2011 (6) TMI 871 - HC - Income Tax

Summary

Issues involved: Appeal u/s 260-A of the Income Tax Act, 1961 challenging order by the Income Tax Appellate Tribunal for Assessment Year 2001-2000.

Summary:
1. The appellant-revenue challenged the Tribunal's order allowing short term capital loss on sale of mutual funds after earning tax-free dividend income, raising the question of law.
2. The respondent cited a Supreme Court decision to support their position, which was not disputed by the appellant.
3. The Supreme Court decision highlighted that losses pertaining to exempted income cannot be disallowed for cases before 1st April, 2002.
4. As the present case falls before this date, the Tribunal's decision to allow the capital loss was upheld in favor of the assessee.
5. The appeal was dismissed with no costs incurred.