COMMISSIONER OF INCOME TAX (CENTRAL) DELHI vs HARPRASAD & CO. (P) LTD.

The Supreme Court ruled that under the Income-tax Act, 1922, specifically Sections 12B and 24(2A) & (2B), a capital loss incurred in a year when capital gains were not taxable can still be carried forward and set off against future taxable capital gains. The Court emphasized that the definition of 'income' includes losses, and the carry forward of losses serves the purpose of offsetting against future profits. The appeal was allowed, affirming the Tribunal's decision that the capital loss could be utilized in subsequent years.