78. Treatment of losses, etc.

(1) Notwithstanding the provisions of section 307 of the Income Tax Act, 1967, and section 16(2) of the Corporation Tax Act, 1976 -

(a) as respects a loss incurred by a person in a petroleum trade, relief shall not be given -

(i) under the said section 307, against any income other than income arising from petroleum activities, or

(ii) under the said section 16(2), against any profits other than petroleum profits,

and

(b) relief shall not be given -

(i) under the said section 307, against income arising from petroleum activities, or

(ii) under the said section 16(2), against petroleum profits,

as respects any loss, other than a loss incurred in a petroleum or a mining trade, incurred by a person.

(2) Notwithstanding section 310 of the Income Tax Act, 1967, and section 19(1) of the Corporation Tax Act, 1976, the amount of any income of a person which is within the charge to tax under Case IV of Schedule D, and which is income arising from petroleum activities, shall not be reduced