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The issue revolves around three major concerns, first whether all the expenditures incurred after transfer of leasehold rights are to be allowed as deduction. The Tribunal relying on the judgement of High Court of Karnataka in case of Lawrence D’souza held that even though the business had come to a halt but being a company all the expenditures incurred were necessary to maintain its legal status till the assets are liquidated and hence allowed as deduction. The second issue deals with whether a claim that the capital gain earned on sale of land and building is to be bifurcated separately as wrongly claimed by assessee in his return of income is to be allowed. The Tribunal held that CIT(a) has the power to examine the claim and remand the claim to AO if required, hence it was directed to AO to examine the claim placed before CIT(a). The third issue pertains to whether the profit on transfer of depreciable assets can be set off against unabsorbed depreciation. The Tribunal held that as the transfer led to short term capital gain, is in nature of business income and hence can be set off against the unabsorbed depreciation. [partly allowed in favour of assessee]