The assessee claimed the setoff of business loss and depreciation against the addition made u/s 68 of the Act . The set off was not allowed by the Assessing Officer , which was affirmed by the Appellate Tribunal . On appeal allowing the appeal the Court held that amendment brought in sub-section (2) of section 115BBE by Finance Act, 2016, whereby set off of losses against income referred to in section 68 was denied, would be effective from 1-4-2017 . Accordingly the assessee is entitle to set off the brought forward loss and depreciation against the addition u/s 68 of the Act . Matter remanded to the Appellate Tribunal for further adjudication . Referred CBDT Circular No.11/2018 dated 19-6-2019(AY. 2006-07)
Shree Karthik Papers Ltd. v. Dy. CIT (2020) 273 Taxman 546 / 196 DTR 248 (Mad.)(HC)
S. 72 : Carry forward and set off of business losses -Unabsorbed depreciation -Can be set off against sum chargeable to tax as income u/s 68 of the Act – Provision of S.115BBE which barred set off of losses against income determined u/s 68 was effective from 1-4 -2017 and not applicable for the Assessment year 2006 -07 [ S. 32 , 68 71 ,115BBE ]