https://www.taxtmi.com/caselaws?id=435071 Where the India-Mauritius DTAA gave Mauritius exclusive taxing rights over the relevant capital gains, India could not insist that brought-forward short-term and long-term capital losses be set off against gains exempt in India when the assessee validly chose the more beneficial treaty regime under section 90(2). Losses computed in earlier years retained their character for carry forward under section 74 and were allowable without forced set-off against those exempt gains. The draft assessment mechanism under section 144C was also held applicable because the adjustment altered the quantum of capital gains and losses, which constituted a prejudicial variation even though returned total income remained nil; the revenue's procedural objection failed. en-us Tue, 27 Sep 2022 00:00:00 +0530 Sat, 11 Mar 2023 08:48:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435071 Where the India-Mauritius DTAA gave Mauritius exclusive taxing rights over the relevant capital gains, India could not insist that brought-forward short-term and long-term capital losses be set off against gains exempt in India when the assessee validly chose the more beneficial treaty regime under section 90(2). Losses computed in earlier years retained their character for carry forward under section 74 and were allowable without forced set-off against those exempt gains. The draft assessment mechanism under section 144C was also held applicable because the adjustment altered the quantum of capital gains and losses, which constituted a prejudicial variation even though returned total income remained nil; the revenue's procedural objection failed. Case-Laws Income Tax Tue, 27 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435071