TaxTMI 
TaxTMI 
2025 (6) TMI 71
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....dual carrying on the business of running a Petrol Pump. Return of income for A.Y. 2019-20 filed on 31.10.2019 declaring income of Rs.32,31,701/-. Return processed u/s.143(1)(a) of the Act vide order dated 14.05.2020 wherein two disallowances were made, firstly regarding the disallowance u/s.36(1)(va) for the delay in deposit of Employees Contribution to ESIC/PF amounting to Rs.86,140/- and the second was a disallowance of the claim of set off of brought forward business loss against the short term capital gain from sale of depreciable business assets at Rs.94,03,288/-. Income computed at Rs.1,27,21,129/-. 3. Against the said disallowances, assessee preferred appeal before ld.CIT(A) but failed to succeed. Now the assessee is in appeal befor....
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....overed in favour of the assessee by the decision of Hon'ble Jurisdictional Bombay High Court in case of PCIT V. Alcon Developers [432 ITR 277] as well as by Hon'ble Karnataka High Court in Nandi Steels Ltd. v. ACIT [436 ITR 238] and therefore, the said adjustment made in the intimation u/s 143(1) should have been deleted. 5. The appellant craves, leave to add, alter, amend and delete any of the above grounds of appeal." 4. At the outset, ld. Counsel for the assessee has not pressed Grounds of appeal No.1 and 2. Therefore, the said grounds are dismissed as "not pressed". 5. Assessee's contention for ground No.3 is that the issue of set off of business losses against short term capital gain is a debatable issue and therefore such ....
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....provision it provides for carry forward and set off of business losses provided u/s.72 of the Act, and Section 72(1)(i) provides that brought forward business losses can be set off against the profits and gains, if any, of any business or profession carried on by him and assessable for that assessment year. Section 72(1)(ii) provides that losses which cannot be wholly so set off the amount of losses not so set off shall be carry forward to the following assessment years which shall not exceed eight assessment years subject to the proviso to section 72(1) of the Act. 8. Now in the income-tax return prepared by the assessee and furnished online the informations are filled in the computer system separately for the brought forward business los....
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....43(1)(a) of the Act. We fail to find any merit in such contention of ld. Counsel for the assessee for the reason that there are numerous cases where due to interpretation by the Hon'ble Courts divergent views on same issue are available along with change of facts. It is not possible for the CPC to give command for each and every type of such debatable issues in the computer system to prevent the prima-facie adjustments. Returns processed by CPC are governed by the provisions of section 143(1)(a) of the Act and in case there is any issue and the assessee is aggrieved with the adjustments made by CPC then the assessee is not left remediless as the option is very much available to the assessee to file appeal before ld.CIT(A) and raise relevant....
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....(supra) is concerned, assessee has not placed reliance on the said judgment before ld.CIT(A). 12. We observe that there are no specific provisions under the Act which clearly provides that the short term capital gains assessable u/s.50 of the Act can be set off against the brought forward business losses because if claim of assessee is considered, then the question will arise whether short term capital loss u/s.50 of the Act can be set off against the business income. It will further question the intent of section 50 of the Act which deals with the special provisions for computation of capital gains in case of depreciable assets. Question will also arise about section 71(3) of the Act which provided that if the net result of the computatio....