Section 70(2) of the Income Tax Act

Income-tax Act, 2025: s.108

Section 70(2) falls under section 70 of the Income-tax Act, 1961, which corresponds to section 108 (Set off of losses under same head of income) of the Income-tax Act, 2025.

Read section 108 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 70(2) is 292 ITR 416(SC) Galileo Nederland BV v. Assistant Director of Income-tax, Circle-i(2), (Intl. Tax), New Delhi (367 ITR 319), cited in 28 of the 51 judgments on BharatTax that turn on this section.

Leading authorities on Section 70(2)

292 ITR 416(SC) Galileo Nederland BV v. Assistant Director of Income-tax, Circle-i(2), (Intl. Tax), New Delhi
367 ITR 319 · 2014 · High Court
28
citing judgments

The principle of consistency requires that the Assessing Officer or First Appellate Authority must follow decisions made in earlier years, unless there are good and sufficient reasons to deviate. An assessee's status should not be altered arbitrarily without assigning reasons or distinguishing facts.

JCIT v. Montgomery Emerging Marketing Funds,\n
100 ITD 217 · 2006 · ITAT
23
citing judgments

Each transaction can be considered a separate source of income, allowing taxpayers to choose between the Income-tax Act and a Double Taxation Avoidance Agreement (DTAA) for each transaction. Section 70(2) of the Act does not prescribe an order for setting off specific short-term capital losses against specific short-term capital gains, favouring the taxpayer in interpretation.

J.S. Capital LLC v. ACIT (Int. Taxation)
160 Taxmann.com 286 · 2024 · Reported
18
citing judgments

The set-off of short-term capital loss against capital gains is permissible under section 70(2) of the Income-tax Act, regardless of whether the gains are taxed at normal rates or special rates. This applies even when the assessee has capital gains chargeable to tax at different rates.

First State Investments (Hong Kong) Ltd. v. ADIT
33 SOT 26 · 2009 · ITAT
12
citing judgments

The phrase 'under similar computation' in Section 70(2) refers to the computation of capital gains as per Sections 45-55 of the Income Tax Act, not the tax rate applicable. Therefore, short-term capital losses can be set off against short-term capital gains taxed at different rates.

MSCI EM UCITS ETF USD ACC v. DCIT
164 Taxmann.com 56 · 2024 · ITAT
9
citing judgments
First State Investments (Hongkong) Ltd. v. DDIT
132 TTJ 218 · 2010 · ITAT
4
citing judgments
Share Aids (P) Ltd. v. ITO
124 Taxmann.com 256 · 2021 · High Court
3
citing judgments

Judgments on Section 70(2)

Sumitra Somani, Mumbai vs. Assessing Officer, Mumbai

In the result, the appeal of the assessee is allowed

ITA 1172/MUM/2026[2016-17]Status: DisposedITAT Mumbai11 Jun 2026AY 2016-17

Bench: Shri Challa Nagendra Prasad & Shri Makarand Vasant Mahadeokarsumitra Somani Ito-42(1)(5) C-502, Shraddha Apts, Kautilya Bhavan, Bkc, Asha Nagar, Kandivali Vs. Mumbai. East, Mumbai-400101. Pan/Gir No. Aapps7277J (Applicant) (Respondent) Assessee By Shri C. V. Jain, Ld. Ar Revenue By Shri Vijay Kumar Soni, Ld. Dr Date Of Hearing 10.06.2026 Date Of Pronouncement 11.06.2026 आदेश / Order Per Makarand Vasant Mahadeokar, Am: This Appeal By The Assessee Is Directed Against The Order Dated 16.01.2026 Passed By The Addl./Jcit(A), Raipur, Office Of Commissioner Of Income Tax, Appeals [Hereinafter Referred To As "Cit(A)"]Under Section 250 Of The Income-Tax Act, 1961 [Hereinafter Referred To As "The Act"]For Assessment Year 2016-17

