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2024 (1) TMI 601 - AT - Income TaxClaim of setoff of unabsorbed depreciation carried forward from earlier year against the income from short term capital gains - AO was not satisfied with the explanations and has dealt on the provisions of Section 32 & section 70 to 72 of the Act is of the opinion that the setoff claim cannot be allowed - AR emphasized on the provisions of Section 71 & 72 of the Act and the methodology adopted in setoff of current year losses and carried forward/brought forward business loss and unabsorbed depreciation - HHELD THAT:- As relying on Bond Safety Belts [2023 (10) TMI 138 - BOMBAY HIGH COURT] unabsorbed depreciation carried forward from earlier years to set off against the short term capital gains. Accordingly, fallow the judicial precedence, and set aside the order of the CIT(A) and direct the Assessing officer to allow the claim of setoff of unabsorbed depreciation carried forward from earlier year against the income from short term capital gains. AO is directed to compute interest u/sec 234D & u/sec 244A of the Act in accordance with the provisions of the Act. And the grounds of appeal are allowed in favour of the assessee.
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