2008 (3) TMI 328

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.... delivered by 1. K. RAVIRAJA PANDIAN J. - The  appeal is filed against the order of the Income-tax Appellate Tribunal, Madras "C" Bench, dated February 2, 2007, made in I. T. A. No. 1964/Mds/2003 for the assessment year 2000-01. 2. The facts of the case culminating in filing of the above appeal culled out from the statement of facts contained in the memorandum of appeal go as follows : ....

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....w. "Whether, in the facts and circumstances of the case, the Tribunal was right in allowing the set off of prior years business loss and unabsorbed depreciation against short-term capital gains?"  5. We heard the argument of the learned counsel appearing for the Revenue, who in all his fairness submitted that the question of law framed in this appeal is covered against the Revenue in th....

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....or the same assessment year. In the event of depreciation allowance of the year is unable to be absorbed by any other business income or from income under other head in the same assessment year, the remaining unabsorbed  depreciation allowance shall be carried forward to the following year and (a) unabsorbed allowance shall be set off against the profits and gains of any business carried by a....

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....tion brought forward as on April 1, 1997, could still be set off against the taxable business profit or income under any other head for the assessment year 1997-98 and seven subsequent years vide [1996] 222 ITR (St.) 36. Circular of the Central Board of Direct Taxes No. 762, dated February 18, 1998 ([1998] 230 ITR (St.) 12) also clarifies the issue to the following effect (page 27): "Sub-sectio....