19 December 2012
Dear Experts & Professional Colleagues,
I seek clarification regarding a query as enumerated here below;
Facts of the case; Assessee during the course of search u/s. 132 conducted at his premises declared the income of Rs. 1 Crore. While filing Return of income U/s. 153A the said declared income is offered as "Undisclosed Income" under the head Income from Other Sources.
Query: Whether the assessee is eligible to claim set-off of carried forward losses against the Undisclosed Income as shown under the head Income from Other Sources.
Please guide on the basis of facts presented above; and if possible please provide the case law and any other Judicial pronouncement for reference as a supporting to your reply to the query.
20 December 2012
No. because as per explanation of section "158BB computation of undisclosed income" For the purposes of determination of undisclosed income, - (a) the total income or loss of each previous year shall, for the purpose of aggregation, be taken as the total income or loss computed in accordance with the provisions of Chapter IV without giving effect to set off of brought forward losses under Chapter VI or unabsorbed depreciation under sub-section (2) of section 32.
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