1976 (12) TMI 91

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..... duction of Rs. 91,859 under s. 80T of the Income tax Act, 1961 on the amount of 2,48,170 assessed under the head capital gains. The assessee raised an objection contending that the Income-tax Officer should have allowed deduction under s.80T of the capital gains of Rs. 7,13,700 instead of Rs. 2,48,170 which was arrived at after adjusting the loss under the head capital gains. The income tax Officer did not accept the assessee contention. On appeal the Appellate Assistant Commissioner following the order of the Income-tax Appellate Tribunal passed in the department's similar appeal for the assessment year 1970-71, upheld the assessee contention and held that the assessee was entitled to deduction under s. 80T of the Act on the amount of Rs. .....

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..... ing, herein after referred to as long-term capital gains), there shall be allowed, in computing the total income of the assessee a deduction from such income of an amount equal to,- (a) in a case where the gross total income does not exceed ten thousand rupees or where the long term capital gains do not exceed five thousand rupees, the whole of such long term capital gains? (b) in any other case, five thousand rupees as increased by a sum equal to. (i) thirty percent of the amount by which the long term capital gains relating to capital assets, being buildings or lands, or any rights in building or lands, exceed five thousand rupees; (ii) fifty percent of the amount by which the long term capital gains relating to any other capital asse .....

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..... long term capital gains relating to other capital assets, the deduction will be allowed in an amount equal to Rs. 5,000 + 50 percent... (as against 65 per cent under the old provision) of the amount by which such capital gain exceeds Rs. 5,000. These amendments came into force with effect from 1st April, 1972.'' A plain reading of the above provision clearly indicates that deductions admissible in respect of buildings and lands and other capital assets are to be calculated at different rates and should be computed separately. In the instant case, the assessee had derived capital gains of Rs. 7,13,000 on the sale of lands. In terms of s. 80T of the Act deduction as provided therein is clearly admissible on Rs. 7,13,000. We have, therefore n .....

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