2016 (2) TMI 800

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..... We do not think that the view taken by all the three Authorities is contrary to law. It is true that under Section 71(2), the assessee may set off, against other income assessable for the assessment year under the head 'capital gains', the loss, if any, arising out of computation of different heads of income. But, Section 71(2) does not operate on a stand alone basis. As rightly observed by the T .....

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..... (ii) Whether on the facts and in the circumstances of the case, the Tribunal failed to appreciate that long term capital gains of domestic company is subject to tax independently under Section 112(1)(b) of the Act and the other income/ loss has to be assessed separately as its total income ? and (iii) Whether on the facts and in the circumstances of the case, the Tribunal was right in interpr .....

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..... of assessment. 4. Though the assessee contended that Section 71(2) uses the expression 'may' indicating that they have an option either to adjust or not to adjust the business loss against capital gains, the objection was overruled and an order was passed under Section 154 on 4.2.2005. The assessee filed a first appeal. The Commissioner dismissed the first appeal and the same was confir .....

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