S. 72: Gains arising from “business assets” not eligible for set-off against B/fd business loss

Nandi Steels Ltd vs. ACIT (ITAT Bangalore Special Bench)

The assessee sold land & building used for business purposes. Though the gain was offered as capital gains, the assessee claimed, relying on Cocanada Radhaswami Bank Ltd 57 ITR 306 (SC) and other judgements, that as the assets were “business assets”, the gains there from were eligible for set-off against the brought forward business loss u/s 72. The issue was referred to a Special Bench. HELD by the Special Bench against the assessee: