https://www.taxtmi.com/caselaws?id=69621 The Tribunal ruled in favor of the revenue, upholding that the business loss carried forward from earlier years could not be set off against the current year's profit under section 41(2) of the Income-tax Act, 1961. The Tribunal clarified that while section 41(2) allows for taxation of profits from asset sales even if the business is not operational, section 72(1) requires the business to have been actively carried on for set off purposes. As the business was not operational in the relevant year, the brought forward loss could not be set off, resulting in the revenue's appeal being upheld. en-us Thu, 01 Jan 1981 00:00:00 +0530 Mon, 11 Apr 2011 10:57:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69621 The Tribunal ruled in favor of the revenue, upholding that the business loss carried forward from earlier years could not be set off against the current year's profit under section 41(2) of the Income-tax Act, 1961. The Tribunal clarified that while section 41(2) allows for taxation of profits from asset sales even if the business is not operational, section 72(1) requires the business to have been actively carried on for set off purposes. As the business was not operational in the relevant year, the brought forward loss could not be set off, resulting in the revenue's appeal being upheld. Case-Laws Income Tax Thu, 01 Jan 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69621