SHIV KUMAR JATIA,NEW DELHI vs. ITO, WARD- 10(2), NEW DELHI

ITA 7256/DEL/2019Status: DisposedITAT Delhi26 April 2021AY 2011-1223 pages
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What did the Tribunal hold?

The Tribunal held that long-term capital loss arising from STT-paid share transactions should be allowed to be carried forward, as Section 74 of the Act cannot be rendered otiose. For the property sale, the Tribunal ruled that the holding period commences from the date of the initial agreement, thus qualifying the gains as long-term.

What were the facts?

The assessee claimed exemption for long-term capital gains on sale of shares where STT was paid, but sought to carry forward the resultant loss. In another appeal, the AO treated gains from property sale as short-term capital gains, arguing the holding period began from the last installment payment.

What were the issues?

Whether long-term capital loss from STT-paid share transactions is eligible for carry forward when the gains are exempt. Whether the holding period for capital gains on property begins from the date of the initial agreement or the last installment payment.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 71,Section 74,Section 2(24),Section 2(14),Section 2(47)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: Sh. Bhavnesh SainiDr. B. R. R. Kumar

Hearing: 10.03.2021Pronounced: 26.04.2021

Heard together (2 matters)

ITA No. 7256/Del/2019
ITA No. 241/Del/2019

Read from the judgment's own cause title. This page is filed under one of them.

Per Dr. B. R. R. Kumar, Accountant Member:

The present appeals have been filed by the assessee against the order of the ld. CIT(A)-4, New Delhi dated 01.08.2019 for the A.Y. 2011-12 and the order of the ld. CIT (A)-60, Mumbai dated 30.11.2018 for the A.Y. 2013-14. 2. The relevant part of the Assessment Order required for adjudication of the issue is as under:

“It is noticed that the transactions of sale of shares were subject to Securities Transaction Tax (STT). Long-Term Capital Gain on transaction of sale of shares, where the transactions have suffered STT, is exempt from tax u/s 10(38) of the Act. Under the sche

The order continues below.

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