Section 154 of Income Tax Act, 1961— Rectification of mistake— In the instant case, it had been noticed from the assessment order and case record by the A.O that income from "Non-Speculative Business" had been set-off against brought forward Business Loss, which were determined as speculative loss during scrutiny assessment for the relevant assessment year and was, in the opinion of the Assessing Officer, not permissible as per I.T. Act. Therefore, a notice under section 154 of the Act was issued proposing the above mistake to be rectified. as the mistake was apparent from record.

Held that—The set off of loss claimed by the assessee was allowed by the AO vide order passed u/s.143(3) of the Act, in accordance with the Explanation to section 73 of the Act, as per which, the business of the assessee company is deemed to be a speculative business. To reiterate, in the earlier two years, the business of the assessee was a speculative business. Ergo, the business of the assessee company in the year under consideration remains the same as that in the earlier two assessment years.

 In view of the above, we hold that there was no mistake apparent from the record in the original assessment order dated 16/3/2016 and the brought forward losses of Rs. 42,50,204/- had correctly been set off against the speculative business income of Rs. 87,04,503/-, for the year under consideration.[SURYA COMMERCIALS LTD. VERSUS DCIT RANGE 6 KANPUR] [2019] 17 ITCD Online (7) [ITAT LUCKNOW]