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2014 (2) TMI 1293 - AT - Income TaxDisallowance of Set Off of brought forward Business Loss against the deemed Short Term Capital Gains earned on Sale of Building and Plant & Machinery - Held that:- Assessee’s appeal is squarely covered by the decision of Digital Electronics Ltd. Vs. Addl. CIT [2010 (10) TMI 722 - ITAT, Mumbai] allowing the claim of the assessee for set off of brought forward business losses against short term capital gain as the income earned in the relevant year, although not taxable as 'profits and gains from business or profession' was an income in the nature of income of busiess nevertheless. The assessee was, therefore, indeed justified in claiming set off of business losses against the income of capital gains. - Decided in favour of assessee Set off of brought forward unabsorbed depreciation against the short term capital gain - Held that:- This issue is also covered in favour of the assessee by the case of General Motors India Pvt. Limited vs. Dy. CIT [2012 (8) TMI 714 - GUJARAT HIGH COURT ] held any unabsorbed depreciation available to an assessee on 1st day of April 2002 (A.Y. 2002-03) will be dealt with in accordance with the provisions of section 32(2) as amended by Finance Act, 2001. And once the Circular No.14 of 2001 clarified that the restriction of 8 years for carry forward and set off of unabsorbed depreciation had been dispensed with, the unabsorbed depreciation from A.Y. 1997-98 upto the A.Y. 2001-02 got carried forward to the assessment year 2002-03 and became part thereof, it came to be governed by the provisions of section 32(2) as amended by Finance Act, 2001 and were available for carry forward and set off against the profits and gains of subsequent years, without any limit whatsoever.- Decided in favour of assessee
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