted that in the light of the above Circul....