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TMI Blog2013 (11) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... ax under a particular head of income - Sub-section (1) of sec. 70, referred to by the Revenue in its ground of appeal, refers to a source of income (under a head), and is in any case not applicable to income assessable as 'capital gains'. Reference thereto is therefore be to no moment; rather, would if at all signify that income on transfer of STCAs is regarded as one category or source of income u/s. 70(2). Reliance has been placed on the in the case of First State Investments (Hong Kong) Ltd. v. Asstt. DIT (International Taxation) [2009 (7) TMI 908 - ITAT MUMBAI], wherein it was held that the computation of income is a process anterior to the application of the tax rate, so that the differential in the tax rates is rendered as of no r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outset, it was sought to be mentioned by the ld. Authorized Representative (AR), the assessee's counsel, that the issue arising for adjudication in the instant case is covered by a series of orders by the Tribunal, placing a paper-book (PB) containing four such orders on record. The issue, i.e., whether the assessee is entitled to adjust the loss on short term capital assets (STCA) arising on one set of transactions, i.e., 'on market transactions', with the short term capital gain (STCG) arising to it on another set of transactions, i.e., 'off market transactions'. He would then take us to the relevant finding in the case of First State Investments (Hong Kong) Ltd. v. Asstt. DIT (International Taxation) [2009] 33 SOT 26 (Mum.), which is one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of a STCA could be set off against the income arising to the assessee for the relevant year on another STCA. So however, the statue employs the words 'similar computation' in the relevant provision of s. 70(2), so that the loss in 'on market transactions' would need to be first adjusted against the income, if any, against similar, i.e., 'on market' transactions, and only the balance adjusted against the income arising on 'off market transactions'. 4. We have heard the parties, and perused the material on record. The issue that basically arises is as to whether the assessee has an option to adjust the loss arising on a STCA against the income arising from such assets for the same year, irrespective of whether the transactions are ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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