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Issues:
- Disallowance of claim for deduction under section 48(2) of the Income-tax Act from the share of long term capital gains. Analysis: 1. The assessee, a partner in a firm, claimed deduction under section 48(2) for long term capital gains in the assessment year 1992-93. The Assessing Officer did not consider this claim, resulting in the total income being determined without the deduction. The CIT(A) upheld this decision, stating that the deduction had already been allowed in the firm's assessment, so it cannot be claimed again at the partner level. 2. The assessee argued that under section 67(2), the partner's income should be apportioned in the same way as the firm's income, allowing for the deduction in the partner's assessment. The counsel contended that there was no provision barring this deduction in the Act for the relevant assessment year. However, the Tribunal noted that the deduction under section 48(2) is applicable during the computation of capital gains, not after the gains have been determined. 3. The Tribunal emphasized that section 48(2) allows deductions while computing capital gains, and there is no provision for a second deduction at the partner level. The legislative changes removing the previous bar against deductions under section 80T do not apply to section 48(2). The Tribunal held that the deduction under section 48(2) is only allowed once during the computation of capital gains from the transfer of a long-term capital asset. 4. Ultimately, the Tribunal upheld the CIT(A)'s decision, stating that the partner is not entitled to claim the deduction under section 48(2) on the share of capital gains allocated based on the firm's assessment computation. The appeal by the assessee was dismissed based on these findings.
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