Long Term Capital Gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2010 I have a case wherein, Long Term Capital Loss from Equity is brought forward and Set-off against Long Term Capital Gains from Off-Market Equity transaction (STT not paid) in AY 2009-10. IT department has rejected this Set-off claiming that the Transaction is Off Market. Is this arguable ? and is it correct to Set-off ? if so then under which section ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

01 October 2010 It should be allowed if the earlier LTC Loss from equity was not the one on which STT was paid i. e. before the STT regime.

If gain is exempt the loss cannot be set off or carried forward.

Loss from exempt source cannot be carried forward - If the loss arising in the previous year was under a head not chargeable to tax, it could not be allowed to be carried forward and absorbed against income in a subsequent year from a taxable source. In such cases, neither the assessee is required to show the same in the return nor is the ITO under any obligation to compute or assess it, much less for the purpose of ‘carry forward’ - CIT v. Harprasad & Co. (P.) Ltd. [1975] 99 ITR 118 (SC).

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 October 2010 Absolute value of the transaction is exempt under section 10(38) and ,therefore, loss of previous year cannot be carried forward and set off against subsequent year's income. Ultimately,the view of ITO is backed by judicial support, no doubt,the client will lose the case.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Arun Mahaldar

CA Sabrish Nair

REGIWISE CONSULTANTS PVT LTD

K.M. AGGARWAL

Ashif Cheenikkal

Subscribe Now

Long Term Capital Gain

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA