Law:

Section:

section 80t, read with section 70(2)(ii), of the income-tax act, 1961-deductions-long-term capital gains-whether deduction was allowable on the sum total of gains/losses on sale of various capital assets and not an only gains from certain assets, ignoring losses from other assets-held, yes Facts The assessee sold two long-term capital assets, viz., equity shares and vacant land. She incurred a loss on the sale of shares but made a gain on the sale of the land, the net result of the two transactions, however, being a loss. Her claim for relief under section 80T in respect of the capital gains on sale of land taken as a separate transaction, was rejected by the ITO. The Tribunal, however, allowed the assessee's claim. On reference : Held The relief under section 80T is exigible not on individualised items of long-term capital gains but on income chargeable under the head 'Capital gains' relating to capital assets other than short-term capital assets. The income, which is chargeable under the sub-head 'long-term capital gains' would really include the sum total of the long-term capital gains derived from the sale of individual capital assets. But, before arriving at the figure so chargeable, one will have to set off the long-term capital losses, as against the long-term capital gains, as required under section 70(2)(ii). In the instant case the net result of the computation under this sub-head was a loss ; consequently, there could be no question of any relief under section 80T for the simple reason that it contemplates a positive income chargeable under the sub-head. The Tribunal had, therefore, erred in holding that relief under section 80T was to be allowed on the capital gains on the sale of land and the balance was to be set off against the capital loss arising from the sale of shares. JUDGMENT BALASUBRAHMANYAN, J. - In this case, the assessee claimed relief under section 80T of the Income-tax Act, 1961 ('the Act'). This section grants relief to an assessee, other than a company, where the gross total income includes "any income chargeable under the head 'Capital gains' relating to capital assets other than short-term capital assets". In the present case, the…

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