2021 (1) TMI 296

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....f the assessment year 2005-06. 2.1 According to the appellant, it is in the health care industry and was incorporated in the year 1996. For the assessment year 2005-06, it has filed the original return of income on 31.10.2005 declaring 'nil' income. A search was conducted under section 132 of the Income Tax Act on 14.12.2005. Later, a notice under section 153 C of the Act was issued on the appellant, however, there was no seizure of the appellant and no unaccounted assets were found. The appellant was required to file return of income within 15 days of the receipt of notice and the same was filed on 18.10.2007 admitting 'nil' income. Thereafter, a notice under section 143(2), dated 26.10.2007 and a notice under section 14....

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....income at 'nil'. 3. The Commissioner of Income Tax (Appeals) dismissed the appeal field by the appellant and the appellate authority was of the opinion that when once a capital gain is computed in relation to sale of a capital asset notwithstanding its being in the nature of a business asset, the same cannot be allowed to be set off against unabsorbed brought forward business loss within the meaning of the provisions of Section 72. Regarding the eligibility of getting the unabsorbed depreciation pertaining to the assessment year 1997-98 to 2000-01 set off against short-term capital gain computed by the Assessing Officer under section 50 of the Income Tax Act, the appellate authority chose to follow the order of the Tribunal refer....

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....the Assessment Year 2005- 06?" 6.1 Mr. R. Sivaraman, learned counsel appearing for the appellant submitted that he is not making any submission with regard to questions of law Nos. 1 and 2 and therefore, this court need not give any finding with regard to the same in this Tax Case. The learned counsel made his submission only with regard to 3rd question of law i.e. with regard to unabsorbed depreciation relating to assessment year 1997-98 to 2000-2001 is not eligible for set off against any income of the appellant for the Assessment Year 2005-06. 6.2 The learned counsel further submitted that the Hon'ble Division Bench of this court, in identical circumstances, in the Judgment reported in 2009 (318) 187 (Madras) [Commissioner of I....