- (1.) The Income-tax Appellate Tribunal, Allahabad, has referred the following question under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion to this court : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the assessee is entitled to the relief under Section 80T on the entire amount of long-term capital gains arising from the sale of building and not on the net amount of long-term capital gains, arrived at after setting off the long-term capital loss on the shares arising during the same previous year ?"
(2.) The reference relates to the assessment year 1982-83. Briefly stated, the facts are that the assessee had earned capital gains on the sale of immovable property of Rs. 5,15,125. He also suffered capital loss on the sale of shares at Rs. 92,640. The net capital gains thus after adding the income from property amounted to Rs. 4,28,085. The Income-tax Officer allowed the relief under Section 80T of the Act on the net income. However, in further appeal, the Tribunal has accepted the claim of the respondents and it held that relief under Section 80T of the Act is admissible on the entire amount of capital gain arising from the sale of building after allowing long-term capital loss on the shares, which arose during the same year.
(3.) Heard Sri Shambu Chopra, learned counsel for the Revenue and Sri V.K. Rastogi, learned counsel for the assessee.;