{"id":13463,"date":"2019-06-20T16:15:56","date_gmt":"2019-06-20T10:45:56","guid":{"rendered":"http:\/\/itatonline.org\/info\/?p=13463"},"modified":"2019-06-20T16:15:56","modified_gmt":"2019-06-20T10:45:56","slug":"s-115bbe-cbdt-circular-clarifies-law-reg-set-off-of-loss-against-deemed-income","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/s-115bbe-cbdt-circular-clarifies-law-reg-set-off-of-loss-against-deemed-income\/","title":{"rendered":"S. 115BBE: CBDT Circular Clarifies Law Reg Set-Off Of Loss Against Deemed Income"},"content":{"rendered":"<p>The CBDT has issued Circular No. 11\/2019 dated 19th June 2019 in which it has provided important clarification regarding the non-allowability of set-off of losses against the deemed income under section 115BBE of the Income-tax Act, 1961 prior to assessment-year 2017-18<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- responsive --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-6440093791992877\"\n     data-ad-slot=\"6406297397\"\n     data-ad-format=\"auto\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script> <\/p>\n<div class=\"journal2\"><a href=\"https:\/\/itatonline.org\/info\/s-115bbe-cbdt-circular-clarifies-law-reg-set-off-of-loss-against-deemed-income\/cbdt-circular-115bbe\/\" rel=\"attachment wp-att-13464\">Click here to download CBDT&#8217;s Circular No. 11\/2019 dated 19th June 2019 <\/a><\/div>\n<blockquote><p>Circular No. 11\/2019<br \/>\nGovernment of India<br \/>\nMinistry of Finance<br \/>\nDepartment of Revenue<br \/>\nCentral Board of Direct Taxes<br \/>\nNorth-Block, New Delhi, dated the 19th of June, 2019<\/p>\n<p>Subject: Clarification regarding non-allowability of set-off of losses against the<br \/>\ndeemed income under section 115BBE of the Income-tax Act, 1961 prior to<br \/>\nassessment-year 2017-18-reg.<\/p>\n<p>With effect from 01.04.2017, sub-section (2) of section 115BBE of the Income-tax<br \/>\nAct, 1961 (Act ) provides that where total income of an assessee includes any income<br \/>\nreferred to in sect ion(s) 68\/69\/69A\/69B\/69C\/69D of the Act, no deduction in respect of any<br \/>\nexpenditure or allowance or set off of any loss shall be allowed to the assessee under any<br \/>\nprovisions of the Act in computing the income referred to in section 115BBE(1) of the Act.<\/p>\n<p>2. In this regard, it has been brought to the notice of the Central Board of Direct Taxes<br \/>\n(the Board) that in assessments prior to assessment year 2017-18, while some of the<br \/>\nAssessing Officers have allowed set off of losses against the additions made by them under<br \/>\nSection(s) 68\/69\/69A\/69B\/69C\/69D, in some cases, set off of losses against the additions<br \/>\nmade under Section 115BBE(1) of the Act have not been allowed. As the amendment<br \/>\ninserting the words &#8216;or set off of any loss&#8217; is applicable with effect from p t of April, 2017 and<br \/>\napplies from assessment year 2017-18 onwards, conflicting views have been taken by the<br \/>\nAssessing Officers i[l assessments for years prior to assessment year 2017-18. <\/p>\n<p>The matter<br \/>\nhas been referred to the Board so that a consistent approach is adopted by the Assessing<br \/>\nOfficers while applying provision of section 115BBE in assessments for period prior to the<br \/>\nassessment year 2017-18.<\/p>\n<p>3. The Board has examined the matter. The Circular No. 3\/2017 of the Board dated 20th<br \/>\nJanuary, 2017 which contains Explanatory notes to the provisions of the Finance Act, 2016,<br \/>\nat para 46.2, regarding amendment made in section 115BBE(2) of the Act mentions that<br \/>\ncurrently there is uncertainty on the issue of set-off of losses against income referred to in<br \/>\nsection 115BBE. <\/p>\n<p>It also further mentions that the pre-amended provision of section 115BBE<br \/>\nof the Act did not convey the intention that losses shall not be allowed to be set-off against<br \/>\nincome referred to in section 115BBE of the Act and hence, the amendment was made vide<br \/>\nthe Finance Act, 2016.<br \/>\n-,<\/p>\n<p>4. Thus keeping the legislative intent behind amendment in section 115BBE(2) vide the<br \/>\nFinance Act, 2016 to remove any ambiguity of interpretation, the Board is of the view that<br \/>\nsince the term &#8216;or set off of any loss&#8217; was specifically inserted only vide the Finance Act<br \/>\n2016, w.eJ. 01.04.2017, an assessee is entitled to claim set-off of loss against income<br \/>\ndetermined under section 115BBE of the Act till the assessment year 2016-17.<\/p>\n<p>S. The contents of this Circular may be circulated widely for information of all<br \/>\nstakeholders and departmental officers. The pending assessments and litigations on this<br \/>\nissue may be handled accordingly.<\/p>\n<p>6. Hindi version to follow.<br \/>\n(F.No.22S\/4S\/2019-ITA.II)<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The CBDT has issued Circular No. 11\/2019 dated 19th June 2019 in which it has provided important clarification regarding the non-allowability of set-off of losses against the deemed income under section 115BBE of the Income-tax Act, 1961 prior to assessment-year 2017-18<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/s-115bbe-cbdt-circular-clarifies-law-reg-set-off-of-loss-against-deemed-income\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_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":""},"categories":[1,7],"tags":[],"class_list":["post-13463","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/13463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=13463"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/13463\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=13463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=13463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=13463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}