2019 (11) TMI 1708 - AT - Income Tax

Assessee's Appeal Allowed: Set off Long Term Capital Gains/Loss

Asst. Commissioner of Income Tax, Versus Smt. Gauri Avinash Bhosale, Vice Versa

Asst. Commissioner of Income Tax, Versus Smt. Gauri Avinash Bhosale, Vice Versa - TMI Issues:Set off of Long Term Capital Gains against brought forward Long Term Capital Loss.Analysis:Issue 1: Set off of Long Term Capital Gains against brought forward Long Term Capital LossThe case involved two appeals by the Revenue and assessee against separate orders passed by the Commissioner of Income Tax (Appeals) for assessment years 2013-14 and 2012-13. The main issue in both appeals was whether the set off of Long Term Capital Gains (LTCG) against brought forward Long Term Capital Loss (LTCL) was permissible. The Assessing Officer initially denied the set off, considering the loss from the sale of shares as a dead loss. However, the CIT(A) upheld this view. The assessee argued that a similar case for assessment year 2013-14 had been decided in their favor by the CIT(A) and relied on a previous Tribunal order. The Tribunal referred to a Co-ordinate Bench decision and held that the assessee was entitled to set off the losses from Long Term Capital Gains against the gains from shares where security transaction tax (STT) was paid or payable. The Tribunal also cited a Mumbai ITAT case to support its decision. Consequently, the Tribunal allowed the appeal of the assessee for assessment year 2012-13 and dismissed the Revenue's appeal for 2013-14, affirming the set off of Long Term Capital Gains against brought forward Long Term Capital Loss.In conclusion, the Tribunal allowed the appeal of the assessee and dismissed the appeal of the Revenue, confirming the set off of Long Term Capital Gains against brought forward Long Term Capital Loss in both cases.---