Capital gain exemption & loss

1. Intra(with In) Head Adjustment: Long term capital Gain loss can be adjusted against Long Term capital gain Only.
2. Inter(with other) Head Adjustment:Loss Under capital Gain Head Can not be adjusted against any other head.

in a recent judgement in case of---the TATA POWER CO LTD v ACIT

it was held that

Section 54EC deduction allowable before  set-off of brought-forward loss.

HI Sumit,

                What would happen if the asessee also has a current year LTCL? i mean whether the assesse should adjust the LTCL against The LTCG first & then take 54EC exemption or take the 54EC exemption from the LTCG and the adjust against LTCL.

Thanks

Case law as quoted by Sumit is as follows in detail for reference :

S. 54EC deduction allowable before set-off of brought-forward loss

The assessee earned LTCG of Rs.233 crores and claimed deduction of Rs.124 crores u/s.54EC on account of investment in specified bonds of NABARD. The assessee also had brought forward long term capital loss of Rs.111 crores. The assessee first claimed deduction u/s 54EC and then, against the balance, set-off the brought forward losses. The CIT revised the assessment u/s 263 on the ground that the long-term capital loss had to be first set-off against the LTCG and the deduction u/s 54EC was allowable only on the balance. On appeal by the assessee to the Tribunal, HELD allowing the appeal:

While s. 54EC is an exemption provision which exempts capital gains and takes them outside the purview of chargeable “capital gains”, s. 74 deals with the carry forward and set off of loss under the head “capital gains”. The stage at which set off of carried forward long term capital loss is to be given is subsequent to the stage at which income under the head capital gains is computed and deduction u/s 54EC is to be given in the course of the latter. Accordingly, s. 54EC deduction has to be given before set-off of losses.

I think, Vishal's query must have also got resolved from above case law discussion.

Thanks Jayesh & Sumit. However my question is same as that of Vishal's. The judgement cited speaks of adjusting Brought forward losses. However my question is related to adjustment of current year Long Term Capital loss.  

Will this judgement hold good in this case also?

Are there any contrary judgement to this?

Logically, in case of current year losses also, first exemption should be claimed , then set off loss

reason being------exemption is under head "capital gains", so first income inder head should be computed , then loss should be adjusted..

plz correct me if m wrng

I also agree with Sumit Ji.First exemption should be claimed , then set off loss

Please correct me also if i m wrong.

Dear Mr Sumit,

                           You mean to say that person having LTCG, first take exemption u/s 54EC then setoff the LTCL on the Balance amount left.