He rejected the companytention of the assessee that for the purposes of the deduction under Section 80 T that figure of capital gains should be taken as it stood before set off of the capital loss of previous assessment years.
This appeal is preferred by the assessee by special leave.
The Appellate Assistant Commissioner allowed the assessees appeal.
the purpose of determining the amount on which such deduction was available to the assessee, the Income Tax Officer took into account the figure arrived at after setting off the capital loss of previous assessment years against the capital gains for the assessment year 1970 7 1.
He had brought forward a long term capital loss from previous assessment years to be set off thereagainst.
The High Court answered the question in the affirmative, that is to say, in favour of the Revenue and against the assessee.
The assessee claimed a deduction under Section 80 T of the Income Tax Act, 1961 hereinafter referred to as the said Act .
The Tribunal allowed the appeal.
The revenue preferred an appeal to the Income Tax Appellate Tribunal against the order of the Appellate Assistant Commissioner.
Arising out of the judgment and order of Tribunal, the following question was referred to the High Court of Kerala Whether under Section 80 T relief is to be given only for the amount of capital gains after the capital loss is set off?
The judgment of the High Court is reported in 129 ITR 156 1.
The Judgment of the Court was delivered by BHARUCHA, J. The assessee made long term capital gains during the accounting year relevant to the assessment year 1970 71.
