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Whether Brought Forward Losses Be Set Off Against Profit U/s. 50?

QUERY: A Ltd. has a brought forward losses of Rs. 1/- crore. During the F.Y. 2012-13, it has sold the depreciable asset being office premises which was purchased 5 years ago. The sale value is Rs. 5/- crore and the W.D.V. of said premise is Rs. 1/- crore.

A Ltd. wishes to adjust the brought forward business loss of Rs. 1/- crore against the deemed Capital Gain u/s. 50 relying on the Mumbai Tribunal decision in case of Digital electronics reported in 49 DTR 484.

The tax advisor of A Ltd. do not agree with the action of A Ltd. as regard the set off of business losses against the short term capital gain computed u/s. 50 in view of special bench decision in case of Nandi Steel reported in 134 ITD 73 (Bom.)
ANSWER: Click here to read the full answer of the expert

Yes, the income tax is one tax. Section 14 of the Act, classifies the taxable income under different heads for the purpose of computation of net income of the assessee. Though, for the purpose of computation of the income,

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