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2014 (2) TMI 1379 - AT - Income TaxSet off of the carried forwarded capital loss against the current year long term capital gain - HELD THAT - The assessee mentioned that these issues stand covered in favour of the assessee by virtue of the judgment of Ace Builders P. Ltd. 2005 (3) TMI 36 - BOMBAY HIGH COURT and many other decisions of this Tribunal such as (1) Geetanjali Traing Ltd 2013 (3) TMI 194 - ITAT MUMBAI and Manali Investments 2011 (4) TMI 116 - ITAT MUMBAI - Some of these decisions were not available to the AO / CIT (A) at the appropriate point of time. Therefore, in our considered opinion, the issue should be remanded to the files of the CIT (A) with a direction to examine the applicability of the said decisions to the facts of the present case and decide the grounds. MAT Computation - provisions for diminution of the value of investment constitutes an allowable deduction for the purpose of computing the book profits or not? - HELD THAT - As assessee says issue stands covered by the decision of the ITAT, Kolkata Bench in the case of DCIT vs. Mcleod Russel India Ltd 2013 (4) TMI 315 - ITAT KOLKATA direct the CIT (A) to examine the said decision and decide the claim of the assessee. Appeal treated as allowed for statistical purposes.
Issues:
1. Set off of capital loss against capital gain. 2. Delay in filing the appeal before the Tribunal. 3. Allowability of provision for diminution of value of investment in computing book profits. Issue 1: Set off of capital loss against capital gain: The appellant challenged the CIT (A)'s decision regarding the availability of capital loss of a specific assessment year for set off against capital gain in a subsequent year. The appellant argued that prior to the amendment of relevant sections, only one category of carried forward capital loss was available for set off. The Tribunal noted that the issues raised were covered by previous judgments, including one by the Bombay High Court. As these decisions were not available to the AO/CIT (A) earlier, the Tribunal remanded the case to the CIT (A) for reevaluation based on the applicability of the said judgments. The Tribunal allowed the grounds related to this issue for further examination. Issue 2: Delay in filing the appeal before the Tribunal: The appellant cited a delay of 64 days in filing the appeal due to a clerical error, supported by an affidavit. The Tribunal, considering the reasonable cause for the delay, condoned the delay and proceeded to adjudicate the appeal on its merits. Issue 3: Allowability of provision for diminution of value of investment in computing book profits: The appellant contended that the provision for diminution of the value of investment should be an allowable deduction for computing book profits. The Tribunal referred to a decision by the ITAT, Kolkata Bench, which supported the appellant's position. Consequently, the Tribunal directed the CIT (A) to examine the said decision and decide on the claim of the assessee. The grounds related to this issue were treated as allowed for statistical purposes. In conclusion, the appeal of the assessee was allowed in part, with certain issues remanded for further examination by the CIT (A) based on relevant legal precedents and decisions. The Tribunal provided detailed reasoning for each issue raised by the appellant, ensuring a comprehensive analysis of the legal aspects involved in the judgment.
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