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2017 (8) TMI 1059 - ITAT DELHIAllowing carry forward and set off of unabsorbed depreciation from any head of income (except salary head) - A.O. has concluded that sale of depreciable assets is taxable as short term capital gain as per provision of section 50 thus brought forward business loss cannot be set off against short term capital gain - Held that:- The assessee has claimed the set off of depreciation from short term capital gain. However, the A.O. has wrongly understood the claim of set off of unabsorbed depreciation by the appellant, as set off of brought forward business loss and therefore, disallowed the claim. In these facts, the findings of the A.O. that the appellant has claimed set off of brought forward business loss, is not correct. It is also clear that the assessee has set off the unabsorbed depreciation, against short term capital gain in terms of section 32(2) r.w.s. 72(2) of the Act. In these facts and circumstances, the findings of the A.O. regarding set off of brought forward business loss, was not correct, hence, the claim of the assessee of brought forward depreciation against short term capital gain, is correct and accordingly, findings of the A.O., are erroneous, therefore, disallowance was rightly deleted and after set off of brought forward depreciation total income will be at NIL, as claimed by the assessee in the return of income, which does not need any interference on my part, hence, uphold the same and reject the issue involved in the present Appeal raised by the Revenue. - Decided in favour of assessee.
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