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2014 (7) TMI 511 - AT - Income TaxNon-set off of the brought forward business loss against the speculation income – Held that:- The Revenue’s objection to the assessee’s claim as misplaced - The section governing the carry forward and set off of business loss, other than of a speculation business, is covered by section 72 and not by section 73, which is only qua the carry forward and set off of speculation loss, i.e., loss of a speculation business, which stands, to the extent brought forward, already allowed set off by the AO – it would include speculation business as well, whether it is so by virtue of section 43(5) read with Explanation to s. 28 or Explanation 2 to section 73 - The brought forward business loss is to be allowed set off of against the speculation income assessable for the current year - the quantum of the brought forward loss liable to be set off is that assessed for the relevant years, and not that as returned - the figures of the brought forward business loss adopted by the assessee include (unabsorbed) depreciation as well – thus, the matter is remitted back to the AO – Decided in favour of Assessee.
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