Assessee is  engaged in business of developing and leasing out commercial properties either on short term or long term basis. Activity of leasing such constructed spaces was undeniably its core business activity.  During year, assessee adjusted brought forward business losses under head ‘profits and gains of business’ against ‘short-term capital gain’ arose from leasing of properties.  Assessing Officer allowed same  PCIT revised the order  on ground that set-off of brought forward business loss of earlier years against short-term capital gain of relevant year was irregular and, accordingly there was under charge of tax. Tribunal held that  properties constructed by assessee were its ‘business asset’ reflected as ‘fixed asset’  Undisputedly, income derived from leasing these fixed assets on short-term basis had all along been taxed as ‘business income’. Since income which was assessed by way of short-term capital gain bore character of profits or gains derived from leasing business of assessee, loss assessed under head ‘profits & gains of business or profession’ in preceding years was allowed to be brought forward and set-off against such ‘short-term capital gain’ derived from leasing business. (AY. 2017-18)