2020 (8) TMI 320

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.... in sustaining the action of the AO regarding disallowing the benefit of carry forward of long term capital loss of Rs. 14,76,729/- on the sale of shares for the current year.'' 2.1 Rival Contentions have been heard and records perused. The facts in brief are that the assessee is an individual and filed his return of total income on 29-08-2015, declaring income of Rs. 74,69,570/-. During the year under consideration, the assessee sold a commercial property being a showroom for a total consideration of Rs. 1,40,00,000/-. The indexed cost of acquisition was Rs. 36,74,643/-. The expenditure in connection with transfer of property was Rs. 24,165/- and thus the long term capital gain from sale of property was Rs. 1,03,01,192/-. The amount of ....

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.... of Sections 45(1), 54F and 70 of the Income-tax Act, relevant to the assessment years read as follows:- "45(1) Capital gains.-Any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 54, 54B, 54D, 54E, 54 EA, 54EA, 54 EB, 54F, 54G and 54H, be chargeable to income tax under the head "capital gains", and shall be deemed to be the income of the previous year in which the transfer took place. "54F. (1)[Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter....

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....tal 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 respect of any other capital asset. (3) Where the result of the computation made for any assessment year under sections 48 to 55 in respect of any capital asset (other than a 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 respect of any other capital asset not being a short term capital asset.'' Thus as per provisions of section 54F (1) on fulfilment of certain conditions th....