AI Drafter 
TaxTMI 
TaxTMI 
2025 (4) TMI 913
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.... by the Revenue in all these appeals is with regard to the CIT(A) allowing the carry forward of Short Term Capital Loss (STCL) whereas the assessee has taken the benefit of the DTAA between India and Singapore with respect to the Short Term Capital Gains (STCG). ITA No.723/Mum/2025 - AY 2014-15 2. The assessee is a company incorporated in Singapore and is a tax resident of Singapore. The assessee is registered with Securities & Exchange Board of India (SEBI) as Foreign Portfolio Investor (FPI). For the AY 2014-15 the assessee has earned STCG of Rs. 1,20,80,326/- and a STCL of Rs. 11,12,50,756/-. The assessee while filing the return of income claimed carry forward of the net STCL of Rs. 9,91,70,430/- for the year under consideration. T....
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....ss of Rs.7,41,59,811/- from A.Y.2013-14 has been disallowed vide order u/s.154 dated 21.01.2021 for AY 2013- 14. However, the appellant has claimed that the losses were validly carried forward from prior AY 2011-12 and 2012-13 amounting to Rs. 6,533 and Rs. 7,41,53,278 respectively and that these losses were claimed under the provisions of the Income Tax in the respective ITR's of these years which were filed on time within the stipulated due dates applicable to these years and further that no adverse action was taken by the AO in these two AY 2011-12 and AY 2012-13 in this regard. Therefore, the claim of the appellant is that these losses were validly claimed and validly allowed to be carried forward to subsequent years and that the AO can....
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....for the assessee to examine whether or not in the light of the applicable legal provisions and the precise factual position the provisions of the IT Act are beneficial to him or that of the applicable DTAA. In any case, the tax treaty cannot be thrust upon an assessee. In case the assessee during one year does not opt for the tax treaty, it would not be precluded from availing the benefits of the said treaty in the subsequent years. Our aforesaid view is fortified by the order of 8 ITA No.4475 /Mum/2024 Bay Capital India Fund Limited the ITAT, Pune in Patni Computer Systems Ltd. (supra). We thus in terms of our aforesaid observations, not being able to persuade ourselves to subscribe to the view taken by the A.O/DRP" (emphasis supplied) ....
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....Y 2011-12 and AY 2012-13 and therefore, the denial of carry forward under section 154 passed by the AO in AY 2013-14 is not sustainable. Accordingly, the ld. AR argued that the carry forward of losses for the year under consideration on the said ground is not tenable. 5. We heard the parties and perused the material on record. For the year under consideration the assessee has not claimed the treaty benefits and has set off the STCG against the STCL made during the year and in the return of income the net STCL is carry forward. On perusal of the ground raised by the revenue, we notice that the revenue is contending the carry forward of the current year loss on the ground that the assessee taken the benefit under DTAA between India and Sin....
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....ed forward and for this purpose the loss pertaining to each AY are to be determined in the assessment year in which the loss is first computed. Therefore in our view the CIT(A) has correctly held that the right to carry forward the loss of AY 2011-12 and AY 2012-13 cannot be denied by a rectification order passed in AY 2013-14. Accordingly the basis on which the AO has denied the benefit of carry forward of loss for the year under consideration is not sustainable and the AO is directed to allow the carry forward of STCL of earlier years as claimed in the return of income. Ground No.(i) and (iii) raised by the revenue are thus dismissed. 6. During the course of hearing the ld DR did not present any arguments with regard to Ground No.(ii) ....
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....is brought forward from AY 2014-15 should also be allowed to be carried forward. Accordingly, we direct the AO to allow the carry forward loss as claimed by the assessee in the return of income. ITA No.734/Mum/2025 - AY 2018-19 9. During the year under consideration the assessee has earned STCG of Rs. 5,71,70,042/- and incurred STCL of Rs. 4,74,15,249/- resulting in the net STCG of Rs. 97,54,793/-. The assessee set off the net STCG of the current year with the brought forward STCL from earlier years. The AO while completing the assessment disallowed the set off of STCG against the brought forward from earlier years on the ground that the assessee in earlier AYs, the losses were not allowed to be carried forward. The CIT(A) on further ....