Karnataka High Court Allows Set-Off Of Past Business Loss Against Gain From Sale Of Capital Asset: EY

The Legal Library section collates quality and in-depth reports on regulatory developments, court rulings and policy changes authored by India’s top law firms and consultants. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of law and policy..EY Report.This tax alert summarises a Karnataka High Court decision, dated February 23, 2021, in the case of Nandi Steels Ltd. versus ACIT (Taxpayer), wherein the issue was whether business losses of earlier years (past business losses) can be set off against capital gains which arose on sale of capital assets used for business purposes under the provisions of the Indian Tax Laws.The ITL provides for a mechanism of set off and carry forward of losses incurred in the course of business. As per the provisions of the ITL, past business loss can be set off only against profits and gains of any business or profession carried on by a taxpayer. Furthermore, any income on transfer of capital asset which is used for business purposes, is taxed under a separate head of capital gains, whereas income from regular business transactions is taxed under the head profits and gains from business or profession..Click on the attachment to read the full report:.DISCLAIMERThis alert does not constitute legal advice and is for information purpose only. This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Karnataka High Court Allows Set-Off Of Past Business Loss Against Gain From Sale Of Capital Asset: EY

Karnataka High Court Allows Set-Off Of Past Business Loss Against Gain From Sale Of Capital Asset: EY

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