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The Tax PublishersITA No. 1084/Mum/2019
2020 TaxPub(DT) 5558 (Mum-Trib)INCOME TAX ACT, 1961
Section 70 Section 115BBE
As on the relevant date of assessment, there was no bar existed with respect to allowing set off against loss with respect to income under section 69A, therefore, AO committed illegality in coming to the conclusion that deemed income would not fall even under the head of 'Income from other sources' and, therefore, deductions and set off applicable to income under other heads would not be attracted in case of deemed income covered under the provisions of section 69A.
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Loss - Set-off - Allowability against income to be taxed under section 115BBE - No bar existing as on relevent date of assessment as regards allowability of set-off
AO for the concerned assessment year 2013-14, made disallowance under section 69A and treated disallowance as deemed income and denied set-off against losses as per computation of income filed by assessee. Held: Provision of sub-section (2) of section 115BBE has been amended so as to expressly provide that no set off of any loss would be allowable in respect of income under section 68 or section 69 or section 69A or section 69C or section 69D. The intention of legislature in introducing the amendment, is to avoid unnecessary litigation. As on the relevant date of assessment, there was no bar existed with respect to allowing set off against loss with respect to income under section 69A. Therefore, AO committed illegality in coming to the conclusion that deemed income would not fall even under the head of 'Income from other sources' and, therefore, deductions and set off applicable to income under other heads would not be attracted in case of deemed income covered under the provisions of section 69A.
Followed:Vijaya Hospitality & Resorts Ltd. v. CIT [(2019) 419 ITR 322 (Karn-HC) : 2019 TaxPub(DT) 7943 (Ker-HC)].
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
IN THE ITAT, MUMBAI BENCH
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