Transfer pricing comparability under TNMM: foreign exchange loss on ECB excluded from operating cost, and a functionally dissimilar comparator removed...
The ITAT Mumbai addressed errors in capital gain computation. The Assessee's claim of ₹ 859,680 was accepted over the AO's ₹ 791,221. An application u/s 154 highlighted 4 computational errors, directing AO to correct them. Set-off of short-term capital loss against gains was disputed. AO's method was challenged as not granting set-off on gains taxed at 30%. Section 70(2) allows inter-head adjustment for capital gains. The Assessee argued for setting off short-term capital loss (subject to securities transaction tax) against gains not taxed under section 115AD at 30%. Both gains and losses were computed u/r sections 48-55, which do not specify tax rates. ITAT ruled in favor of the Assessee, allowing the set-off as per section 70(2). AO was directed to permit the set-off, supporting the Assessee's appeal.
The ITAT Mumbai addressed errors in capital gain computation. The Assessee's claim of ₹ 859,680 was accepted over the AO's ₹ 791,221. An application u/s 154 highlighted 4 computational errors, directing AO to correct them. Set-off of short-term capital loss against gains was disputed. AO's method was challenged as not granting set-off on gains taxed at 30%. Section 70(2) allows inter-head adjustment for capital gains. The Assessee argued for setting off short-term capital loss (subject to securities transaction tax) against gains not taxed under section 115AD at 30%. Both gains and losses were computed u/r sections 48-55, which do not specify tax rates. ITAT ruled in favor of the Assessee, allowing the set-off as per section 70(2). AO was directed to permit the set-off, supporting the Assessee's appeal.
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