Madras HC Allows Set-Off of Business Loss Against Section 50 STCG from depreciable business assets

Bojaraj Textile Mills Ltd Vs ACIT (Madras High Court) Madras High Court has ruled in favor of Bojaraj Textile Mills Ltd., affirming that short-term capital gains (STCG) arising from the sale of depreciable business assets can be set off against brought forward business losses. The court’s decision was made by answering three substantial questions of law, concluding that the Income Tax Appellate Tribunal (ITAT) was incorrect in its previous stance. The core of the dispute was a reassessment proceeding initiated against the assessee for allegedly setting off business losses incorrectly. The IT...