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TMI Blog2024 (9) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals), Pune ["CIT(Appeals)"] has erred in not allowing the legitimate set off of long-term capital loss of Rs. 15,72,530/- against Long Term capital gain of Rs 2,67,73,895/presuming that the said capital loss is a Business Loss. 2. The Learned CIT(Appeals) has treated the long - term Capital Gain of AY 20-21 which the assessee has set off against the brought forward Long -term capital loss of the previous years, as Business income and levied tax on such income. The CIT(Appeals) has erred on facts and in law by not allowing the legitimate set off of unabsorbed capital loss of earlier years against the income from capital gains u/s 74 of the Income Tax Act and disallowing the same under section 72(1) of the Income Tax Act. 2. Briefly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heard rival submission of the parties and perused the relevant material on record. The finding of the Ld. CIT(A) rejecting the set off of brought forward loss of Rs. 15,72,530/- is reproduced as under: "7.2 It is however seen that the appellant has claimed a set-off of brought forward business loss amounting to Rs. 15,72,530/- against the balance amount of current year's capital gains income of Rs. 1,82,90,006/-. In this connection, it is seen that as per the provisions of section 72(1) of the Act, the unabsorbed business loss can be carry-forward to subsequent assessment years and can be set-off against the business income only. Thus, the appellant cannot be allowed to set-off the brought forward business loss of Rs. 15,72,530/- aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any other capital asset; (b) in so far as such loss relates to a long-term capital asset, it shall be set off against income, if any, under the head "Capital gains" assessable for that assessment year in respect of any other capital asset not being a short-term capital asset; (c) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on.] (2) [ No loss shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed.] (3) omitted by Act 20 of 2002, Section 29 (w.e.f. 1.4.2003).] 3.3 In view of the above facts and circumstances, we restore this issue b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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