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2021 (9) TMI 509 - AT - Income TaxComputation of Total Income - Mode and manner of set off of loss - loss from one head set off against other head of income - setting off the business loss against house property income, income from other sources and thereafter income from capital gains which is in accordance with the provisions of Section 71 - HELD THAT:- Admittedly, income tax provides for computation of income in order of preference starting from income under the head salary, Income under the head ‘income from house property’, and income under the head ‘long term capital gain’ and further income under the head ‘income from other sources' Therefore, in our considered view business loss should be first set off against income from house property and then followed by income from long term capital gain and further still unabsorbed loss remains, it should be set off against income from other sources. Therefore, we set aside appeal to the file of AO and direct him to recompute total income, after allowing set off of loss under the head income from business or profession in terms of our observations herein above - Appeal of assessee is treated as allowed for statistical purposes.
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