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Tribunal allows appeal for carry forward of Short Term Capital Loss The Tribunal allowed the appeal of the assessee regarding the allowance of carry forward of Short Term Capital Loss amounting to Rs. 57,22,815. The ...
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Provisions expressly mentioned in the judgment/order text.
Tribunal allows appeal for carry forward of Short Term Capital Loss
The Tribunal allowed the appeal of the assessee regarding the allowance of carry forward of Short Term Capital Loss amounting to Rs. 57,22,815. The Tribunal held that the return claiming the loss was filed in accordance with the law, making the assessee eligible for carry forward of the loss. The Assessing Officer was directed to verify and compute the quantum of loss, and the issue was restored back to the AO for examination. The ground of appeal by the assessee was allowed for statistical purposes.
Issues involved: The issue in this case involves the allowance of carry forward of Short Term Capital Loss amounting to Rs. 57,22,815 claimed by the assessee.
Summary:
Issue 1: Allowance of Carry Forward of Short Term Capital Loss The Tribunal considered the issue of whether the claim of long-term capital loss made in the return under section 153A of the Income Tax Act, which was later revised and claimed as short-term capital loss, should be allowed to carry forward to subsequent years. The Tribunal referred to a decision by the Hon'ble Jurisdictional High Court in the case of JSW Steel Ltd., which held that in cases of abated assessment, the return of income filed under section 153A should be considered a 'regular return' of income. The assessee in this case had originally filed a return under section 139(1) of the Act, but due to a search action, the assessment was abated, and a notice under section 153A was issued. The assessee then claimed a short-term capital loss on the sale of shares of "Intime Properties Pvt. Ltd." after revising the return. The Tribunal, in line with the Supreme Court decision in the JSW Steel Ltd. case, held that the return claiming the loss was filed in accordance with the law, making the assessee eligible for carry forward of the loss. The Tribunal directed the Assessing Officer to verify and compute the quantum of loss, and therefore, restored the issue back to the AO for examination. The ground of appeal by the assessee was allowed for statistical purposes.
Decision: The Tribunal allowed the appeal of the assessee, and the order was pronounced in the open court on 11/05/2023.
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