GOURI PRASAD GOENKA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Tribunal has referred the following question of law to this court, under Section 256(1) of the Income-tax An. 1961 :

(2.) The year of assessment is 1972-73 for which the relevant accounting period was the year ending on October 17, 1971 (Dewali 2028 S. Y.). It appears from the statement of case that the assessee is a Hindu undivided family. For this assessment year, the assessee had, amongst, other incomes, income from capital gains on sale of property at 30, Tara Chand Dutta Street, Calcutta, amounting to Rs. 1,89,000. The Income-tax Officer set off against this income from capital gains of Rs. 1,89,000 the earlier year's loss under the head "Income from capital gains" brought forward amounting to Rs. 1,14,500 and on the balance amount of Rs. 74,500, the Income-tax Officer allowed deduction under Section 80T of Rs. 5,000 on the first Rs. 5,000 and 35% of the balance.

(3.) The assessee went up in appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner, while not accepting some of the claims in the appeal before him, accepted the assessee's claim that the deduction under Section 80T should be worked out on the capital gains for this year without first setting off the losses under the head "Capital gains" brought forward from the earlier years.