Long term capital gain

My assumption is, there is no capital gain on sale of asset. 

So, this cannot be considered under CG accounting is what I believe.

But, if the house is revalued, and, I am not sure about measurement of private properties, if the revaluation amount is more than it’s book value, then you have a capital gain. 

I just happened to go through this article which mentions that business losses can be set off against any other income, so, technically, if you have a revaluation gain on sale of your property, you can set off the business loss and hence, one will get exemption because setting off against non-tax exempt gains is possible it seems. Contact your auditor for further details.

One more thing, CG tax exemption is prevalent for three years from the date you sell your home. Maybe, you have to wait till that period and then clear off your business loss. 

Sale of property will be taxable under the head income from capital gain since house sold is a capital asset and has been transferred and there was a LTCG which has satisfied the charging section Sec45
Taxable Amount under CG
FVOC(house) =4600000
Cost. (house) = 2023000
(700000*289/100)
Long Term Capital Gain=2577000

2577000 will be taxable to Person

Now coming to loss incurred by son cannot be set off against that person gain because they both are different assesssee

Now suppose if the business loss would have been incurred by the the person who sold house rather then his son then in this case that person would have been elegible to set off business losses from Capital gain of sale of property
But not in this case

In Short that person has to pay tax under Capital gain Rs 2577000