Law:

Section:

Section 80T, read with section 80B(5), of the Income-tax Act, 1961 [omitted with effect from 1-4-1988J - Deductions - In respect of long-term capital gains - Assessment year 1974-75 - Whether deduction under section 80T was allowable on net capital gains arrived at after its computation with reference to sections 45 and 48 and also after adjustment of capital losses brought forward from earlier years -Held, yes Facts In the assessment year 1974-75, the assessee made long-term capital gains on the sale of his share in immovable property for Rs. 2,78,250. The assessee also incurred capital loss on sale of certain shares. In addition, he had brought forward long-term capital loss from the assess-ment year 1966-67. He claimed deduction under section SOT on the entire amount of Rs. 2,78,250, but the ITO allowed deduction on Rs. 1,73,309 only. On appeal, the assessee's contention that section 80T was an independent section and by virtue of clause (b)( i) deduction should be given on gross amount and not on the net amount of capital gains, was accepted by the Commissioner (Appeals), who directed the ITO to recompute total income after giving deduction under section 80T on the capital gains before adjustment of capital losses. On further appeal, the Tribunal endorsed the order of the Commissioner. On reference: Held Section 80T which is included in Part C of Chapter VIA, provides that where the gross total income of an assessee includes any income chargeable under the head 'Long term capital gains', there shall be allowed, in computing the total income of the assessee, a deduction from such income of an amount as specified therein. Such deduction shall be allowed after the total income of the assessee is computed. The total income of the assessee has to be computed for the given assessment year according to the provisions of the Act. If the contention of the assessee that after the computation of the assessable capital gains accruing to the assessee for the year, deduction under section 80T has to be effected first and thereafter the setting off such net capital gain against carry forward capital loss of previous year has to be considered was accepted, in that event…

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