Suvino Televideo Vs ITO (ITAT Mumbai)
ITAT Mumbai held that assessee is permitted to set off unabsorbed depreciation pertaining to AY 1997-98 to 2001-02 against short term capital gains. Accordingly, AO is directed to delete the addition and appeal of the assessee is allowed.
Facts- During the year under consideration, the assessee has shown income from house property of Rs. 2,10,252/- after setting off unabsorbed depreciation of Rs. 4,33,328/- of A.Y. 2006-07, business loss of Rs. 2,10,252/- and income from capital gain of Rs. 11,14,59,699/-which has been set off against the unabsorbed depreciation for A.Y. 2007-08, thus resulting in Nil total income for the year under consideration.
AO was of the view that the business losses included depreciation u/s. 72 of the Act, hence, carry forward of depreciation including business losses can be set off from business income only. It is further stated that in case of assessee there is no business income during the year under consideration. Hence, the set off of unabsorbed depreciation as claimed by the assessee against the house property income and capital gains is disallowed and the incomes under respective heads are brought to tax.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
