KUSHAL NARENDRA DESAI ,MUMBAI vs. DCIT,CC6(1), MUMBAI

ITA 5231/MUM/2025Status: DisposedITAT Mumbai13 July 2026AY 2017-1821 pages
AI SummaryAllowed

What were the facts?

The assessee claimed a set-off of long-term capital loss (LTCL) on sale of investments with STT against long-term capital gains (LTCG) earned without STT. The Assessing Officer disallowed this, treating the loss as an expense to earn exempt income. The assessee also raised issues regarding the taxation of commission and Leave Travel Allowance on an accrual basis, and the computation of House Rent Allowance.

What did the Tribunal hold?

The Tribunal held that LTCL on sale of shares with STT can be set off against LTCG without STT, as no exception is carved out in the relevant sections. It also held that commission and LTA are taxable when accrued to the assessee, not merely when provided in the employer's books. The Tribunal further directed the AO to recompute HRA exemption by excluding commission from the definition of 'salary'.

What were the issues?

Whether LTCL on STT-paid investments can be set off against LTCG on non-STT investments, and the correct year of taxation for commission and LTA, and the correct computation of HRA exemption.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 70,Section 71,Section 74,Section 14A,Section 10(13A),Section 15

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: HON’BLE SHRI SANDEEP GOSAIN & HON’BLE SHRI GIRISH AGRAWAL

For Respondent: Shri Hemanshu Joshi, Sr. DR
Pronounced: 13.07.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of ld. CIT(A)-54, Mumbai vide DIN: ITBA/APL/S/250/2025- 26/1078016403(1) dated 30.06.2025, passed against the assessment order by Assistant Commissioner of Income-tax, Central Circle-6(1), Mumbai, u/s 143(3) of the Income-tax Act

1 Kushal Narandra Desai Assessment Year 2017-18

(hereinafter referred to as the “Act”), dated 30.12.2019, for Assessment Year 2017-18. 2. Assessee has raised the following

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 10(38)

All 3,100 judgments and leading authorities on Section 10(38) →

Recent GST High Court judgments

Search GST case law →