TaxTMI 
TaxTMI 
2016 (4) TMI 707
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....onal Investor ('FII') registered with SEBI, invests in Indian Securities in accordance with SEBI regulations for Asst. year 2008-09, the assessee filed its return of income on 30/09/2008 declaring total income of Rs. 48,90,51,424/-. The case was selected for scrutiny. In the course of assessment proceedings the assessee was provided with copy of 'AIR' and requested to reconcile the entries with the custodian trade report and the bank statements. The assessment was completed u/s 143(3) r.w.s.144C(3) of the Income Tax Act, 1961 (in short 'the Act') vide order dt. 02/02/2011, wherein the assessee's income was determined at Rs. 56,61,11,864/-; by considering Rs. 7,70,60,440/- as unexplained investment and bringing the same to tax under the head....
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.... that the order of the CIT(A) on the above ground(s) be set aside and that of the Assessing Officer be restored." 4). "The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 4. Ground at Sr. No. 3 and 4 being general in nature, no adjudication is called for thereon. 5. Grounds No. 1 5.1 In this ground, Revenue contends that the Ld.CIT(A) had erred in allowing STCL on STT paid transactions to be set off against the STCG' on non-STT paid transactions, when the STCG' eligible for special discounted rate u/s 111A of the Act does not merely cover transactions which result in Profit but also include all eligible transactions, whether resulting in gain or loss. The Ld. AR was heard in....
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....sessee against the short term capital gain, has been accepted and the net figure of short-term capital gain after set-off of short term capital loss continues to remain the same. The dispute is only about the choice of setting off of short-term capital loss suffered after the cut-off date against the short-term, capital gain earned prior to the cut-off date. This position has arisen due to the introduction of section 111A for the first time from this year only which provides for lower rate of tax on short-term capital gains arising on the transactions which have suffered securities transaction tax. It is further pertinent to mention that such dispute is relevant only for the first year of the operation of this provision and cannot crop up i....
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.... question to be decided is as to who will have the last word to determine the preference over the order of the set-off of loss from the first transaction with the short-term capital gain in any or the other 9 transactions The relevant words used somewhere in between sub-section (2) arc that "the assessee shall be entitled" to have the amount of such loss set-off against' the income in respect of any other capital asset. Prima-facie there is cue in the language of the sub-section that the option is with the assessee and he will decide as to whether the short-term capital loss from the f irst transaction ought to be set off against the shortterm capital gain of the transaction No. 2 or 3 or 4 etc, as the case may be. Our view about the ve....
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.... assessee by holding that the set-off of long-term capital loss against the short-term capital gain was permissible under section 70, in the period prior to the amendment." 5.3.2 Following the aforesaid decision of the co-ordinate bench of this Tribunal in the case of First State Investments (Hong Kong)(supra), we hold that the set off as proposed by the assessee in the case on hand is to be allowed, and accordingly uphold the order of the Ld. CIT(A) in directing the Assessing Officer to permit the set off of the STCL (STT paid) against STCG' (non STT paid). Consequently, ground no.1 of the revenue appeal is dismissed. 6. Ground No: 2 6.1 In this ground revenue contends that the Ld. CIT(A) erred in directing the Assessing Officer t....