Daily Archives: June 24, 2013


CIT v Pursarth Trading Co. (P.) Ltd. [IT Appeal (L) No. 123 of 2013] dtd March  13, 2013 (Bombay High Court) Background: The assessee sold its office premises and secured long term capital gains. However, being a depreciable asset computed its gains in terms of Section 50 of the Income-tax Act, 1961. The Assessing Officer disallowed the claim of the assessee to set off its carry forward long term capital loss against the long term capital gains made under Section 74 of the Act in view of Section 50 of the Act. The Commissioner of Income Tax (A) upheld the order of the Assessing Officer.

Long Term capital loss can be setoff against Short Term gain u/s 50 (if the ...