Setoff of business loss with gain on depreciable assets - Income Tax

Dear friends, I have query related to Income tax. My client is having loss carry forward to the extent of Rs.1crore as business loss and Rs.5 lac as Unabsorbed depreciation loss. Next year he sold land and building for Rs.6.5 crore. Out of which building sale value Rs.4.5 crore. Now my question is whether carryover unabsorbed deprecation loss can be setoff against gain on sale of building, since building is depreciable asset. Similarly whether business loss carryover can be setoff against this gain on depreciable asset and long term capital gain. Pls advice