Brought Forward Business Loss Cannot Offset STCG on Depreciated Assets

Sabeena Silk Mills Vs ITO (ITAT Mumbai)

ITAT Mumbai: No Set-Off of Brought Forward Business Loss Against Short-Term Capital Gains on Depreciated Assets u/s 50

Mumbai ITAT held that brought forward business losses cannot be set off against short-term capital gains (STCG) computed u/s 50 on the sale of depreciated assets forming part of a block of assets, as such gains are taxable strictly under the head “Capital Gains” & section 41(2) has no application in such cases.

Assessee filed its return declaring ₹1,78,62,050 as capital gains u/s 50 fr

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