A.yr 2010-11-error in software

Efiling 638 views 6 replies

dalbir

24 Points Joined December 2011

Hi,

I have come across a strange situation while using IT filing Excel utility provided by the IT dept on its e filing website.

The summary of the same is as under:-

I have b/f business loss (NOT SPECULATIVE) – Rs. 100 relating to A.YR 2009-10(return filed in time)

In A.Yr. 2010-11, I have business income consisting of

normal business profit and Rs. 80; and

Speculation business income Rs. 10

When I press ‘’Calculate set off’’ button in schedule CFL in ITR 4-

IT SETS OFF ONLY BUSINESS INCOME (Rs. 80/-) AGAINST THE B/F BUSINESS LOSS AND DOES NOT SETS OFF SPECULATION INCOME (Rs. 10/-). This is contrary to Section 72 of the IT Act.

Also, when I manually put in the values in CFL (Rs. 90) and CYLA, it accepts them, BUT STILL CALCULATES TAX on Rs. 10 DISALOWING THE SET OFF OF SPECULATION BUSINESS INCOME.

I have downloaded software from the Income TAX E FILING SITE for A.YR 2010-11, many times but this error persists.

Can you please check and help.

Replies (6)

amit agarwal

dept head

137 Points Joined December 2011

sir its not in contravention of sec 72 as prior year c/f profir from PGBP although not speculative cannot be set off against current year speculative profit.......

just refer sec 72 once again

so its not an sofware error

dalbir

38 Points Joined December 2011

Thanks for ur reply.

Basically, it means that b/f business loss cannot be adjusted with current year's speculation business income?

Section 72- Where for any assessment year, the net result of the computation under the head "Profits and gains of business or profession" is a loss to the assessee, not being a loss sustained in a speculation business, and such loss cannot be or is not wholly set off against income under any head of income in accordance with the provisions of section 71, so much of the loss as has not been so set off or, where he has no income under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and - (i) It shall be set be off against the profits and gains, if any, of any business or profession carried on by him and assessable for that assessment year:

Is my understanding of section 72 wrong?

Regards

Dalbir

dalbir

38 Points Joined December 2011

Dear Mr. AGARWAL,

what is PGBP

amit agarwal

dept head

137 Points Joined December 2011

just go throw once more

the line is "set be off against the profits and gains, if any, of any business or profession carried on by him and assessable for that assessment year"it emplies that non speculative c/f busines losses can be set off only against non speculative business income of current year and not against speculative busines income...

is it ok now sir

wese PGBP means business income

regards

Amit

dalbir

38 Points Joined December 2011

If by '' set off against the profits and gains, if any, of any business or profession carried on by him........" it was intended that only business profits and not speculative business income, then they would have specifically excluded the speculation income as they have done in the first line of section 72.

Therefore, in my opinion, Business profits would include speculation profits unless otherwise stated.

Regards,

Dalbir