The assessee had incurred loss on sale of shares and units of mutual funds on which STT was paid. The assessee claimed to set-off said loss on shares against the capital gains arising out of the sale of land and accounted the net figure for purpose of capital gains. The Assessing Officer disallowed said claim on ground that the loss suffered by the assessee on the sale of a long-term capital asset was covered under section 10(38) and could not be set-off under section 70(3) since, the computation of such income or loss was not made under sections 48 to 55 of the Act. On appeal the CIT(A) and Tribunal up held the order. On appeal the Court held that since shares sold would come under section 10(38) and income from sale of shares would be excluded from computation of income of assessee, capital loss on sale of such shares could not be set off against long-term capital gains arising out of sale of land.  (AY. 2005-06)