The Supreme Court has held that income credited in the business books with respect to which the assessee fails to prove satisfactorily the source and the nature of receipt of the amount, shall be deemed to be receipts from business. The undisclosed income assessed under section\u00a068\u00a0of the\u00a0Income-tax Act, 1961\u00a0need not be treated as income falling totally outside the ambit of the classifications contained in section\u00a014. Section\u00a0115BBE\u00a0had prohibited allowance of deductions alone, as it stood prior to the amendment with effect from April 1, 2017. The provision was amended with effect from April 1, 2017. The amendment has been made to expressly provide that no set-off of any loss shall be allowable in respect of income under S.\u00a068\u00a0or S\u00a069\u00a0or S.\u00a069A\u00a0or section or S.\u00a069C\u00a0or S.\u00a069D. The intention of the Legislature in introducing the amendment, as stated in the Explanatory Notes, is to avoid unnecessary litigation and to expressly provide that no set-off of any loss shall be allowable in respect of income under S. \u00a068. Prior to the amendment no bar existed with respect to allowing set-off against the carried forward unabsorbed depreciation on fixed assets, with respect to income under S.68.\u00a0Accordingly, that the assessee was entitled to set off of carried forward unabsorbed depreciation against income assessed under S.\u00a0 68 for the AY. 2013-14.\u00a0 (Lakshmichand Baijnath v CIT ( 1959) 35 ITR 416 (SC) A. Govindarajulu mudaliar v CIT (1958) 34 ITR 807 (SC)\u00a0 ( 2017) 391 ITR 253(St) (312) (AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 32 : Depreciation-Unabsorbed depreciation-Carry forward and Set off-Entitle to set off carried forward unabsorbed depreciation against income assessed u\/s. 68 of the Act-Prior to Amendment of S.115BBE with effect from 1-4-2017-Amendment is not retrospective. [S. 68 115BBE] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-9471","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2sL","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=9471"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9471\/revisions"}],"predecessor-version":[{"id":9472,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9471\/revisions\/9472"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=9471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=9471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=9471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}