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“capital loss carry forward”

Losses & Set-offSection 74Section 744 judgments

The decision most relied on for capital loss carry forward is CIT v. Shri Plot Swetamber Murti Pujak Jain Mandal (211 ITR 293), cited in 204 judgments on BharatTax.

Leading authorities on capital loss carry forward

CIT v. Shri Plot Swetamber Murti Pujak Jain Mandal
211 ITR 293 · 1995 · High Court
204
citing judgments

A charitable trust can carry forward its excess expenditure from previous years and adjust it against the income of subsequent years, which qualifies as an application of income under Section 11. Additionally, voluntary contributions received for a specific purpose are treated as corpus funds and are not taxable.

CIT v. Hariprasad & Company Pvt. Ltd.
99 ITR 118 · 1975 · Supreme Court
78
citing judgments

The terms 'income' or 'profits and gains' are inclusive of losses, signifying that losses are 'minus income' to be factored into the computation of taxable income. Therefore, set-off and carry forward provisions for losses apply exclusively to taxable income or gains and cannot be pressed into service against non-taxable gains, such as those exempt under a DTAA or other specific provisions.

CIT v. Manmohan Das
59 ITR 699 · 1966 · Supreme Court
47
citing judgments

The eligibility for an assessee to carry forward and set off losses, including capital losses, against future income is determined by the Assessing Officer in the year the set-off is claimed, not in the year the loss was incurred.

Raptakos Brett & Co. Ltd. v. DCIT
69 SOT 383 · 2015 · ITAT
20
citing judgments

Long-term capital loss on the sale of shares can be set off and carried forward under sections 70 and 71, as section 10(38) only exempts long-term capital gains and does not encompass capital losses.

ACIT v. J.P. Morgan India Investment Company Mauritius Limited
143 Taxmann.com 82 · 2022 · ITAT
18
citing judgments

Where an assessee claims treaty benefits under Article 13(4) of the India-Mauritius DTAA, exempting capital gains from Indian taxation, brought forward short-term and long-term capital losses cannot be set off against such exempt gains, nor can they be carried forward to subsequent years.

CIT v. Karamchand Premchand Ltd.
40 ITR 106 · 1960 · Supreme Court
18
citing judgments

Capital losses can be carried forward to subsequent assessment years. The decision emphasizes that if a business conducted outside British India resulted in a loss, it could not be set off against profits from a business within British India, based on the interpretation of Section 5 of the Business Profits Tax Act, 1947.

Royal Calcutta Turf Club v. CIT
144 ITR 709 · 1983 · High Court
15
citing judgments

Capital loss arising from the sale of shares can be carried forward to subsequent years. The accounting treatment of shares as a capital asset in the books of account confirms that their sale generates capital profit or loss.

CIT v. Western India Oil Distributing Co. Ltd.
249 ITR 517 · 2001 · Supreme Court
13
citing judgments

Where an assessee claims exemption for capital gains under a DTAA, capital losses are also exempt and can be segregated from capital gains for the purpose of claiming benefits under the DTAA or the Act, whichever is more beneficial. Assessees are justified in carrying forward brought forward losses when claiming DTAA exemptions on capital gains.

Judgments citing capital loss carry forward

Asia Investment Corporation (Mauritius) Limited, Mumbai vs. Deputy Commissioner of Income Tax (Int Taxation)1(1)(2), Mumbai

In the result the appeals filed by the assessee for both the years under consideration stands partly allowed

ITA 2766/MUM/2024[2017-18]Status: DisposedITAT Mumbai31 Jan 2025AY 2017-18

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

Section 143(3)Section 147Section 148Section 148(1)(b)Section 69Section 74

show cause notice, the assessee filed its reply on 23/05/2023 for both the years under consideration justifying the allowability of short-term capital loss carry forwarded by the assessee. The assessee also submitted on the genuineness of the loss and non applicability of section 69. It was submitted that

Asia Investment Corporation (Mauritius ) Limited, Mumbai vs. Deputy Commissioner of Income Tax (Int Tax)-1(1)(2), Mumbai

In the result the appeals filed by the assessee for both the years under consideration stands partly allowed

ITA 2765/MUM/2024[2016-17]Status: DisposedITAT Mumbai31 Jan 2025AY 2016-17

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

Section 143(3)Section 147Section 148Section 148(1)(b)Section 69Section 74

show cause notice, the assessee filed its reply on 23/05/2023 for both the years under consideration justifying the allowability of short-term capital loss carry forwarded by the assessee. The assessee also submitted on the genuineness of the loss and non applicability of section 69. It was submitted that

DCIT, Ncc-2, Coimbatore vs. M/S. the Coimbatore District Consumer Co-Operative Wholesale Stores Ltd., Coimbatore

In the result, the appeal filed by the Revenue is allowed for statistical purposes

ITA 188/CHNY/2020[2012-13]Status: DisposedITAT Chennai19 Oct 2022AY 2012-13

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita No.: 188/Chny/2020 िनधा"रण वष" / Assessment Year: 2012-13

For Appellant: Shri. P. Sajit Kumar, JCIT
Section 143(3)Section 250

assessee's case, the past years carry forward loss was from the head "Business and Profession" and there was no eligible Long Term Capital Loss carry forwarded from the past assessment years. Hence the net of Rs.2,61,71,474/- becomes taxable in the hands of the assessee in this

Dsp Investment Pvt Ltd., Mumbai vs. Dy. CIT Circle-2(1)(1), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 4624/MUM/2019[2010-11]Status: DisposedITAT Mumbai28 Apr 2022AY 2010-11

Bench: Shri Pavan Kumar Gadale & Shri Gagan Gogaldsp Investment Pvt Ltd Vs Dcit, Circle – 2(1)(1) 11Th Floor, Mafatlal Aaykar Bhavan Centre, Nariman Point Mk Road, Mumbai – 400 021. Mumbai – 400 020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb1574H Appellant .. Respondent

For Appellant: Mr.Madhur Agarwal.ARFor Respondent: Mr.Shankar.DR
Section 143(1)Section 143(2)Section 143(3)Section 154

that the CIT(A) has erred in confirming the action of the A.O in not allowing the set off of unabsorbed short term capital loss carry forward and set off with current year income, though the information/details were filed in the course of assessment proceedings