Loss Must Be Classified as Capital or Business for Proper Set-Off Against Capital Gains or Business Income

Valuable Technologies Pvt. Ltd. Vs CIT (ITAT Mumbai)

In a recent case before the Income Tax Appellate Tribunal (ITAT) Mumbai, Valuable Technologies Pvt. Ltd. challenged the order of the Commissioner of Income Tax (Appeals) – Pune-11 [CIT(A)]. The appeal focused on the issue of set-off of brought forward capital loss against long-term capital gain for the assessment year (AY) 2020-21. The assessee contended that the CIT(A) incorrectly treated the capital loss as a business loss, leading to the disallowance of the set-off. The case was heard and decided on 30th August 2024.

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