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2016 (11) TMI 1501 - AT - Income TaxAddition of transfer of lease hold rights in the property under section 50C - capital gain computation - Held that:- Issue under consideration is covered by the number of decisions of ITAT-Mumbai Bench in case of Atul G.Puranik [2011 (5) TMI 576 - ITAT, Mumbai] and Pradeep Steel Re-Rolling Mills (P) Ltd., (2011 (7) TMI 1101 - ITAT MUMBAI) wherein it was held that Section 50C applies only to capital assets being land or building or both, it does not in terms include leasehold rights in land or building within its scope. Allowing set off loss against “income from other sources” - AO’s initiated in allowing set of off loss against long term capital gains - Held that:- As per the provisions of Section 71(2), assessee is entitled to set off current year business loss against “income from other sources” since assessee was also having long term capital gains. Accordingly, we do not find any infirmity in the order of CIT(A) for allowing set off of loss in the very same year against income from other sources, so that assessee can enjoy special rate of 10% tax on long term capital gains, in terms of CBDT circular No.26 (LXXVI-3) (F.No.4(53)-IT/54).
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