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2010 (3) TMI 880 - AT - Income TaxLosses - Carry forward and set-off of business losses - Facts of the case, the assessee is a non-resident company and not subjected to tax on capital gains in this year in India. It is also not in dispute that the assessee has shown capital losses amounting to Rs. 87,06,49,335 in the return for the assessment year 2002-03 and has claimed the same to be carried forward to the subsequent assessment years. HELD THAT:- Applying the ratio of the law laid down by the Their Lordships in CIT v. Western India Oil Distributing Co. Ltd.[1997 (4) TMI 16 - SC ORDER], to the facts of the present case and keeping in view the CBDT Circular, we find that it is not the case of the revenue that the assessee has not brought forward losses to be carried forward to the subsequent year or the same have already been adjusted. In this view of the matter we are of the view that the assessee was fully justified in claiming the carried forward of brought forward losses of the earlier years to the subsequent years and the AO and the ld. CIT(A) have erred in not allowing the same. The AO is directed to allow the carry forward of brought forward loss of earlier years to the subsequent years according to law. The ground taken by the assessee is, therefore, allowed. In the result, assessee’s appeal stands allowed.
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