Law:

Section:

Section 80T of the Income-tax Act, 1961 - Deduction - Long-term capital gains - Assessment year 1971-72 - Whether, where in an assessment year an assessee suffered loss under head 'Short-term capital gains' and earned profit under head 'Long-term capital gains', deduction under section 80T should be allowed on gross amount of long-term capital gains prior to setting oil of short-term capital loss of same year - Held, yes Facts For the assessment year 1971-72, the assessee suffered loss under the head 'Short-term capital gains' and made profit under the head 'Long-term capital gains'. In the assessment the assessee claimed deduction as contemplated under section 80T in respect of long-term capital grains without setting it off first against short-term capital loss. The ITO, however, first set off the long-term capital gains against short-term capital loss and determined the loss under the head 'Capital gains'. The ITO further disallowed relief under section 80T on the ground that there was no long-term capital gains after adjusting short-term capital loss against it. On appeal, the AAC held that a sum of Rs. 5,000, being the statutory relief under section 80T, should be deducted from the long-term capital gains and the balance be set off against short-term capital loss. He, therefore, allowed the assessee's claim. On appeal by the revenue, the Tribunal upheld the order of the AAC. On reference: Held Where the gross total income of the assessee is a positive figure and even after set off of the short-term capital loss against other income there would be still a positive income, in such as case loss on short-term capital gains should not be set off first against the long-term capital gains so as to deprive the assessee of the relief available under section 80T( b). The position would be different when the gross total income is a negative figure. In the instant case, the ITO was not justified in deducting from the long-term capital gains, loss on short-term capital assets in determining the relief under section 80T(b). The Tribunal was, therefore, justified in allowing the assessee's claim. Case referred to Punjab Produce & Trading Co. Ltd. v. CIT [1986] 159…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492