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Showing contexts for: Amendment made in Kotak Mahindra Capital Co. Ltd., Mumbai vs Assessee on 20 June, 2012Matching Fragments
available only in relation to the proceedings pertaining to that year. He noted that the amendment made in sec.74(1) w.e.f. 1.4.2003 restricted the set off of the long-term capital loss only against long- term capital gain and since the said amendment was applicable to the year under consideration i.e. A.Y. 2003-04, the assessee was not entitled for the set off of brought forward long-term capital loss relating to A.Y. 2001-02 of ` 42,91,526/- against short-term capital gain of ` 2,21,91,308/- for the year under consideration i.e. A.Y 2003-
24. The first contention raised by the Ld. Counsel for the assessee is that the provisions of sec.74(1) as amended by the Finance Act, 2002 w.e.f. 01.04.2003 are applicable only in respect of long-term capital loss made in AY 2003-04 and subsequent years and the same cannot be relied upon to deny the claim of the assessee for set off of long-term capital loss made prior to AY 2003-04 against short-term capital gains of subsequent years as was permissible by virtue of the provisions of sec.74(1) prior to its amendment made w.e.f. 01.04.2003. In support of this contention, he has mainly relied on the language used in sec.74(1) as amended w.e.f. 01.04.2003 which reads as under:
applicable to the long-term capital loss relating to the period prior to AY 2003-04 and set off of such loss is therefore governed by the provisions of sec.74(1) as stood prior to the amendment made by the Finance Act, 2002 w.e.f. 01.04.2003.
29. At the time of hearing before us, the Ld. DR has referred to section 74 as it stood prior to amendment made w.e.f. 01.04.2003 which read as under:
"(1) Where in respect of any assessment year, the net result of the computation under the head "Capital gains" is a loss to the assessee, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and--
this contention of Ld. DR. In our opinion, the expression "and so on"
used in clause (b) of section 74(1). as existed prior to amendment made w.e.f. 01.04.2003, is sufficient to clarify that if the long-term capital loss cannot be wholly set off against long-term capital gain of the immediately succeeding year, the same shall be carried forward to the year following such succeeding assessment year and shall be set off against income if any under the head "capital gain" assessable for that assessment year. It appears that the Ld. DR while analysing the provisions of section 74(1), as existed prior to amendment made w.e.f. 01.04.2003, has ignored the important words "and so on" to contend that the said provisions are silent on set off in so far as the year following the succeeding assessment year is concerned and finding no merit in this contention of the Ld. DR, we reject the same.