MAT

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Arvind Gattani (Querist)
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28 July 2009 An assessee has Short Term Capital Gain of Rs. 15,00,000 in A.Y. 2009-10. He has Brought Forward Short Term Capital Loss from A.Y. 2008-09. Can he set off loss against gain for the purpose of computing book profit u/s 115JB. Is there any provision as such in the Income Tax Act or any relevant case law. If yes, please let me know as soon as possible.

Abhishek Mohta

Abhishek Mohta (Expert)
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29 July 2009 sec 115JB refers to MAT. It provides the alternative way of computing profits and gains from business or profession if there is a loss as pe normal provisions.

However, STCG is not covered by the provisions of sec. 115JB.

The short term losses from a.y. 2008-09 can be set off against STCG of a.y. 2009-10 as per sec. 74.