1989 (9) TMI 78

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... epartment is : "Whether the set off of capital loss brought forward from the earlier year against the capital gain of the current year as contemplated under section 74 of the Act should be made only after the deduction contemplated under section 80T of the Act is made from such income ?" The assessee is an individual. The proceedings relate, to her assessment for the assessment year 1972-73. T .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... held that the taxable amount out of the long-term capital gains under section 80T should be determined first and the loss under the head "Long-term capital gains" from the earlier year should be set off thereafter. In the very nature of the scheme of the Income-tax Act, deductions under the provisions of Chapter VI-A which includes section 80T are to be made in computing the assessee's total inc .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... able under the head Capital gains ...... there shall be allowed, in computing the total income of the assessee, a deduction from such income of an amount equal to, - . . . . . " Therefore, section 74 is to be applied first before computation is to be made under section 80T. This is also the view taken by the Madras High Court in the decision relied upon by Dr. Balasubramanian, learned counsel fo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X