TaxTMI 
TaxTMI 
2019 (9) TMI 1628
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....he Income Tax Act, 1961 (hereinafter referred to as the 'Act') by raising these three additional grounds of appeal: "1. For that on the facts and in the circumstances of the case, the order u/s 263 passed by the PCIT, be held to be had in law because the reasons & grounds for which the AO's order was ultimately held to be erroneous and prejudicial were different from the reasons set out in the show cause notice issued u/s 263. 2. For that on the facts and in the circumstances of the case, the PCIT did not give opportunity of hearing to the appellant to rebut the grounds on which the AO's order was ultimately considered erroneous and there being non compliance with the principles of natural justice; the order u/s 263 deserves to be cance....
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....the returned loss was wrongly adjusted against the additions made u/s 68, 69 & 69C. In response the appellant furnished its objections on 20.02.2019; relying on the judgment of the Hon'ble Calcutta High Court in the case of CIT Vs Atha Mines Limited in ITA No.158 of 2018 dated 13.12.2018, wherein it was held that the additions made u/s 69, 69 & 69C were eligible for set off against current year's business loss in terms of the mandatory provisions of Section 70 & 71 of the Act. The Ld. Pr. CIT however referring to the judgment of the Hon'ble Kerala High Court in the case of CIT Vs Kerala Sponge Iron Ltd (379 ITR 330)held that he was not agreeable to the contentions put forth by the appellant. The ld. Pr.CIT accordingly held the assessment or....
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.... is squarely covered in favour of the assessee by the decisions of the jurisdictional High Court in the case of CIT Vs Atha Mines Limited (supra) and this Tribunal in the case of DCIT vs M/s Atibir Hitech Pvt Ltd in ITA No. 1747/Kol/2017 dated 29.03.2019. He further invited our attention to the Circular No. 11/2019 issued by the CBDT dated 19.06.2019, wherein the Board has clarified that the prior to AY 2017-18, the assessees are entitled to set-off business losses against the income taxed u/s 68, 69 & 69C and the amendment brought in Section 115BBE by the Finance Act, 2016 was prospective and hence applicable from AY 2017-18 and onwards. For the reasons set out in the foregoing, the ld. AR thus contended that the show cause notice issued a....
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....er and in the case of Shri Pradeep Kumar Todi (supra) cited by the learned DR at the time of hearing before the Tribunal was different in as much as claim was made in the said cases for set off of brought forward business losses of the earlier years against the income assessed u/s 68 for the current year whereas the issue involved in the present case is relating to the claim of the assessee for set off of business loss of the current year against the income assessee u/s 68 in the same year. It is observed that this issue as involved in the assessee's case is squarely covered in favour of the assessee by the various judicial pronouncements cited by the learned counsel for the assessee. In one of such decisions rendered in the case of ITO....
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.... 20l3-14. We thus in terms of our aforesaid observations are persuaded to subscribe to the view taken by the CIT(A) that the loss suffered by the assessee from F&O transactions could be 'set off' against the income of Rs. 5,73,96,307/- that was allegedly assessed by the A.O under Sec. 68 of the Act. The Ground of appeal No. 2 raised by the revenue is dismissed." 13. As the issue involved in the present case as well as all the material facts relevant thereto are similar to that of M/s. Prism Share Trading Pvt. Ltd., we respectfully follow the decision rendered by the Tribunal in the said case and uphold the impugned order of the Ld. CIT(A) allowing the claim of the assessee for set off of loss under the head "Profits and Gains of b....
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....erred to the Board so that a consistent approach is adopted by the Assessing Officers while applying provision of section 115BBE in assessments for period prior to the assessment year 2017-18. 3. The Board has examined the matter. The Circular No. 3/2017 of the Board dated 20th January, 2017 which contains Explanatory notes to the provisions of the Finance Act, 2016, at para 46.2, regarding amendment made in section 115BBE(2) of the Act mentions that currently there is uncertainty on the issue of set-off of losses against income referred 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 setoff against income referre....