Section 143(1)Section 154Section 249(3)Section 250Section 70(2)

Ishares Core Msci Total International Stock Etf (As A Successor to Ishare Core Taotal International Stock Mauritius Company ), Mumbai vs. Dy CIT (Int. Tax)-2(2)(1), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 6774/MUM/2025[2023-24]Status: DisposedITAT Mumbai02 Jan 2026AY 2023-24

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhailishares Core Msci Emerging Markets Etf (As A Successor To Ishares Core Emerging Markets Mauritius Company) C/O Ernst & Young Llp, 17Th Floor, The Ruby, 29, Senapati Bapat Marg, ............... Appellant Dadar (West), Mumbai - 400028 Pan : Aafci3337N V/S Deputy Commissioner Of Income Tax (International Tax) - 2(2)(2) Room No.606, 6Th Floor, Kautilya Bhavan, ……………… Respondent C-41 To C-43, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 Ishares Msci All Country Asia Ex Japan Etf C/O Ernst & Young Llp, 17Th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai - 400028 Pan : Aabti7439L ............... Appellant

For Appellant: Shri Pranav GandhiFor Respondent: Shri Satya Pal Kumar, CIT-DR
Section 143(3)Section 144C(13)Section 144C(5)Section 70Section 70(2)

Ishares Core Msci Emerging Markets Etf (As A Successor to Ishares Core Emerging Markets Mauritius Company, Mumbai vs. DCIT (Tp) 2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 6051/MUM/2025[2023-24]Status: DisposedITAT Mumbai02 Jan 2026AY 2023-24

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhailishares Core Msci Emerging Markets Etf (As A Successor To Ishares Core Emerging Markets Mauritius Company) C/O Ernst & Young Llp, 17Th Floor, The Ruby, 29, Senapati Bapat Marg, ............... Appellant Dadar (West), Mumbai - 400028 Pan : Aafci3337N V/S Deputy Commissioner Of Income Tax (International Tax) - 2(2)(2) Room No.606, 6Th Floor, Kautilya Bhavan, ……………… Respondent C-41 To C-43, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 Ishares Msci All Country Asia Ex Japan Etf C/O Ernst & Young Llp, 17Th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai - 400028 Pan : Aabti7439L ............... Appellant

For Appellant: Shri Pranav GandhiFor Respondent: Shri Satya Pal Kumar, CIT-DR
Section 143(3)Section 144C(13)Section 144C(5)Section 70Section 70(2)

Ishares Msci All Country Asia Ex Japan Etf, Mumbai vs. DCIT (Int. Tax)-2(2)(2), Mumbai

ITA 6050/MUM/2025[2022-23]Status: DisposedITAT Mumbai02 Jan 2026AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri Pranav GandhiFor Respondent: Shri Satya Pal Kumar, CIT-DR
Section 143(3)Section 144C(13)Section 144C(5)Section 70Section 70(2)

DCIT CC-8(4), Mumbai vs. Oscar Infra Private Limited, Navi Mumbai

In the result, the appeal filed by the revenue stands dismissed

ITA 847/MUM/2025[2011-12]Status: DisposedITAT Mumbai13 Oct 2025AY 2011-12

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankardcit, Cc-8(4) Vs. Oscar Infra Pvt Ltd Room No. 659, 6Th Floor, Office No. 707, 7Th Aayakar Bhavan, Mk Road Floor, Everest Nivara, Churchgate, Mumbai – Infotech Park, Plot No. 400020. D/3, Ttc Industrial Area, Midc Pan/Gir No. Aabco0152H (Applicant) (Respondent)

Section 70(2)

Asstt. Commissioner of Income Tax It 3.1.2, Kautilya Bhawan, Mumbai vs. Kuwait Investment Authority, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 4207/MUM/2025[2020-21]Status: DisposedITAT Mumbai26 Aug 2025AY 2020-21

