TaxTMI 
TaxTMI 
1993 (4) TMI 10
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....es of the case, the Appellate Tribunal was justified in holding that the assessable capital gain would be only Rs. 1,81,671 computed in the manner set out in paragraph 14 of the order of the Tribunal ?" The assessee is a registered firm. The assessment year concerned is 1973-74, the relevant previous year being the financial year 1972-73. During the said previous year, the assessee sold shares held by it in several companies. From the sale of shares in three companies, it secured a gross long-term capital gain of Rs. 5,61,508. However, in the sale of shares in six other companies, it sustained a long-term capital loss in a sum of Rs. 96,583. The assessee computed the capital gains on the aforesaid transactions of sale of shares in the fo....
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....cated into long-term capital gains and short-term capital gains. In this case, the court is concerned only with long-term capital gains. Section 70(2)(ii) prescribes the manner in which the loss from sale of long-term capital asset is to be set off. According to the said provision, the assessee " shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under the similar computation made for the assessment year in respect of any other capital asset not being a short-term capital asset". Support for the said proposition was derived from the decision in CIT v. Sigappi Achi [1983] 140 ITR 448 (Mad). The correctness of the view taken by the High Court is questioned in this appeal. Shri T. A. Ramachan....
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....s of capital assets. They were of only one type, namely, shares. From the sale of certain shares, the assessee derived profit and from the sale of certain other shares, it suffered loss. The simple question is how to work out and apply the deductions provided by section 80T in such a case. For answering this question, it is necessary to notice the provisions of section 80T and section 70, as they stood during the relevant previous year. " 80T. Where the gross total income of an assessee not being company includes any income chargeable under the head 'Capital gains' relating to capital assets other than short-term capital assets (such income being, hereinafter referred to as long-term capital gains), there shall be allowed, in computing t....
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....rupees, (fifty per cent.) of the long-term capital gains relating to any other capital assets. "70. (1) Save as otherwise provided in this Act, where the net result for any assessment year in respect of any source falling under any head of income other than 'Capital gains' is a loss, the assessee shall be entitled to have the amount of such loss set off against his income from any other source under the same head. (2) (i) Where the result of the computation made for any assessment year under sections 48 to 55 in respect of any short-term capital asset is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in re....
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.... asset separately and apply the deductions separately. If the argument of learned counsel for the appellant is logically extended, it would mean that even the deduction of Rs. 5,000 should be applied in each case separately. Learned counsel, however, did not take that stand. He agreed that the standard deduction of Rs. 5,000 must be applied to the totality of the capital gains. At the same time, he says, the deductions provided in clause (b) should be applied separately to each asset. We have not been able to appreciate the logic behind the contention of learned counsel. This is not a case where the capital assets transferred consist of two types mentioned in sub-clauses (i) and (ii) of clause (b) of section 80T. They are only of one typ....