https://www.taxtmi.com/caselaws?id=792662 Capital gains exempt under the India-Mauritius DTAA do not enter the computation of total income under the Income-tax Act, so domestic set-off provisions cannot be used to adjust long-term capital losses against those exempt gains. Applying section 90(2), the more beneficial treaty position prevails over the Act, and an exempt income stream cannot be brought into the computation machinery indirectly through loss adjustment. The Tribunal therefore held that long-term capital loss from shares acquired before 1 April 2017 could not be set off against treaty-exempt long-term capital gains from similar share transfers, and the carry-forward of long-term capital loss had to be recomputed accordingly. en-us Fri, 29 May 2026 00:00:00 +0530 Mon, 01 Jun 2026 08:25:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792662 Capital gains exempt under the India-Mauritius DTAA do not enter the computation of total income under the Income-tax Act, so domestic set-off provisions cannot be used to adjust long-term capital losses against those exempt gains. Applying section 90(2), the more beneficial treaty position prevails over the Act, and an exempt income stream cannot be brought into the computation machinery indirectly through loss adjustment. The Tribunal therefore held that long-term capital loss from shares acquired before 1 April 2017 could not be set off against treaty-exempt long-term capital gains from similar share transfers, and the carry-forward of long-term capital loss had to be recomputed accordingly. Case-Laws Income Tax Fri, 29 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792662