2022 (7) TMI 1574 - SCH - Income Tax

Revision u/s 263 - brought forward loss was allowed to be set off against the income from the capital gains of the assessee during the relevant assessment year though the same was not liable u/s 72 - ITAT set aside revision proceedings - HC 2021 (2) TMI 284 - BOMBAY HIGH COURT accepted the position that it is not the requirement of Section 72 of the said Act that such gain or profit must be taxable only under the head of profits and gains of business or profession . The carry forward business losses would therefore be set off against theshort-term capital gains on the sale of building plant and machinery. This is yet another reason not to accept the submissions of Ms. Linhares and to answer the substantial questions of law against the Revenue and in favour of the assessee. HELD THAT - Since the tax effect is Rs 75.17 lakhs and is below the threshold the Special Leave Petition is dismissed on that ground. Pending application if any stands disposed of.

Summary

**Supreme Court Judgment Summary:**In the matter before the Supreme Court, presided over by Hon'ble Dr. Justice D.Y. Chandrachud and Hon'ble Mr. Justice A.S. Bopanna, the Court addressed a Special Leave Petition. The petition was dismissed due to the "tax effect" being Rs 75.17 lakhs, which is below the prescribed threshold for such cases. Consequently, the petition was not entertained further. Additionally, any pending applications related to the case were also disposed of.