Set off of loss under the same head of income - (New) Section 108 / (Old) Section 70

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....ntained elsewhere in the Act. Accordingly: • if another provision expressly prohibits or restricts a particular set-off, that provision overrides Section 108(1); • Section 108(1) applies only where no contrary provision exists. This ensures harmony between the general rule and special exceptions. The provision applies independently to each tax year. Therefore:....

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....on 70(1) is subject to overriding provisions elsewhere in the Act. • Section 70(1) embodies the principle of intra-head adjustment of losses. • It permits an assessee to adjust the loss arising from one source of income against the profit earned from another source under the same head of income, thereby ensuring that tax is levied only on the net income under that head. ....

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....ain • This is because the section uses the expression "any other capital asset." • Allowing wider adjustment prevents hardship where the assessee incurs losses on short-term assets while earning gains on long-term assets. Section 70(3): Restriction on Set-off of Long-Term Capital Loss[ Section 70(3) ] • Section 70(3) governs the adjustment of long-term cap....

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.... it falls under the same head: • Losses from Speculation Business: Any loss in respect of speculation business cannot carried on by an assessee, shall be set off only against income of another speculation business. • Losses from the activity of owning and maintaining race-horses: It can be set off against the income of such activity and cannot be set off against the incom....