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2017 (3) TMI 274 - HC - Income TaxSet off of brought forward business loss against deemed short term capital gains arising from sale of building and plant and machinery - Held that:- Tribunal correctly allowed the appeal of the assessee following the decision in Digital Electronics Ltd. v/s. Additional Commissioner of Income Tax [2010 (10) TMI 722 - ITAT, Mumbai] wherein held that under Section 72 of the Act, the loss under the head 'profits and gains of business or profession' can be carried forward and the same can be set off against profits of any business or profession. It is not the requirement of Section 72 of the Act that such gain or profit must be taxable under the head 'profit and gains of business or profession'. Thus carry forward business loss was set off against short term capital gains on sale of building. Set of brought forward unabsorbed depreciation - depreciation available to the assessee on the first day of April 2002 for the Assessment Year 2002-03 without the restriction of 8 years carry forward which was during the Assessment Years 1997-98 to 2001-02 allowed by ITAT - Held that:- Restriction of eight years as existing between Assessment Year 1997-98 upto 2001-02 to carry forward and set off the unabsorbed depreciation has been dispensed with effect from Assessment Year 2002-03. Consequently the unabsorbed depreciation as available on 1st April, 2001 will be allowable from the Assessment Year 200203 onwards. In the above view, as the issue stands concluded in favour of the respondent assessee by the decision of this Court in Hindustan Unilever Ltd. (2016 (7) TMI 1245 - BOMBAY HIGH COURT).
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