2023 (3) TMI 989

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....arjee , Adv. ...for the appellant ORDER The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the 'Act' for brevity) is directed against the order dated 28th July, 2022 passed by the Income Tax Appellate Tribunal, "B" Bench, Kolkata (the Tribunal) in ITA No.200/Kol/2022 for the assessment year 2017-18. The revenue has raised the following substantial....

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....rned Tribunal has committed substantial error in law in accepting the assessee's submission that there is no bar under the Act for setting off of derivative loss against business income. As per Section 73(1) derivative loss being speculative loss shall not be entitled to set off against any business income other than income from speculative business ? We have heard Mr. Soumen Bhattacharjee, lea....

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.... apart, the learned Tribunal recorded the submission of the learned Advocate for the assessee that even otherwise there is no bar under the Income Tax Act for setting off of derivative loss against business income. Though such submission was recorded, the learned Tribunal has not given any finding as to the correctness of such submission but proceeds to record that the Department could not have re....

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....rcumstances of the case. Therefore, we are of the view that the matter has to be freshly decided by the PCIT and, therefore, we are inclined to remand the matter back to the PCIT for fresh consideration. In the result, the appeal filed by the revenue ( ITAT/27/2023 ) is allowed and the order passed by the learned Tribunal as well as the PCIT dated 26th March, 2022 are set aside and the matter i....