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TMI Blog2022 (4) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... was not paid. The emphasis of the Assessing Officer on the term similar computation also only refers to the computation as provided under section 48 to 55 of the Act. As relying on M/s Mac Charles India Ltd [ 2015 (1) TMI 1232 - ITAT BANGALORE ] and Ashok K. Shah [ 2014 (8) TMI 1225 - ITAT MUMBAI] we find no infirmity in the impugned order passed by the learned CIT(A) allowing set off of Short Term Capital Loss (on which STT was paid) against Short Term Capital Gain (on which STT was not paid). Accordingly, only ground raised by the Revenue in present appeal is dismissed. - ITA No.6268/Mum./2019 - - - Dated:- 21-4-2022 - Shri Prashant Maharishi, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that assessee has set off Short Term Capital Loss amounting to ₹ 1,85,69,138 which is taxable at the rate of 15% against the Short Term Capital Gain of ₹ 2,46,87,281, which is taxable at normal rates. The assessee was asked to show cause as to why the setting off be not disallowed as the same is against the provisions of section 70(3) of the Act. In reply, assessee filed detailed submissions justifying the claim of set off by placing reliance on various judicial precedents. The Assessing Officer vide order dated 21.12.2016 passed under section 143(3) of the Act held that the set off as claimed by the assessee is against the provisions of section 70(3) of the Act and accordingly, disallowed the claim of the assessee of adjustmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee was ₹ 59,273.41. In the month of September 2013, the assessee purchased 24,04,536 shares of MFL at a cost of ₹ 15,75,34,065. Subsequently, in the month of October 2013, M/s CIE Automotive SA ( CIE ) had made an offer to the shareholders of MFL to acquire the shares of MFL at a price of ₹ 81 per share. The assessee had surrendered the whole shareholding of MFL, i.e. 24,24,182 shares (19,646+24,04,536). CIE accepted only 65% of the total shareholding, i.e. 15,78,417 shares (12,792+15,65,625). Accordingly, the assessee received ₹ 10,36,152 (12,792 X ₹ 81) and ₹ 12,68,15,625 (15,65,625 X ₹ 81). Thus, the assessee earned Long Term Capital Gain of ₹ 9,97,558 on sale of 12,792 shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Capital Loss and the same reads as under: (2) Where the result of the computation made for any assessment year under sections 48 to 55 in respect of any short-term capital asset is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset. Thus, as per the aforesaid provision the Short Term Capital Loss can be set off against gain from any other capital asset. Section 70(2) of the Act does not make any further classification between the transactions where STT was paid and the transactions where STT was not paid. The emphasis of the Assessing Officer on the term similar com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven above, we confirm the order of the CIT(A) and dismiss ground No.2 raised by the Revenue. 14. Similarly, another Co-ordinate Bench of Tribunal in ACIT v/s Ashok K. Shah, in ITA No. 3278/Mum/2013 vide order dated 08.08.2014, dismissed the appeal filed by the Revenue following judicial precedents on this issue, on the following ground of appeal: (1) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing set off the Short term Capital Loss (transactions with STT paid) against the Short term capital gain (transactions without STT paid) ignoring the fact that section 70(2) of the I.T. Act states that set off of short term capital loss can be done only against similar computation of Short term ..... X X X X Extracts X X X X X X X X Extracts X X X X
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