2025 (1) TMI 1479

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....ate For the Revenue : Shri R.R. Makwana, Addl. CIT ORDER PER SAKTIJIT DEY, V.P.: 1. This is an appeal by the assessee against order dated 20.08.2024 passed by National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year (AY) 2022-23. 2. The short issue arising for consideration in the present appeal is, whether brought forward business loss can be set off against deemed sho....

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....s rejected by the CPC. 4. Challenging such rejection, the assessee preferred an appeal before the First Appellate Authority. While deciding the appeal, the First Appellate Authority, referring to Section 72 of the Act, held that brought forward business loss can be set off only against the profit and loss of business and profession assessable for that assessment year and it cannot be set off in....

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....upra), the Revenue, has accepted the decision of the ITAT in Digital Electronics Ltd. (supra). Based thereon, this Court has accepted the position that it is not the requirement of section 72 of the said Act that such gain or profit must be taxable only under the head of "profits and gains of business or profession". The carry forward business losses would therefore be set off against the short-te....