Assessee-company, engaged in business of spinning of yarn and manufacture of knitted hosiery garments etc., had sold a parcel of land. Assessee offered income from sale of land as taxable income and claimed to set off unabsorbed depreciation that had remained unutilized from assessment year 1999-2000 against tax liability from aforesaid capital gains under section 32 read with section 72 Assessing Officer accepted claim of assessee. However, appellate authority disallowed claim for set off unabsorbed depreciation from assessment year 1999-2000 against capital gains in assessment year 2002-03.Tribunal upheld order of appellate authority. On appeal the Court held that  unabsorbed depreciation could be set off against profit and gains from business or any profession carried on by an assessee which is assessable for that assessment year and if same is not feasible against any other income from that assessment year.Therefore, unabsorbed depreciation from assessment year 1999-2000 could be set off against long term capital gains for assessment year 2002-03.Matter remanded.  (AY. 2002-03)