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2017 (5) TMI 167 - AT - Income TaxSet off of carried forward Business losses against the Short Term Capital Gains - Scope of section 72 - Held that: - section 72 of the Act prescribes set-off of unabsorbed business loss against the profits and gains of any business or profession carried on by the assessee and assessable for that assessment year - the objection of the Assessing Officer that the gain on sale of office premises was assessable as short term capital gain is of no avail to deny the set-off envisaged under section 72 of the Act because in commercial sense, the gain on sale of office premises represents profits of business - the brought forward losses are eligible for set-off against short term capital gain on sale of office premises - decision of CIT(A) upheld. Allowance of expenses - professional fees, ROC, Audit fees and Tax Audit fees - Whether the Ld. CIT(A) was correct in allowing expenses of professional fees, ROC, Audit fees and Tax Audit fees of ₹ 1,18,772/- against income from other sources even though there was no business activity during the year and ROC expenses claimed pertains to prior period? - Held that: - the CIT(A) has noted that the impugned expenses are statutorily required to be incurred and, therefore, the same was allowable. In our considered opinion, the CIT(A) made no mistake in allowing the claim of the assessee because even in the absence of regular business activity, such expenses are required to be statutorily incurred and, therefore, the same are allowable against the assessed income - decision of CIT(A) upheld. Appeal dismissed - decided against Revenue.
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