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2019 (4) TMI 1159 - AT - Income TaxSet off of brought forward business loss and brought forward long term capital loss against the deemed short term capital gain computed u/s 50 - CIT-A allowed the claim - HELD THAT:- High Court in M/S. MANALI INVESTMENT [2013 (12) TMI 333 - BOMBAY HIGH COURT] has considered the issue of allowance of set off of long term capital loss in terms of section 74 of the Act against the short term capital gain computed u/s 50. Hon’ble High Court has observed that by virtue of Section 50 of the Act, only the capital gains is to be computed in terms thereof and be deemed to be short-term capital gains and this deeming fiction is restricted only for the purposes of Section 50 of the Act but the benefit of set off of long term capital loss under section 74 of the Act is to be allowed. Hon’ble High Court has also followed its decision in the case of CIT vs.. Ace Builders (P.) Ltd, [2005 (3) TMI 36 - BOMBAY HIGH COURT] As regards to set off of business loss against gain on sale of depreciable asset of factory building by the assessee, We find that the co-ordinate Bench of the Tribunal in the case of M/s. Raj Shree Roadlines vs ITO [2013 (3) TMI 811 - ITAT MUMBAI] for A.Y . 2007-08 has considered the issue of business loss of unabsorbed depreciation and eligible business loss can be set off against short term capital gain computed u/s 50 of the Act. We find that the Tribunal after considering the provisions of section 32(2), 72(2) and 73(3) of the Act opined that while deciding the issue of carrying forward of loss/unabsorbed depreciation and the amendment made in these section from time to time are applicable for carrying forward of depreciation/loss with effect from 1.4.2002. In the case of Manali Investment [2013 (12) TMI 333 - BOMBAY HIGH COURT] wherein, it is held that short term capital gain computed under section.50 of the Act can be set off against brought forward capital loss and also brought forward business loss. Accordingly, we are of the considered view that the CIT(A) has rightly allowed the claim of the assessee and we affirm the same - Decided against revenue
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