1986 (8) TMI 105

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....see is a HUF and the appeal relates to the assessment year 1977-78. For this assessment year, the assessee incurred a loss of Rs. 3,750 on sale of Poona Industrial Hotel, which was a short-term capital asset. This loss under the head 'Capital gains' arising from the transfer of a short-term capital asset (short-term capital loss) was sought by the assessee to be set off against income from dividen....

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....sment, subject to the deductions as laid down under section 80T of the Income-tax Act, 1961 ('the Act'). The revenue is aggrieved and has, therefore, come up in the present appeal before us. 3. The learned departmental representative, Shri Iyer, referred to clause (i) of sub-section (2) of section 70 of the Act which provides for the set off of the short-term capital loss against the capital ga....

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..... 5. We have carefully considered the submissions of the learned departmental representative, Shri Iyer, and the material on the record. The provisions of clause (i) of sub-section (2) of section 70 relied upon by the learned departmental representative, Shri Iyer, and the provisions of sub-section (3) of section 71 of the Act, are as follows : "70. (2)(i) Where the result of the computation....

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....ee who incurs a short-term capital loss is entitled to have the amount of such loss set off either against the income under the head 'Capital gains' whether arising from the transfer of a long-term or a short-term capital asset or against the income under any head other than capital gains. Where the assessee has been given two options without any restrictions, it is open to the assessee to exercis....