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)

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

In the result, the appeals of the assessees in ITA

ITA 4565/MUM/2023[2021-22]Status: DisposedITAT Mumbai29 May 2024AY 2021-22

Bench: Smt Kavitha Rajagopal, Jm & Ms Padmavathy S, Am

For Respondent: Shri Anil Sant, Sr. DR
Section 143(3)Section 234ASection 234BSection 234CSection 270A

Ishares Emerging Markets Imi Equity Index Fund, Mumbai vs. Deputy Commissioner of Income Tax (Int Taxation)-2(2)(2), Mumbai

In the result, the appeals of the assessees in ITA

ITA 4563/MUM/2023[2021-22]Status: DisposedITAT Mumbai29 May 2024AY 2021-22

Bench: Smt Kavitha Rajagopal, Jm & Ms Padmavathy S, Am

For Respondent: Shri Anil Sant, Sr. DR
Section 143(3)Section 234ASection 234BSection 234CSection 270A

Ishares Dege Msci Em Minimum Volatility Ucits, Mumbai vs. Deputy Commissioner of Income Tax (International of Income Tax (Int Tax)-2(2)(2), Mumbai

In the result, the appeals of the assessees in ITA

ITA 4562/MUM/2023[2021-22]Status: DisposedITAT Mumbai29 May 2024AY 2021-22

Bench: Smt Kavitha Rajagopal, Jm & Ms Padmavathy S, Am

For Respondent: Shri Anil Sant, Sr. DR
Section 143(3)Section 234ASection 234BSection 234CSection 270A

Jane Street Asia Capital Ltd, Mumbai vs. The Assistant Commissioner of Income Tax Int Tax Circle 3(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3329/MUM/2023[2020-21]Status: DisposedITAT Mumbai17 May 2024AY 2020-21

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am

For Appellant: Shri Dhanesh Bafna a/w HardikFor Respondent: Shri Anil Sant, Sr. DR
Section 111ASection 115ASection 143(2)Section 143(3)Section 144C(13)Section 153Section 234BSection 270ASection 70(2)

East Bridge Capital Master Fund I Limited, Mumbai vs. Deputy Commissioner of Income Tax (International Tax)-2(2)(1), Mumbai

In the result, appeal of the Assessee is partly allowed

ITA 2976/MUM/2023[2020-21]Status: DisposedITAT Mumbai10 Apr 2024AY 2020-21

Bench: Shri Vikas Awasthy & Shri Amarjit Singhआ.अ.सं.2976 2976/मुं/2023 (िन.व. 2020-2021) 2976 2976 East Bridge Capital Master Fund I Ltd. C/O. Ernst & Young Llp, 17Th Floor, The Ruby, 29Th Senapati Bapat Marg, Dadar West, Mumbai – 400 028 ...... अपीलाथ"/Appellant Pan:Aaece8814F बनाम Vs.

For Appellant: S/Shri Madhur Agarwal & Fenil Bhatt, AdvocatesFor Respondent: Shri Ajay Kumar Sharma, CIT (DR)
Section 111ASection 143(3)Section 234BSection 70(2)

Js Capital Llc, Mumbai vs. ACIT (International Taxation) Circle 3 (1) (1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3396/MUM/2023[2020-21]Status: DisposedITAT Mumbai26 Feb 2024AY 2020-21

Bench: Shri Amit Shukla & Shri Amarjit Singhassessment Year: 2020-21 M/S. Js Capital Llc, Acit (International C/O Vasa Chauhan & Taxation) Associates, Circle-3(1)(1), Off. No.41, 3Rd Floor, Room No.1605, Vs. 16Th Floor, Hi Life Premises, P.M. Road, Air India Building, Santacruz West, Nariman Point, Mumbai – 400 054 Mumbai – 400 021 Pan: Aaecj2857M (Appellant) (Respondent) Present For: Assessee By : Ms. Hirali Desai, A.R. Shri Dhanesh Bafna, A.R. Shri Nirmal Hardik, A.R. Revenue By : Shri Anil Sant, D.R. Date Of Hearing : 07 . 02 . 2024 Date Of Pronouncement : 26 . 02 . 2024 O R D E R Per : Amarjit Singh: This Appeal Filed By The Assessee Is Directed Against The Order Passed By The Acit, International Tax, Circle- 3(1)(1), Mumbai Dated 26.07.2023 For A.Y. 2020-21. The Assessee Has Raised The Following Grounds Before Us: “1. On The Facts & In The Circumstances Of The Case & In Law, The [Final Assessment] Order [Dated 26 July 2023] Passed By The Assistant Commissioner Of Income-Tax - International Tax Circle 3(1)(1) Mumbai

For Appellant: Ms. Hirali Desai, A.RFor Respondent: Shri Anil Sant, D.R
Section 111ASection 115ASection 143(2)Section 143(3)Section 144C(13)Section 153Section 234ASection 270ASection 70(2)

ACIT Circle-2 (1)(1), Mumbai vs. Yogiraj Jaichand Maker, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 6268/MUM/2019[2014-15]Status: DisposedITAT Mumbai21 Apr 2022AY 2014-15

