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TMI Blog2004 (5) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... e other than capital gains (i.e., against income from other sources also) even if there is income from capital gains?" - We answer both the questions in the negative, i.e., in favour of the Department and against the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... unal has allowed the claim of the assessee holding that since the short-term capital loss was not capable of being set off against long-term capital gains under section 70(2)(i), section 71(3) would get attracted and it would enable the assessee to be entitled to have the loss set off against "income from other sources". The Tribunal was of the view that two separate rights had been conferred on the assessee under section 70(2)(i) and section 71(3) of the Act. The construction beneficial to the assessee should be adopted. Heard learned counsel for the parties. Mr. Anuroop Singhi, learned counsel for the Department, submits that under section 70(2)(i) where the result of the computation made for any assessment year under sections 48 to 55 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital assets." It is made clear that if the assessee has suffered loss on account of short-term capital asset, he can set off that loss against the income under the same head. Clause (i) of sub-section (2) further provides that loss on account of short-term capital asset that can be set off against the income from any other capital asset. Sub-section (3) of section 71 provides that where in respect of any assessment year the net result of the computation under sections 48 to 55 in respect of capital gain is a loss and the assessee has income assessable under any head of income other than "Capital gains", the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at loss could not be set off under the income in the same head, the balance can be set off from the head of income other than "capital gains" as the income from capital gains has already been set off and even then, the entire loss cannot be set off, then the balance of short-term capital loss or long-term capital loss can be set off against the head of the income other than the "capital gains". If we read sections 70 and 71 with section 14 of the Act, then there is no ambiguity in the provisions of the Act for set off of loss. If there is short-term capital loss or long-term capital loss, that can be set off against the short-term capital gains or long-term capital gains. The balance of short-term capital loss or long-term capital loss can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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