Indian Tax Tribunal Allows Capital Loss on Flat Rights Surrender and Business Loss Set‑Off

The Income Tax Appellate Tribunal (ITAT) in Mumbai, hearing Ketan Pravinchandra Kamdar vs DCIT, held that the ₹26,93,950 received on surrender of flat allotment rights constitutes a capital asset. The tribunal allowed the taxpayer to claim a long‑term capital loss of ₹5,67,922, rejecting the assessing officer’s classification of the receipt as income from other sources and emphasizing that the nature of income must be determined from the surrounding facts, not merely the TDS provision.

In a separate decision by the ITAT Ahmedabad bench, Ambalal Sarabhai Enterprises Ltd. was permitted to set off brought‑forward business loss against short‑term capital gains computed under Section 50 arising from the sale of depreciable assets. The tribunal directed the assessing officer to verify the claim and grant the set‑off, citing precedents from the Bombay High Court and Karnataka High Court.