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.
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.
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