https://www.taxtmi.com/caselaws?id=421021 The Tribunal allowed the appeal of the assessee, quashing the PCIT's order. It held that the AO's decision not to set off the long-term capital loss against exempt income was correct. Relying on precedent, the Tribunal emphasized that an order is prejudicial only if based on incorrect facts or law. Since exempt income does not contribute to total income, it should not be used for setting off losses. The AO's order allowing carry forward of losses was deemed valid, and the appeal was decided in favor of the assessee on 13/04/2022. en-us Wed, 13 Apr 2022 00:00:00 +0530 Fri, 15 Apr 2022 08:54:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421021 The Tribunal allowed the appeal of the assessee, quashing the PCIT's order. It held that the AO's decision not to set off the long-term capital loss against exempt income was correct. Relying on precedent, the Tribunal emphasized that an order is prejudicial only if based on incorrect facts or law. Since exempt income does not contribute to total income, it should not be used for setting off losses. The AO's order allowing carry forward of losses was deemed valid, and the appeal was decided in favor of the assessee on 13/04/2022. Case-Laws Income Tax Wed, 13 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421021