Long term shares

Page no : 2

VISHAL SINGH (Chartered Accountant) (71 Points)
Replied 02 November 2011

Kind attention: Mr Hardik

In CIT vs. Harprasad 99 ITR 118 (SC) it was held capital loss incurred in a year when capital gains were not exigible to tax cannot be set against capital gains in subsequent years. In Ramjilal Rais 58 ITR 181 (All) & Thiagarajan 129 ITR 115 (Mad) it was held that loss from sources that were exempt from tax cannot be set off. A contrary view has been taken in Royal Calcutta Turf Club 144 ITR 709 (Cal).

Kindly go through the above decisions.In my opinion ,major views are against you & according to natural justice if something which amounts to gain subject to fulfilment of conditions is exempt ,its losses cannot be held to be available for set off.

It also fulfills the famous saying TIT FOR TAT from the revenue side.

CA Hardik Bunha (self) (2121 Points)
Replied 08 November 2011

I appreaciate your views...........

but all my Friends can anybody display me?.... Where are those section(set off & Carried Forward) include exmept incomes?

Think Guys then Answer.......

It is a loop hole of Act. In this matter no tax applies but exempt gain should always carried forward and set off againt exempt loss till it comes to an end.

Some people think that why these exempt gain should be carried forward Right?