SCHWAB FUNDAMENTAL EMERGING MARKETS EQUITY ETY ,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-4(2)(1), MUMBAI

ITA 2133/MUM/2025Status: DisposedITAT Mumbai17 June 2025AY 2022-23Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI OMKARESHWAR CHIDARA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that Section 70 of the Income Tax Act does not prescribe a hierarchy for setting off losses. The assessee is entitled to choose the most beneficial set-off method. The AO was directed to accept the assessee's computation.

What were the facts?

The assessee, a foreign portfolio investor, set off its short-term capital losses (STCL) from STT-paid shares against short-term capital gains (STCG) from non-STT securities. The Assessing Officer (AO) and DRP disallowed this set-off, recomputing the capital gains.

What were the issues?

Whether short-term capital losses from STT-paid shares can be set off against short-term capital gains from non-STT securities. Whether penalty proceedings under Section 270A were premature.

Which sections of the Income-tax Act were involved?

Section 70,Section 111A,Section 115AD,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

[ Per Rahul Chaudhary, Judicial Member:

1.

The present appeal pertaining to Assessment Year 2022-2023 has been preferred by the Assessee challenging Final Assessment Orders, dated 10/01/2025, passed by the Assessing Officer under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], as per the directions issued by Commissioner of Income Tax [Dispute Resolution Panel (2)], Mumbai-1 [for short ‘DRP’], on 05/12/2024 under

The order continues below.

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