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri B.V. JhaveriFor Respondent: Shri Hoshang B. Irani
Section 143(3)Section 250Section 70(2)Section 70(3)

Late Chunilal Hinduj Oswal, Represented by Lh Yugesh Rajesh Oswal, Kolhapur vs. Income-Tax Officer, Ward - 1(2), Kolhapur

In the result, the appeal of the assessee is allowed

ITA 2156/PUN/2017[2008-09]Status: DisposedITAT Pune28 Dec 2018AY 2008-09

Bench: Ms. Sushma Chowla, Jm आयकर अपील सं. / Ita No.2156/Pun/2017 िनधा"रण वष" / Assessment Year : 2008-09 Late Chunilal Hinduj Oswal, Represented By L/H Yugesh Rajesh Oswal, Mr. The Kohinoor Tarpaulin Industries, 10/11 Y.P. Power Nagar, Kolhapur. अपीलाथ"/Appellant Pan: Aabpo1509P …. Vs. The Income Tax Officer, …. ""यथ" / Respondent Ward- 1(2), Kolhapur. अपीलाथ" क" ओर से / Appellant By : Shri M. K. Kulkarni : Shri M. K. Verma ""यथ" क" ओर से / Respondent By घोषणा क" तारीख / सुनवाई क" तारीख / Date Of Pronouncement: 28.12.2018 Date Of Hearing : 27.12.2018 आदेश / Order Per Sushma Chowla, Jm: The Appeal Filed By The Assessee Is Against The Order Of Cit(A)-2, Kolhapur Dated 20.07.2017 Relating To Assessment Year 2008-09 Against Order Passed Under Section 143(3) Of The Income-Tax Act, 1961 (In Short ‘The Act’). 2. The Assessee Has Raised The Following Grounds Of Appeal :- “1) On The Facts & Circumstances Of The Case & In Law The Ld. Cit(A) Was Not Justified In Dismissing The Appeal Holding That It Was Correctly Assessed By A.O. As Short Term Capital Gain In Share Trading. It Was Pleaded Before Him That By Mistake The Same Was Declared As Short Term Capital Gain Which Fact Should Have Been Accepted Especially When The Assessee Was No More To Explain Properly. The Loss Of Rs.4,86,192/- Be Treated As Business Loss Only. 2) The Appellant Craves To Leave, Add/Amend Or Alter Any Of The Above Grounds Of Appeal.” 2

For Appellant: Shri M. K. Kulkarni
Section 143(3)Section 70(2)

The Dy. CIT, Circle-3(1)(2), Ahmedabad vs. M/S. Rajesh Malleables Ltd., Ahmedabad

In the result, both the appeal of the revenue and cross objection of the assessee are dismissed

ITA 16/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad09 Jul 2018AY 2012-13
For Appellant: Shri Anil Kshatriya, A.RFor Respondent: Shri Krishna Murari, CIT-D.R
Section 143(2)Section 143(3)Section 2(14)Section 28Section 70(2)

Sri Kanchan Kamal Mukhopadhyay, Kolkata vs. ITO, WD-20(2), Kolkata

In the result both the appeals of the assessee are allowed

ITA 587/KOL/2014[2008-2009]Status: DisposedITAT Kolkata14 Jul 2017AY 2008-2009

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am] I.T.A Nos. 587 & 588/Kol/2014 Assessment Year : 2008-09 Shri Kanchan Kamal Mukhopadhyay -Vs.- I.T.O., Ward-20(2) Kolkata Kolkata. [Pan : Aanpm 2997 B] (Respondent) (Appellant) For The Appellant : Shri Rip Das, Fca For The Respondent : None Date Of Hearing : 10.07.2017. Date Of Pronouncement : 14.07.2017. Order Per N.V.Vasudevan, Jm

For Appellant: Shri Rip Das, FCAFor Respondent: None
Section 143(1)Section 147Section 148Section 154Section 271(1)(c)

DCIT (It) 4(3)(1), Mumbai vs. Vanguard Emerging Market Index Fund, A Serid Os Vanguard Investment Service Plc(Vemsif), Mumbai

In the result, appeal filed by the revenue for assessment year 2007-2008

ITA 3595/MUM/2015[2007-08]Status: DisposedITAT Mumbai19 Apr 2017AY 2007-08

Bench: Shri Rajendra (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2007-2008 The Dcit (It)- 4(3)(1), M/S Vanguard Emerging Market R. No. 116, Index Fund, Scindia House, C/O S.R. Batliboi & Co., Ballard Pier, Vs. 14Th Floor, The Ruby, N.M. Road, 29 Senapati Bapat Marg, Mumbai- 400038 Dadar, Mumbai- 400028 Pan: Aaccv3136B (Appellant) (Respondent)

For Appellant: Sh. M.C. Omi Ningshen (DR)For Respondent: Amalsadwala (AR)
Section 111ASection 11ASection 143Section 143(3)Section 144(3)Section 147Section 148Section 70(2)Section 94(7)