Ambalal Sarabhai Enterprises Limited Vs DCIT (ITAT Ahmedabad)
Material Facts
The assessee appealed against the order of the Commissioner of Income Tax (Appeals)-1, Vadodara for Assessment Year 2011-12 passed under Section 143(3) of the Income-tax Act. The Tribunal had earlier disposed of the appeal on 8 July 2025. Subsequently, on the assessee’s Miscellaneous Application under Section 254(2), the Tribunal found that Ground No. 4 relating to the set-off of brought forward business loss against short-term capital gains computed under Section 50 had not been adjudicated on merits. Accordingly, by order dated 29 January 2026, the earlier order was recalled to the limited extent of deciding that ground.
Procedural History
The assessee contended that the Assessing Officer had not allowed the set-off of unabsorbed brought forward business loss against short-term capital gains arising on sale of depreciable assets computed under Section 50. It was submitted that the issue had not been adjudicated by either the CIT(A) or the Tribunal and that a similar claim had been allowed in Assessment Year 2009-10.
The Departmental Representative submitted that the matter should be restored to the Assessing Officer to verify whether the identical claim had been allowed in Assessment Year 2009-10, as the issue had not been examined during assessment.
