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2014 (9) TMI 353 - AT - Income TaxComputation of STCG on depreciable assets – addition of ₹ 29,77,989.21 was made by the assessee with regard to unsold property only after the date of sale i.e. after 20/4/2006. - reduction of such addition from STCG - Held that:- The addition shown by the assessee is in respect of unsold property falling in the block of assets - it cannot be an expenditure incurred wholly and exclusively in accordance with the transfer of the asset – it also cannot said to be the actual cost of any asset falling within block of asset acquired during the previous year as it is related to an asset which has not been acquired during the previous year and is a brought forward asset - assessee is not entitled to get deduction while computing short term capital gain as per provisions of section 50 – Decided against assessee. Entitlement of assessee to carry forward the business loss and was also entitled to get assessed capital gain separately without setting off the same against business loss – Held that:- there is no force in the claim made by the assessee. Firstly, sub-section (2) of section 71 does not give any option to the assessee to carry forward business loss separately despite there being income under the head capital gain. Section 71(2) contemplates a situation where in respect of any assessment year, the net result of computation under any head of income , other than "capital gain" is a loss and assessee has income assessable under the head "capital gains", in such situation, such loss may, subject to provision of Chapter VI (section 66 to 80), be set off, for and from assessment year 1992-93, against assessee’s income, if any, assessable for that assessment year under any head of income including the head "capital gains" (whether relating to short term capital gain asset or any other capital asset). Thus, provisions of section 71(2) cannot be construed to give option to the assessee to carry forward business loss separately without set off of income arising out of short term capital gain. Only on the basis of word "may" as appearing in section 71(2), such benefit cannot be granted to the assessee as has been sought by it. The language of the provision is clear. No option has been given to the assessee to carry forward loss under any other head to subsequent year without setting off of the same against short term capital gain. - Decision of Bombay High Court in the case of CIT vs. British Insulated Calender Limited [1993 (1) TMI 43 - BOMBAY High Court] distinguished – Decided against assessee.
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