9911796707
TMI Blog2013 (11) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (A)- 37, Mumbai dated 21.7.2011 for the assessment year 2006-2007. 2. Assessee is aggrieved with the order of the CIT (A) on the decision of denial of the benefit of set off of Long Term Capital Loss earned on sale of 'debt based mutual funds' against the long term 'capital gains' earned by the assessee. It is the argument of the assessee that the CIT(A) erroneously applied the provisions of section 10(23D) of the Act which is never invoked by either by the AO or by the asssessee. It is also argued that the CIT (A) had not admitted the additional evidences in the form of confirmation letters from Mutual Fund Houses. 3. At the outset, Smt. Pragna Girish Shah, Ld Counsel for the assessee brought to our notice the order of the CIT (A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads as under:- "2.3.1. I have carefully and dispassionately considered the facts and circumstances of the case. During the course of appellate proceedings it was discussed that the appellant had claimed Long Term Capital Loss on Reliance Mutual Fund and ICICI Prudential Mutual Fund. It was specifically brought to the notice of the Ld AR that Reliance Mutual Fund, a Mutual fund registered with the SEBI, is eligible for benefit of section 10(23D) of the Act and hence the Long Term Capital Gain from sale of such Mutual Fund is exempt from tax. As a corollary, Long Term Capital Loss is not allowed to be set off against the Long Term Capital Gain from sale of flat at "Green Hills". The AO has correctly worked out the Long Term Capital Gain on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering the facts as well as legal position relevant to the issue in dispute. AO is directed to note that the applicability of provisions of section 10(23D) to the mutual funds either registered under SEBI or others. Assessee certainly does not fall within the scope of clause 23 of section 10 of the Act. On perusal of section 10(38), we find that the said clause-38 applies to "any income arising from the transfer of a long term capital asset, being an equity share in a company or a unit of an equity oriented fund" which is defined in Explanation to section 10(38). In the set aside proceedings, the AO ought to distinguish the equity oriented fund from that of the debt oriented fund before passing speaking order in this regard. AO shall also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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