9911796707
TMI Blog1993 (3) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... to this court under section 256(1) of the Income-tax Act, 1961 ("the Act", for short) : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that for computation of income under the head 'Capital gains' deduction under section 80T of the Income-tax Act, 1961, is to be given before giving deduction under section 54E of the Act ?" The assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide the manner of calculation made by the assessing authority by holding that "section 80T deduction would be allowed on the capital gains before the exemption under section 54E is allowed". The Appellate Tribunal confirmed the findings of the Appellate Assistant Commissioner. Section 45 of the Act, as it stood in the relevant year, provides that, save as otherwise provided in sections 53, 54, 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income of an assessee not being a company includes any income chargeable under the head "Capital gains" relating to long-term capital asset, there shall be allowed, in computing the total income of the assessee, a deduction from such income as is provided thereunder. This being the position, for the application of section 80T, there must be an income chargeable under the head "Capital gains" r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ole of such income is not exempt, the assessing authority shall determine the income chargeable under the head "Capital gains", and, thereafter, there shall be deduction as provided under section 80T, that is to say, if there is no such income chargeable to tax after exemption under section 54E, the application of section 80T does not arise. For the reasons stated above, section 54E shall be app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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