TaxTMI 
TaxTMI 
2022 (5) TMI 1488
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....his appeal, are that the Assessee, being an individual had filed its return of income electronically on dated 29.09.2014 by declaring an income of Rs.7,27,940/- on turnover of Rs.97,60,257/- u/s. 44AD of the Act, which was taken into consideration by the Assessing Officer by issuing statutory notices and seeking certain information from the Assessee. In response to the said notices, the Assessee vide letter dated 29.04.2016 submitted that the amount of Rs.1,34,30,000/-, which relates to the construction business, remained omitted while filing the original return of income and therefore, the difference in turnover is Rs.1,34,30,000/- and the addition in the profit @ 8% amounting to Rs.10,74,400/- may be added in the income of the Assessee. ....
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....t had himself admitted that he had not maintained any account during the year and therefore the records of receipts was not maintained. Further, as pointed out above, the appellant was specifically asked by me to produce bills and vouchers and any other evidence in support of his contentions that he had carried out any business activity in the form of construction during the year. The appellant admitted that no such evidence was available as no bills and vouchers were maintained. Keeping in view the aforesaid facts, it is held that the appellant had not carried out any business activity during the year under consideration and as such the cash deposits in the bank account were out of his undisclosed income. Further, as pointed out by the Ass....
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...., the Assessee has preferred the instant appeal and in support of its case, mainly emphasised that though the Assessee has preferred the appeal against affirmation of the disallowance and sustenance of disallowing the set off of business loss amounting to Rs.1,49,01,258/-, however, the main grievance of the Assessee is non-allowing the set off of business losses from the income including deemed income u/s. 68 determined against the Assessee. The Assessee also claimed that the ld. Commissioner, while sustaining the disallowance of set off of determined business losses from the deemed income u/s. 68 of the Act, relied upon the judgment in Kim Pharma (P) Ltd. (supra) by Hon'ble Punjab & Haryana High court, in which the judgment of Hon'ble Gujr....
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....t off of losses against the deemed income u/s. 115BBE of the Act prior to assessment year 2017-18 by clarifying as under : "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." 4.3 Learned AR also relied upon various judgments passed by the Hon'ble High Courts and the Tribunal, wherein the Hon'ble Courts have taken into consideration the aforesaid CBDT Circular N....
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....the income of the Assessee and also did not allow the claim of the Assesseequa set off of losses against the business income by determining the amount of Rs.1,52,32,097/- as speculative losses, being nongenuine and non-bona fide. 6.1 The ld. Commissioner while considering the appeal of the Assessee sought remand report from the Assessing Officer and after considering the remand report, affirmed the addition of Rs.1,34,70,000/- as income of the Assessee from undisclosed sources taxable u/s. 69 of the Act. The ld. Commissioner, on the basis of remand report, out of Rs.1,52,32,097/-, which was claimed as set off as business losses from income, accepted the amount of Rs.1,49,01,258/- as business losses, however, declined to allow the setting o....
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....2,097/- specifically covers u/s. 115BBE of the Act, therefore, the provisions of sub-sec. (2) inserted vide Finance Act, 2016 in section 115BBE of the Act, shall not be applicable to the instant case. 6.6 Even otherwise, various High Courts including Hon'ble Gujrat High Court in the case of CIT vs. Shilpa Dyeing & Printing Mills P. Ltd. (supra), whileconsidering the amendment in section 115BBE(2) of the Act brought by Finance Act, 2016 and the CBDT Circular No. 11/2019 (supra), has held that "once loss is determined, the same should be set off against the income determined under any other head of income including undisclosed income". 6.7 We further like to add that amendment brought in section 115BBE vide Finance Act, 2016 and CBDT Circul....