INCOME TAX ACT, 1961

Section 115BBE

Tax under section 115BBE - Tax on income referred to in section 68 to section 69D - No set-off of any loss shall be allowed to assessee against the deemed income -

This appeal preferred was directed against the order of Tribunal wherein ITAT had seriously erred in holding that provisions of section 115BBE providing that no set off of any loss shall be allowed to assessee against the deemed income under section 68, 69, 69A to 69(2), was not applicable to assessment year 2014-15 and thus, set-off of the loss allowed to assessee ignoring provisions of section 115BBE was absolutely unjustified. Held: Indisputably, the provisions of section 115BBE as existed prior to the amendment does not provide that losses shall not be allowed to be set off against the income referred in section 115BBE and it is only to dispel the uncertainty prevailing on the issue, provision was amended. A bare perusal of the provisions makes it abundantly clear that it cannot be applied retrospectively. Moreover, now vide Circular No. 11/2019, the CBDT had clarified in unequivocal terms that the term 'or set off of any loss' was inserted vide the Finance Act, 2016 with effect from 1-4-2017 and therefore, an assessee was entitled to claim set-off of loss against the income determined under section 115BBE till the assessment year 2016-17. Therefore, appeal of Revenue was dismissed.

Followed:Aacharan Enterprises (P.) Ltd., IT Appeal No. 124 (Jodh.) of 2017, dated 3-7-2017.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2014-15

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