DY CIT (INTERNATIONAL TAXATION)-1(2)(2), MUMBAI vs. M/S. BLUEBAY MAURITUS INVESTMENT LTD., MUMBAI

ITA 1370/MUM/2021Status: DisposedITAT Mumbai29 April 2022AY 2014-159 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that brought-forward capital losses cannot be adjusted against capital gains that are exempt from tax under a Double Taxation Avoidance Agreement (DTAA). The treaty benefit should be considered first, and only remaining losses can be carried forward.

What were the facts?

The assessee, a Mauritius-based FII, claimed exemption for short-term capital gains under the India-Mauritius treaty. The Assessing Officer (AO) sought to reduce the brought-forward capital losses by the amount of these exempt gains, arguing for set-off first. The assessee contended that treaty benefits should be applied before setting off losses.

What were the issues?

Whether brought-forward capital losses can be set off against capital gains exempt under a tax treaty, and the order of applying treaty benefits versus set-off of losses.

Which sections of the Income-tax Act were involved?

Section 90(2)

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Income Tax Appellate Tribunal, ‘I‘ BENCH

Before: SHRI M.BALAGANESH & SHRI KULDIP SINGH&

For Appellant: Shri Anish Thacker / Shri Hemen
For Respondent: Shri Rajneesh Yadav, Shri Anish Thacker / Shri Hemen
Hearing: 25/04/2022Pronounced: 29/04/2022

PER M. BALAGANESH (A.M):

These appeals in ITA Nos.1370/Mum/2021 & 1369/Mum/2021 for A.Yrs.2014-15 & 2013-14 respectively arise out of the order by the ld. Commissioner of Income Tax (Appeals)-55, Mumbai in appeal No.CIT(A)- 55, Mumbai/10164/2018-19 & CIT(A)-55, Mumbai/10228/2016-17 dated 09/02/2021 & 08/02/2021 respectively (ld. CIT(A) in short) against the M/s. Bluebay Mauritius Investment Ltd.,

order of assessment passed u/s.143(3) r.w.s.144C(3) & 143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 21/12/2017 & 23/02/2017 by the ld. Dy. Commissioner of Income Tax (

The order continues below.

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