2025 (7) TMI 1569

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....g invalid in law and deserves to be quashed. 2. On facts and in circumstances of the case and in law Ld. CIT(A) erred in confirming the denial of rectification under section 154 of the Income Tax Act by the ld. AO, same being bad in law deserves to be quashed. 3. That the appellant reserves the right to add/alter/modify/deleted any or all grounds at any time before the hearing." 3. Succinctly, the fact as culled out from the records is that the assessee is an individual deriving income under the income from house property, income from business or profession, income under the head capital gains and income from other sources. While filling the ITR the assessee has claimed set off the house property loss of Rs. 1,62,673/- against short term capital gains of Rs. 1,70,618/- as per section 71 of the Act. But ld. AO adjusted such loss against Business Income instead of short-term capital gain and accordingly the demand of Rs. 18,260/- was raised against the assessee u/s 143(1) of the Act. Against that intimation the assessee filed a rectification application before ld. AO [ CPC ] as per provision of section 154 of the Act and the rectification application filed by ....

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....heads of income which can then be adjusted against the Capital Gains However, in cases where the tax payer has sufficient income from heads of income other than Capital Gains, the loss under one head shall be adjusted against the income under those heads (That is, the income from Capital Gains shall be adjusted against the losses under any other heads only when the income from other heads of income is not sufficient to offset the loss. In the present case, the appellant had losses of Rs. 1,62,673/- under the head House Property and income of Rs. 6.67,500/- under the head Business & Profession. As such, the A.O, was right in adjusting the house property losses against income from Business & Profession) 5.5 Considering the above, the contention of the appellant is rejected. Grounds of appeal no. 1 & 2 are dismissed 6 In the result, the appeal is "dismissed" 5. Aggrieved with that finding of the ld. CIT(A), the assessee is in appeal before this tribunal on the ground as stated herein above challenging the order of the lower authority. In support of the grounds so raised the ld. AR of the assessee vehemently argued that the order passed u/s 154 of the Act is incorr....

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....head of income, other than "Capital gains", is a loss and the assessee has income assessable under the head "Capital gains", such loss may, subject to the provisions of this Chapter, be set off against his income, if any, assessable for that assessment year under any head of income including the head "Capital gains" (whether relating to short-term capital assets or any other capital assets). (2A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head "Profits and gains of business or profession" is a loss and the assessee has income assessable under the head "Salaries", the assessee shall not be entitled to have such loss set off against such income. (3) Where in respect of any assessment year, the net result of the computation under the head "Capital gains" is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to have such loss set off against income under the other head. (3A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment ye....

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.... Saving ,IFSC: SBIN0001534 Mob:9200920990 Tele: Computation of Total Income [As per Normal Provisions] Income from House Property (Chapter IV C) -162673 Self Occupied Property 117 SHASTRI NAGAR KOTA(RAJASTHAN)-324009 Interest u/s 24(b) (162673) -162673 Income from Business or Profession (Chapter IV D) 667500 Income u/s 44ADA 667500 Income from Capital Gain (Chapter IV E) 170618 Short Term Capital Gain Capital Gain as per Details Attached 1972 Capital Gain as per Details Attached (stt) 168646 Long Term Capital Gain Long Term Capital Gain u/s 112A as per 97912 Details Attached Note: - Threshold Limit of Rs. 1,00,000 as given u/s 112A is the part of Total Income but in tax calculation this amount will be excluded. Brought Forward Long Term Capital Loss -97912 Income from Other Sources (Chapter IV F) 31597 Interest From Saving Bank A/c(as per Annexure) 3407 Interest on F.D.R.(as per Annexure) 15004 Dividend From Shares 13186 Document 2 NAME OF ASSESSEE : NIKHIL KHANDELWAL A.Y. 2022-2023 PAN : CSUPK3245H Code :IT-61,Group Code :GROUP-1 31597 7070 42 Gross Total Income Less: Deductions (Chapter ....