Set off of unabsorbed business losses against capital income arising through slump sale allowable

Gouranga Cement Pvt.Ltd. Vs DCIT (ITAT Kolkata)

It is undisputed fact that the assessee has the earned the long term capital income by way of transfer of the business assets such as factory building, Plant & Machinery, electric installation under the head slum sale.

Thus the nature of LTCG is in the nature of business profit & gains which is liable to be taxed under the head capital gain by virtue of the provisions of law.

But the nature of LTCG is business only.

In view of same we direct the AO to set off the business loss against the business income and remaining loss  should be set off against the LTCG.

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