Can short term capital gain u/s 50 of I.T.Act,1961 arising from sale of depreciable assets be set off against brought forward business loss?
Yes, the short term capital gain u/s 50 of I.T. Act, 1961 arising from sale of depreciable assets be set off against brought forward business loss.
This has been held in the case of HIGH COURT OF MADRAS Bojaraj Textile Mills Ltd vs. Assistant Commissioner of Income-tax dated 17.06.2025
On the basis that since profit or gain to extent of recouped depreciation was in substance business income, assessee was entitled to such set-off, concept of substance over form has been used.
The copy of the order is as under:
