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TMI Blog1992 (5) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... capital loss against the long-term capital gains and allowed relief to the assessee on the balance of the long-term capital gains under section 80T of the Act. This was objected to by the assessee in the appeals filed against these assessments. The assessee contended that he would be entitled to relief under section 80T in respect of the entire amount of long-term capital gains without any set off of the short-term capital loss against such long-term capital gains. For this, he relied on the decision of the Madras High Court in the case of Addl. CIT v. K.AL.KR. Ramaswami Chettiar [1979] 120 ITR 694 wherein it had been held that the long-term capital gains after deduction of the initial expenses of Rs. 5,000 should have been taken into accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that all the relevant facts are already on the record placed before the ITO and the Dy. Commissioner (Appeals) and that the appeals may be disposed of on merits without requiring his presence. Accordingly, I have perused the orders of the departmental authorities, as well as the statement of facts and grounds of appeal filed by the assessee before the Dy. Commissioner (Appeals) and proceed to dispose of the same on merits after considering the same and the contentions urged on behalf of the Revenue. 4. In the present case, the assessee has realised long-term capital gains on sale of shares amounting to Rs. 4,992 during the previous year ended 31-3-1982 relevant for the assessment year 1982-83. During this year, he had suffered short-te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale of any other capital asset. This will be clear from section 70(2)(ii) which specifically provides for set off of long-term capital loss against long-term capital gains arising on the sale of any other long-term capital asset. The words used in section 70(2)(i) " against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset ", can only refer to short-term capital gains arising In the same assessment year on the sale of any other short-term capital asset. This expression cannot refer to long-term capital gains arising on the sale of long-term capital asset. The words " any other capital asset " in this provision of law refers only to any other short-term capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atachalam [1979] 120 ITR 688 (Mad.) at pages 691 and 692 :--- " In section 80T, the language of the statute is " where the gross total income of an assessee, not being a company includes any income chargeable under the head 'capital gains' ......... " We have to see what is the income chargeable under the head 'capital gains" under the Act. Section 45 provides that any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to income-tax under the head " capital gains". How this capital gain is to be computed is provided in section 48. The language of Section 48 is : " The income chargeable under the head 'capital gain' shall be computed by deducting from the full value of the consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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