2021 (3) TMI 623

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....ing of capital assets which were not converted into stock-in-trade and computed as per section 50C of the Act, 1961 in view of provisions of section 72 of the IT Act, 1961?" The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the ITO 9 (3) (1) be restored. 3. Brief facts of the case are that the Assessing Officer in this case observed that during the course of assessment proceedings assessee was asked to furnish the copy of computation of total income, copy of balance sheet, copy of profit and loss account etc. It is seen from the computation of total income that the assessee has set off short term capital gains arises out of sale of depreciable assets. That the assessee has not referred....

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....ation business, and such loss cannot be or is not wholly set off against income under any head of income in accordance with the provisions of sec. 71, so much of the loss as has not been so set off or where he has no income under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and - (i) it shall be set off against the profits and gains, if any, of any business or profession carried on by him and assessable for that assessment year;.... 4.1.3. After referring section 72 the appellant submitted that as per section 72 of the Act, the losses incurred under the head 'Profits and Gains of Business or Profession' which could not be....

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....m capital gains taxable u/s 50 arising out of sale of factory building and plant & machinery. It was chimed that though the income was taxable as capital gains, its character remained that of business income in as much as the gains arose on transfer of a business asset on which depreciation was allowed. 4.1.7. After considering the argument of revenue and assessee the learned Tribunal held as under: As per section 72, the losses incurred under the head 'Profits and Gains of Business or Profession' which could not be set off against income from any other head of income, have to be carried forward to the following AY and are allowable for being set-off against the profits, if any, of that business or profess....