1979 (2) TMI 192

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....ection 80T on the gross amount of capital gains and not on the net amount after set off of carried forward capital loss of earlier years ? " The assessee, who is an individual, was assessed for the assessment year 1973-74. She had a sum of Rs. 38,780 as long-term capital gains. In computing the relief due to the assessee under the provisions of s. 80T, the assessee took capital gains at Rs. 38,780 and after deduction of the exemption of Rs. 5,000, under s. 80T, there was a balance of Rs. 33,780, and, according to the assessee, the fifty per cent. rebate that is provided under s. 80T should be on this sum of Rs. 33,780. The ITO did not agree with this submission. He accepted the figure of capital gains as Rs. 38,780, but adjusted as again....

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....ting to capital assets, being buildings or lands, or any rights in buildings or lands, exceed five thousand rupees ; (ii) fifty per cent. of the amount by which the long-term capital gains relating to any other capital assets exceed five thousand rupees : . . . . . . . . . " It is unnecessary to reproduce the rest of the provisions. The expression " gross total income " occurring in the above provision is defined under s. 80B(5) as follows :                 " ' Gross total income ' means the total income computed in accordance with the provisions of this Act, before making any deduction under this Chapter or under section 280-O. " The contention f....

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....urt held that in computing the profits of the assessee for the purpose of the special deduction provided under the above provision, items of unabsorbed depreciation and unabsorbed development rebate carried forward from earlier years will have to be deducted before arriving at the figure from which the 8 per cent. contemplated by the above provision is to be deducted. The Supreme Court did not approve of a decision of this court in CIT v. L. M. Van Moppes Diamond Tools (India) Ltd. [1977] 107 ITR 386. The only difference between s. 80E considered by the Supreme Court and s. 80T now under consideration, is that in s. 80E itself the definition, which is now provided in s. 80B(5), was incorporated. In other words, the expression " as comput....