| The Tax Publishers2020 TaxPub(DT) 3152 (Mad-HC) : (2020) 273 TAXMAN 0546 INCOME TAX ACT, 1961
Section 115BBE
CBDT in the Circular bearing No.11/2019, dated 19-06-2019 had taken note of legislative intent behind amendment in section 115BBE(2), for the purpose of removing any ambiguity of interpretation, observed that vide Finance Act, 2016 with effect from 01-04-2017, an assessee is entitled to claim set-off of loss against income determined under section 115BBE till the assessment year 2016-17, where assessment year in the present appeal pertained to 2006-07, therefore, matter required further adjudication and substantial question of law raised by assessee was held in affirmative, as it required further adjudication.
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Tax under section 115BBE - Applicability - Unabsorbed depreciation denied to be set off against sum chargeable to tax as income under section 68 -
Assessee declared 'Nil' income after adjusting brought forward business loss of earlier years. AO assessed total income as 'Nil'. Subsequently ACIT passed an order under section 154 revising order of assessment and assessed the total income as 'Nil'. The very same official had found that income charged under Section 68(1) was wrongly adjusted against the brought forward loss of earlier years and therefore, the income chargeable to tax had escaped assessment and accordingly, issued the notice under section 148. CIT(A) had directed AO to allow set-off of carry forward depreciation loss in accordance with sections 72 and 32. Tribunal held that there was no warrants in law for set off of unabsorbed depreciation or business loss against sums chargeable to tax as income under section 68 in as much as the same do not fall to be categorized under any head of the Income Tax under section 14 and found that assessment was liable for revision or rectification. Held: CBDT in the Circular bearing No.11/2019 dated 19-06-2019 had taken note of the legislative intent behind amendment in Section 115BBE(2), for the purpose of removing any ambiguity of interpretation, observed that vide Finance Act, 2016 with effect from 01.04.2017, an assessee is entitled to claim set-off of loss against income determined under section 115BBE till the assessment year 2016-17. Assessment year in present appeal pertained to 2006-2007 and therefore, this Court was of considered view that in the light of cited judgment in CIT v. Chensing Ventures (2007) 291 ITR 258 (Mad) : 2007 TaxPub(DT) 1146 (Mad-HC) as well as the circular, the matter in issue required further adjudication at the hands of Tribunal. Therefore, substantial question of law raised by assessee was held in affirmative, as it required further adjudication.
Followed:CIT v. Hussain Mohideen Ibrahim Sha [TCA.No.722 of 2018, dt. 24-6-2019], CIT v. Shilpa Dyeing & Printing Mills Pvt. Ltd. (2014) 219 Taxman 279 (Guj) : 2014 TaxPub(DT) 0164 (Guj-HC), CIT v. Chensing Ventures 2007 (291) ITR 258 (Mad) : 2007 TaxPub(DT) 1146 (Mad-HC), DCIT v. Shree Karthik Papers Ltd. [I.T.A.No.325/Mds./2015, dt. 6-4-2016]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2006-07
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