Tribunal held that ; since Commissioner (Appeals) had not unearthed a new source of income, but only had gone by annual report/statements enclosed to return in which assessee had claimed set off of trading loss and Assessing Officer had not examined said claim, Commissioner (Appeals) was justified in making addition to income of assessee .The claim of loss being notional and without any basis set off of said loss against income under different head is held to be not allowable .( AY.2002-03)
Fincity Investments (P.) Ltd. v. ACIT (2018) 172 ITD 240 / 196 TTJ 755(Hyd) (Trib.) Veeyes Investments ( P) Ltd v. ACIT ( 2018) 172 ITD 218/( 2019) 197 TTJ 261 /175 DTR 109(Hyd) (Trib)
S. 251 : Appeal – Commissioner (Appeals) – Powers –Enhancement- Notional trading loss-Set –off against income under different head –Enhancement on the basis of annual report and statement enclosed to return cannot be considered as new source of income – Disallowance of notional trading loss by valuing shares at lesser amount without any basis and also set-off said loss against income under different head- Enhancement and disallowance is held to be justified . [ 73 ]