2025 (6) TMI 1943

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....orward of unabsorbed depreciation allowance? 2. Whether the Appellate Tribunal is right in law and acted within its powers in deciding an issue which was not raised by the appellant (the Revenue) in its grounds of appeal before the Tribunal? 3. Whether the Appellate Tribunal is right in law in not adjudicating the appellant's claim for set off of brought forward business loss against short term capital gains on depreciable business assets computer under Section 50 an issue decided in assessee's favour by decisions of the the Hon'ble Supreme Court and this Hon'ble High Court?" 2. Shri Kumar, counsel for appellant, relying on an order of a Division Bench of the Bombay High Court, in which one of us was a member, (Chief Ju....

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....ile computing the total income assessee had set off the earlier years unabsorbed depreciation and carry forward of business loss against this capital gain. The Assessment Officer had allowed set off of unabsorted depreciation against short term capital gain as an admissible adjustment but disallowed set off of carry forward of business loss against either short term capital gain or long term capital gain. 2. Aggrieved by this order of the Assessment Officer, Respondents preferred an appeal under Section 246 A (1) (B) of the Act before the CIT (Appeals). CIT (Appeals) passed an order dated 26th November, 2007 dismissing the appeal. According to CIT (Appeals) the capital gains cannot be set off only against the business income in view of th....

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....aw the Hon'ble Tribunal was justified in allowing the set-off of brought forward business loss u/s. 72(1) of the Income-tax Act, 1961 against the deemed short-term capital gain assessed u/s.50 of the Income-tax Act, 1961? 4. Section 72 sub section 1 of the Act reads as under: "72(1) Where for any assessment year, the net result of the computation under the head "Profits and gains of business or profession " is a loss to the assessee, not being a loss sustained in a speculation 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 section 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....