Dismissing the appeal of the revenue the Tribunal held that, brought forward business loss and brought forward long term capital loss can be set off against short term capital gain arising as per section 50 on sale of factory building being a depreciable asset. Followed CIT v. Manali Investments [2013] /219 Taxman 113 (Mag.)(Bom.) (HC). (AY. 2011-12)
ITO v. Smart Sensors & Transducers Ltd. (2019) 176 ITD 104 (Mum.)(Trib.)
S. 50 : Capital gains-Depreciable assets-Block of assets-Brought forward business loss and long term capital loss can be set off against short term capital gain computed under section 50 on sale of factory building being depreciable asset. [S. 72, 74]