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Relief under Case VI of Schedule D in respect of losses.
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2.—(1) Where in any year of assessment a person sustains a loss in any transaction (being a transaction of such kind that, if any profits had arisen therefrom, he would have been liable to be assessed in respect thereof under Case VI of Schedule D) in which he engages, whether solely or in partnership, he may claim that the amount of the said loss shall, as far as may be, be deducted from or set off against the amount of profits or gains on which he is assessed under the said Case VI for that year and that any portion of the loss for which relief is not so given shall be carried forward and, as far as may be, deducted from or set off against the amount of profits or gains on which he is assessed under the said Case VI for the six following years of assessment.
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(2) In the application of this section to a loss sustained by a partner in a partnership, the expression “the amount of profits or gains on which he is assessed” shall, in respect of any year, be taken to mean such portion of the amount on which the partnership is assessed under Case VI of Schedule D as he would be required under the Income Tax Acts to include in a return of his total income for that year.
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