9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 972 - AT - Income TaxAssessment u/s 153A - Disallowance of set off of brought forward long term capital loss arising on sale of STT paid shares against Long term capital gain earned - HELD THAT - AO has repeated the disallowance made in the original assessment order, we find that the ground taken by the Revenue describing the loss is in fact short term capital loss. However, for the reason that disallowance is repeated in 153A order, which was already part of 143(3) proceedings could not have been made by the learned Assessing Officer in 153A proceeding. Same are the facts with respect to the disallowance under section 14A of the Act. Accordingly, grounds no. 1 2 of the appeal of the learned Assessing Officer are dismissed. Short-term capital loss set off against long term capital gain - Assessee has not claimed set off of any brought forward long term capital loss but has claimed set off of short term capital loss ground of appeal raised by the Assessing Officer is not sustainable in view of the provisions of Section 74(1)(a) of the Act, which allows set off of loss related to short term capital asset brought forward to be set off of capital gain earned in respect of any other capital asset. Accordingly, appeal filed by the learned Assessing Officer is dismissed. Accordingly, all the three appeals filed by the learned Assessing Officer are dismissed.
Issues Involved:
1. Set off of Long Term Capital Gain against brought forward Long Term Capital Loss. 2. Deletion of disallowance under section 14A of the Income Tax Act, 1961. Detailed Analysis: Issue 1: Set off of Long Term Capital Gain against brought forward Long Term Capital Loss Assessment Year 2012-13: - The learned Assessing Officer (AO) disallowed the set off of long-term capital gain of ?2,99,94,793/- against the brought forward loss, which was contested by the assessee. - The CIT(A) allowed the set off, following the decision of the Pune bench of ITAT and the coordinate bench in the case of Raptakosh Brett & Co Limited. - The Tribunal noted that the disallowance was repeated in the order passed under section 153A without any incriminating material found during the search. Since the original assessment order under section 143(3) had already granted relief to the assessee, the Tribunal dismissed the AO’s appeal. Assessment Year 2016-17: - The AO disallowed the set off of ?81,20,956/- against brought forward capital loss from the sale of shares on which STT is paid. - The CIT(A) allowed the set off, and the Tribunal noted that the issue was covered by the decision of the coordinate Bench in earlier years. - The Tribunal dismissed the AO’s appeal on the ground of low tax effect, as the combined tax effect of the disallowance and the deletion under section 14A was less than ?50 lakhs. Assessment Year 2017-18: - The AO disallowed the brought forward loss of ?5,67,45,907/-, which the assessee claimed as short-term capital loss from Assessment Year 2010-11. - The CIT(A) directed the AO to allow the set off, and the Tribunal confirmed that the loss was indeed short-term capital loss, not long-term, as per the provisions of Section 74(1)(a). - The Tribunal dismissed the AO’s appeal, noting that the ground raised was erroneous. Issue 2: Deletion of Disallowance under Section 14A Assessment Year 2012-13: - The AO disallowed ?4,47,436/- under section 14A read with Rule 8D, which was deleted by the CIT(A). - The Tribunal noted that the disallowance was repeated in the order passed under section 153A without any incriminating material found during the search and dismissed the AO’s appeal. Assessment Year 2016-17: - The AO disallowed ?6,78,176/- under section 14A, which the CIT(A) restricted to ?3,81,968/-. - The Tribunal noted that the issue was covered by the decision of the coordinate Bench in earlier years and dismissed the AO’s appeal on the ground of low tax effect. Conclusion: The Tribunal dismissed all three appeals filed by the learned Assessing Officer for the assessment years 2012-13, 2016-17, and 2017-18, upholding the CIT(A)’s orders allowing the set off of capital gains against brought forward losses and restricting the disallowance under section 14A. The decisions were based on the lack of incriminating material found during searches and the low tax effect involved.
|
