COMMISSIONER OF INCOME TAX Vs. M SESHASAYEE

JUDGEMENT

(1.) THE following question of law has been referred by the Appellate Tribunal under Section 256(1) of the I.T. Act, 1961:

(2.) THE assessee, who is an individual, was assessed for the assessment year 1973-74. She had a sum of Rs. 38,780 as long-term capital gains. In computing the relief due to the assessee under the provisions of Section 80T, the assessee took capital gains at Rs. 38,780 and after deduction of the exemption of Rs. 5,000, under Section 80T, there was a balance of Rs. 33,780, and, according to the assessee, the fifty per cent. rebate that is provided under Section 80T should be on this sum of Rs. 33,780. THE ITO did not agree with this submission. He accepted the figure of capital gains as Rs. 38,780, but adjusted as against it a sum of Rs. 11,395 determined as capital loss in an earlier year and available for adjustment in this year. He further deducted the sum of Rs. 5,000, which was the exemption available under Section 80T. This left a balance of Rs. 22,385 as capital gains and the 50 per cent. deduction available under Section 80T(b) was thus computed to be Rs. 11,192.

(3.) THE only difference between Section 80E considered by the Supreme Court and Section 80T now under consideration, is that in Section 80E itself the definition, which is now provided in Section 80B(5), was incorporated. In other words, the expression " as computed in accordance with the other provisions of this Act" found in brackets in Section 80E is now to be found in Section 80B(5). THE reasoning of the Supreme Court would thus directly apply to the present provision.