MR. NIKHIL SAWHNEY,NEW DELHI vs. ACIT, NOIDA

ITA 1249/DEL/2017Status: DisposedITAT Delhi10 October 2025AY 2013-1442 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that when income is exempt under Section 10(38), both positive income and negative loss do not enter into the regular computation of total income. Therefore, the assessee is not entitled to set off or carry forward the long-term capital loss on shares where STT was paid and the gains would have been exempt under Section 10(38).

What were the facts?

The assessee claimed a long-term capital loss on the sale of shares on which Securities Transaction Tax (STT) was paid. The Assessing Officer denied the claim, stating that since the capital gains from such transactions are exempt under Section 10(38), the losses are also not allowable. This was upheld by the CIT(A).

What were the issues?

Whether long-term capital loss on sale of shares, where STT is paid and gains are exempt under Section 10(38), is allowable for set off or carry forward.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 143(3),Section 70,Section 71,Section 74

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Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI

Before: SHRI M. BALAGANESH & SHRI VIMAL KUMAR

For Appellant: Shri Rohit Jain, Adv, Ms. Somya Jain, Adv
For Respondent: Ms. Harpreet Kaur hansra, Sr. DR
Hearing: 06/08/2025Pronounced: 10/10/2025

PER M. BALAGANESH, A. M.:

1.

The appeal in ITA No.1249/Del/2017 for AY 2013-14, arises out of the order of the Commissioner of Income Tax (Appeals)-I, Noida [hereinafter referred to as „ld. CIT(A)‟, in short] in Appeal No. 179/203/2015-16/Noida dated 29.11.2016 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) dated 31.03.2015 by the Assessing Officer, DCIT, Central Circle, Noida (hereinafter referred to as „ld. AO‟).

2.

At the outset, we find that there is a delay of 18 days in filing of appeal before us by the assessee. Considering the reasons adduced in the condonation petition, in the interest of substantial justice, we are inclined to condone the delay and admit the appeal of the

The order continues below.

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