17 January 2013
Hi, the assessee was working as a sales manager in icici prudential life insurance and drawing a salary of rs 6 lac per annum and the assessee has suffered a loss in derivative market of rs 600000 approx. the assessee has not filed his income tax return in that financial year but after receiving a notice u/s 148 , return is filed with interest. Now the case is selected for scrutiny u/s 143(2)and AO want to make a addition of Rs 200000/- u/s 68(unexplained cash credit). My question is that if AO makes the addition of RS 200000/- can i get the benefit of Set off from my business loss of Rs 600000/-. because the business is set off against any other income except income from salary.
17 January 2013
Yes sir. ao wants to make the addition u/s 68 but i think he should give the benefit of loss to me. because as per sec 70 the business loss can be set off against any other head except salary.
17 January 2013
Yes, your contention is appropriate. Seldom does an assessing officer accepts it as business..... in most of the individuals' cases it is regarded as speculation LOSS.
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