TMI Blog1993 (4) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... referred for the opinion of the High Court, under section 256(1) of the Income-tax Act, 1961, reads as follows ( at page 689): "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the assessee was entitled, for the assessment year 1973-74, to relief under section 80T of the Income-tax Act, 1961, on an amount calculated in terms of the aforesaid provisions, with reference to the gross capital gains of Rs. 1,02,740 ? " The assessee, a Hindu undivided family, derived capital gains in sum of Rs. 1,02,740 during the previous year relevant to the assessment year 1973-74. It claimed deductions thereon under and as provided by section 80T of the Income-tax Act. The Income-tax Officer, however, ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for deductions in the case of long-term capital gains. Section 80T, in so far as is relevant, read as follows : " Where the gross total income of an assessee not being a company includes any income chargeable under the head 'Capital gains' relating to capital assets other than short-term capital assets ( such income being, hereinafter, 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 ". The language of section 80T is plain and unambiguous. It says, "(i) where the gross total income of an assessee (not being a company), (ii) includes any income chargeable under the head 'Capital gains' in the nature of long-term capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 48 has been totally recast with effect from April 1, 1993, by the Finance Act, 1992 ). The words " such income ", in our opinion, meant and referred to the capital gains and not the total income of the assessee. Learned counsel for the Revenue, Shri Shukla, pointed out that the High Court has, while answering the question referred against the Revenue, applied the principle of Cloth Traders (P) Ltd. v. Addl. CIT [1979] 118 ITR 243 (SC) while construing the words "such income". Inasmuch as the said decision has been overruled by this court in Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120, it is argued, the very basis of the High Court's judgment gets knocked out. In our opinion, the said argument is beside the poin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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