For AY 2011-12 my CA set off derivative loss against interest income. This return was rejected by CPC stating that – “In SCH PART –B-T1 the assessee has claimed set off current year loss. For example assessee has not filled the SCH P&L however there is claim of current year business loss OR without filing the details of sale consideration and cost of acquisition has claimed capital gains loss, the system has correctly not allowed these losses as there is no basis for the same. Further as per Sec 73 of the IT Act set off of speculation loss against non speculation business income is not allowable”. As a result a tax demand is generated. Multiple rectification requests filed without making any changes to the return were rejected by CPC. Appreciate if someone could help with how to resolve this issue so that tax demand goes away.
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