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TMI Blog1978 (2) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... Act ? " The assessee is an individual. He derived long-term capital gains on the sale of immovable property. The amount so computed as capital gains was Rs. 1,28,344. The assessee had incurred a short-term capital loss on sale of certain shares to the extent of Rs. 76,650. Both these amounts had to be considered in the assessment for the assessment year 1970-71. The ITO set off against the capital gains of Rs. 1,28,344 the short-term capital loss of Rs. 76,650 and applied the provisions of s. 80T with reference to the balance of Rs. 51,694. The relief available to the assessee was thus computed at Rs. 26,012 under the provisions of s. 80T. The assessee appealed to the AAC contending before him that the long-term capital gain of Rs. 1,28, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains relating to any other capital assets exceed five thousand rupees : Provided that in a case where the long-term capital gains relate to buildings or lands, or any rights in buildings or lands, as well as to other assets, the sum referred to in sub-clause (ii) of clause (b) shall be taken to be- (A) Where the amount of the long-term capital gains relating to the capital assets mentioned in sub-clause (i) is less than five thousand rupees, forty per cent. of the amount by which the long-term capital gains relating to any other capital assets exceed the difference between five thousand rupees and the amount of the long-term capital gains relating to the capital assets mentioned in sub-clause (i) ; and (B) Where the amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at case was that this 8% should be applied on the sum of Rs. 2,45,431 being the profit from the scheduled industry. The ITO, however, adjusted the carried forward loss which was liable to be set off under s. 72 of the Act and found that the assessee was not entitled to any deduction at all as there was no positive income in the relevant year to which s. 80E could apply. This court negatived the contention and held that so long as the total income as computed in accordance with the other provisions of the Act included any profits and gains attributable to the priority industries, the assesee would be entitled to a rebate of 8% on the said profits and gains attributable to such priority industries and that the question of set-off would come i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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