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TMI Blog2017 (5) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... e has raised the following Grounds of appeal:- 1. "Whether, on the facts and the circumstances of the case and in law, the Ld. CIT(A) is justified in allowing the set-off of carried forward business losses against the Short Term Capital Gains in view of provisions of Section 72 of the IT. Act" 2. "Whether, on the facts and the Circumstances of the case and in law, the Ld. CIT(A) was correct in allowing expenses of professional fees, ROC, Audit fees and Tax Audit fees of Rs. 1,18,772/- against income from other sources even though there was no business activity during the year and ROC expenses claimed pertains to prior period." 3. "The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed the claim of the assessee. The CIT(A) observed that section 72 of the Act permits set-off of the brought forward business losses against the gains of business and that there was no requirement that such gain ought to be taxable under the head 'profits and gains of business or profession'; and, that so long as the gain is on account of any business carried on by the assessee, such set-off could not be denied. In coming to such a decision, the CIT(A) has relied upon the decision of the Mumbai Tribunal in the case of Digital Electronics Ltd. vs. CIT(2012) 49 SOT 65 (Mum). Against such a decision of the CIT(A), Revenue is in appeal before us. 4. Before us, the Ld. Departmental Representative reiterated the stand of the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses is not assessable under the head 'profits and gains of business and profession'. Quite clearly, section 72(1) of the Act does not prescribe that in the year of set-off the income in question be assessable under the head 'profits and gains of business or profession' and thus, considering the phraseology of the section, it would be sufficient if such income is of the business or profession carried on by him. Therefore, the objection of the Assessing Officer that the gain on sale of office premises was assessable as short term capital gain is of no avail to deny the set-off envisaged under section 72 of the Act because in commercial sense, the gain on sale of office premises represents profits of business. The said proposition was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 1,18,772/- incurred by the assessee on account of professional fee, ROC expenses, audit fee and tax audit fee. The Assessing Officer denied the deduction for aforesaid expenses on the ground that there was no business income and assessee's only income is by way of interest, dividend and miscellaneous income which were assessable under the head 'income from other sources'. The CIT(A) has allowed the claim of the assessee. 8. On this aspect, we find that the CIT(A) has noted that the impugned expenses are statutorily required to be incurred and, therefore, the same was allowable. In our considered opinion, the CIT(A) made no mistake in allowing the claim of the assessee because even in the absence of regular business activity, such exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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