Case Law Details
ITO Vs M/s Smart Sensors & Transducers Ltd. (ITAT Mumbai)
As regards to set off of business loss against gain on sale of depreciable asset of factory building by the assessee, we find that the co-ordinate Bench of the Tribunal in the case of M/s. Raj Shree Roadlines vs ITO (ITA No.1627/Mum/2012) for A.Y . 2007-08 has considered the issue of business loss of unabsorbed depreciation and eligible business loss can be set off against short term capital gain computed under section.50 of the Act. We find that the Tribunal after considering the provisions of section 32(2), 72(2) and 73(3) of the Act opined that while deciding the issue of carrying forward of loss/unabsorbed depreciation and the amendment made in these section from time to time are applicable for carrying forward of depreciation/loss with effect from 1.4.2002. For this proposition, the Tribunal has relied on the decision of Hon’ble Bombay High Court in the case of CIT vs. Hathway Investments (P) Ltd., in Income Tax Appeal (L) No.405 of 2012 dated 341.3.2013. We find the above proposition is supported by the decision of Hon’ble Bombay High Court in the case of Manali Investment (supra), , wherein, it is held that short term capital gain computed under section.50 of the Act can be set off against brought forward capital loss and also brought forward business loss. Accordingly, we are of the considered view that the CIT(A) has rightly allowed the claim of the assessee and we affirm the same.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-14, Mumbai [in short CIT(A)], in Appeal No. CIT(A)-14/IT-200/14-15 vide order dated 31.08.2016. The Assessment was framed by the Income Tax Officer, Ward-7(2)(4) (in short ‘ITO/ AO’) for the A.Y. 2011-12 vide order dated 30.03.2014 under section 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’).
2. The only issue in this appeal of the revenue is against the order of the CIT(A) in allowing set off of brought forward business loss and brought forward long term capital loss against the deemed short term capital gain computed by the assessee. For this, the revenue has raised following two grounds:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
