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2013 (7) TMI 417 - HC - Income TaxApplication of Section 70 and 74 - set off of losses - Exemption u/s 50EC - priority - Whether provisions of Section 70 can only be applied when computation of capital gain is done first - Held that:- Insertion of Section 54EC is only a substitute in the place of Section 54EA and Section 54EB to cover cases of transfer of long term capital asset on and from 2001 - As per Section 54EC(1)(a) on the capital gains arising from the transfer of long term capital asset invested in accordance with the said Section, capital gains shall not be charged under Section 45 - Section 54EC does not specifically mention about specified nature of transfer or of any specified long term capital asset - It merely speaks about the "capital gain arising out of a long term capital asset". A reading of Section 70(3) shows that the loss that has to be looked at first is not with reference to the loss arising in respect of any new capital asset, but in the totality of the loss suffered on the sale of capital asset chargeable to tax under Section 45 - Section 54EC is specific with reference to investment in specified bonds as regards the capital gain arising from and out of a long term capital asset. For taking benefit under Section 54E, it is not necessary that one should first apply Section 70(3) and thereafter only, the assessee could invest the capital gain arising from the long term capital asset to any specified bond as specified under Section 54EC - Decided against Revenue.
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