No option has been given to assessee to carry forward business loss without setting off same against short term capital gain

IT: Addition made in respect of unsold property falling within block of assets could not be reduced while computing short-term capital gain on sold property
IT: No option has been given to assessee to carry forward business loss without setting off same against short term capital gain
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[2014] 48 taxmann.com 241 (Mumbai - Trib.)
IN THE ITAT MUMBAI BENCH 'E'
Sumaria Appliances (P.) Ltd.
v.
Assistant Commissioner of Income-tax, Ward 7 (2), Mumbai*
I.P. BANSAL, JUDICIAL MEMBER
AND RAJENDRA, ACCOUNTANT MEMBER
IT APPEAL NO. 2712 (MUM.) OF 2012
[ASSESSMENT YEAR 2007-08]
JUNE  11, 2014
Section 50 of the Income-tax Act, 1961 - Capital gains - Computation in case of depreciable assets (Addition to unsold asset) - Assessment year 2007-08 - In block of assets under head "buildings" assessee owned two premises, one of which was sold during year - Thereafter, certain addition was made to unsold premises - While computing short-term capital gain, assessee reduced amount of addition to unsold asset from sale price - Whether addition shown by assessee in respect of unsold property falling in block of assets could not be treated as expenditure incurred exclusively in connection with transfer of asset nor could it be said to be actual cost of any asset falling within block of asset acquired during previous year as it was a brought forward asset and, therefore, assessee was not entitled to get deduction of said amount while computing short-term capital gain - Held, yes [Para 6.2] [In favour of revenue]
Section 71 of the Income-tax Act, 1961 - Losses - Set off of from one head against income from another (Scope of provision) - Assessment year 2007-08 - Whether section 71(2) gives option to assessee to carry forward business loss separately without setting off income arising out of short-term capital gain - Held, no [Para 7.2] [In favour of revenue]