SHAHUL HAMEED,MANANTHAVADY vs. ITO, WARD-2, KALPETTA

ITA 355/COCH/2024Status: DisposedITAT Cochin27 March 2025AY 2014-2015Bench: Shri Inturi Rama Rao (Accountant Member), Shri Sandeep Singh Karhail (Judicial Member)8 pages
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What did the Tribunal hold?

The Tribunal, following the Kerala High Court judgment in Vijaya Hospitality and Resorts Ltd. v/s CIT, held that the provisions of Section 115-BBE(2) are applicable only from April 1, 2017. Therefore, for Assessment Year 2014-15, the Assessing Officer was directed to allow the set-off of 'House Property' loss against the income assessed under Section 69 of the Act.

What were the facts?

The assessee, a partner in 'Double Seven Plaza', was subjected to reassessment proceedings following a survey action. An amount of INR 8,50,000 was treated as unexplained investment under Section 69 of the Income Tax Act and taxed under Section 115-BBE. The Assessing Officer denied the set-off of 'House Property' loss against this income, citing Section 115-BBE(2), which the assessee contended was not applicable for AY 2014-15.

What were the issues?

Whether Section 115-BBE(2) of the Income Tax Act, which restricts the set-off of losses against certain incomes, applies prospectively from April 1, 2017, or retrospectively to Assessment Year 2014-15.

Which sections of the Income-tax Act were involved?

Section 250,Section 154,Section 147,Section 143(3),Section 69,Section 115-BBE,Section 115-BBE(2),Section 133A,Section 148,Section 68,Section 14,Section 69A,Section 69C,Section 69D,Section 72(2),Section 32(2)

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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Inturi Rama Rao & Shri Sandeep Singh Karhail

Hearing: 24.03.2025

Per Sandeep Singh Karhail, JM :

1.

The assessee has filed the present appeal against the impugned order dated 26/03/2024, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], which in turn arose from the order passed under section 154 of the Act, for the assessment year 2014-15. 2. The solitary grievance of the assessee is against the denial of the set-off of loss under the head “House Property” against the addition

2 ITA No.355/Coch/2024. Sri.Sahul Hameed. made under section 69 of the Act by applying the provisions of section 115-BBE(2) of the Act.

3.

The order continues below.

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