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2018 (11) TMI 378 - AT - Income TaxCarry forward of unabsorbed business depreciation as per computation of income filed alongwith original return u/s 139(1)- Business loss set off against income from short term capital gain - Held that:- As observed that assessee has paid 10% tax on long-term gain on which STT has not been paid per provisions of section 112 of the Act. Thus subsection 2 of section 71 is applicable to the facts of the present case as assessee has a positive income under the head capital gains (including long term and short term capital gains). Is on a careful reading of sub section 2 of section 71, it is apparent that there is no restriction imposed on exercising option of setting off of business loss against income under the head capital gains (either long term capital gain or short term capital gain). The facts of the present case assessee has also exercised its right under section 112 of the act and has paid 10% tax on the long term capital gains, and therefore what remains to be adjusted against the business loss is the short term capital gains amounting to ₹ 10,58,675/-. The balance unabsorbed business loss amounting to ₹ 1,29,10,486/- has been carried forwarded by assessee. We do not find any infirmity in the above computation and carry forward of business loss which is in consonance with the provisions of the act We therefore do not agree with computation adopted by Ld.AO - we direct AO to allow carry forward of unabsorbed business depreciation as per computation of income filed alongwith original return under section 139(1) of the Act. - Decided in favour of assessee
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