Bench: Shri Saktijit Dey, Hon'Ble & Shri Girish Agrawalassessment Year: 2020-21

For Appellant: Shri Farookh V. Irani, AdvocateFor Respondent: Shri Krishna Kumar, Sr. DR
Section 115ASection 143(3)

Sabeena Silk Mills, Mumbai vs. Income Tax Officer 31(1)(1), Mumbai

In the result, the appeal of the assessee bearing ITA No

ITA 1508/MUM/2025[2021-22]Status: DisposedITAT Mumbai14 Aug 2025AY 2021-22

Bench: Shri Narndra Kumar Billaiya & Shri Anikesh Banerjeesabeena Silk Mills Vs Income-Tax Officer 31(1)(1), Apurva Industrial Estate, Mumbai, Majwana Road, Marol Kautilya Bhavan, Bkc, Bandra, Mumbai-400 059 Mumbai-400 051 Pan: Aabfs3210R Appellant Respondent

For Appellant: Shri H.N. MotiwalaFor Respondent: Shri Leyaqat Ali Aafaqui (SR.DR.)
Section 143(1)Section 154Section 250Section 50

Employees Retirement System of Texas, Mumbai vs. Dy CIT (Int. Tax)-2(2)(1), Mumbai

The appeals are partly allowed

ITA 2155/MUM/2025[2022-23]Status: DisposedITAT Mumbai13 Jun 2025AY 2022-23

Bench: SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Anish ThackarFor Respondent: Shri Satya Pal Kumar
Section 143(3)Section 144BSection 144C(13)Section 144C(5)Section 70Section 70(2)

Fidelity Rutland Square Trust II Strategic Advisers Emerging Markets Fund, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation), Mumbai

The appeals are partly allowed

ITA 2127/MUM/2025[2022-23]Status: DisposedITAT Mumbai13 Jun 2025AY 2022-23
For Respondent: Shri Anish Thackar
Section 143(3)Section 144BSection 144C(13)Section 144C(5)Section 70Section 70(2)

Fidelity Salem Street Trust Fidelity Sai Emerging Markets Index Fund, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation)-2(3)(1), Mumbai

The appeals are partly allowed

ITA 2126/MUM/2025[2022-23]Status: DisposedITAT Mumbai13 Jun 2025AY 2022-23

Bench: SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Anish ThackarFor Respondent: Shri Satya Pal Kumar
Section 143(3)Section 144BSection 144C(13)Section 144C(5)Section 70Section 70(2)

Ishares Msci All Country Asia Ex Japan Etf(As A Successor to Ishares Msci All Country Asia Ex Japan Mauritius Co), Mumbai vs. DCIT (Int)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2154/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Section 143(3)Section 144C(13)

Ishares Msci India Etf(As A Sucessor to Ishares India Index Maruitius Company), Mumbai vs. DCIT (Int)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2153/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares Core Msci Em Imi Ucits Etf, Mumbai vs. DCIT (Int)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2152/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares Core Msci Total International Stock Etf (As A Successor to Ishares Core Total International Stock Mauritius Co ), Mumbai vs. Deputy Commissioner of Income Tax (International Taxation)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2151/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares Msci Emerging Markets Etf (As A Successor to Ishares Emerging Markets Index Mauritius Co ), Mumbai vs. Deputy Commissioner of Income Tax (International Taxation)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2150/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares India 50 Etf (As A Successor to Ishares India Mauritius Co ), Mumbai vs. Deputy Commissioner of Income Tax (International Taxation)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2149/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares Msci Em Ucits Etf Usd Dist, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2148/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares Msci India Ucits Etf, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation )-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2147/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Schwab Emerging Markets Equity Etf, Mumbai vs. Deputy Commissioner of Income Tax International Taxation -4(2)(1), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2134/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares Core Msci Emerging Markets Etf (As A Sucessor to Ishares Core Emerging Markets Mauritius Company), Mumbai vs. Deputy Commissioner of Income Tax (International Taxation) 2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2085/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail