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TMI Blog2024 (11) TMI 1153X X X X Extracts X X X X X X X X Extracts X X X X ..... 028/-. 11. Section 143(1) as it stands on the statute books as on today, does not permit either CPC or the AO to make such adjustments as they are beyond the scope of the said section. III. Hon'ble CIT-A, with due respect, was also not legally correct in holding that the scheme of section 115BAC does not permit setting off of carried forward Short Term Capital Loss against the Income under the head Capital Gains during the present AY i.e. 2022-23. IV. The Appellant craves leave of Your Honor to add/alter/delete any of the above cited grounds on or before the date of hearing of this appeal. V. The Appellant also reserves his right to ask for a personal hearing on the matter at appropriate point of time in case he feels the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27,78,028/-. The appellant has opted for taxation u/s 155BAC in the ITR filed as under (12) Ave you opting for new tax regime u/s 115BAC? Yes No 5.2 The CPC has worked out the tax under section 115BAC. Section 115BAC (2) and (3) are as under. (2) For the purposes of sub-section (1), the total income of the individual or Hindu undivided family shall be computed.- (i) without any exemption or deduction under the provisions of clause (5) or clause (13A) or prescribed under clause (14) (other than those as may be prescribed for this purpose) or clause (17) or clause (32), of section 10 or section 10AA or section 16 or clause (b) of section 24 (in respect of the property referred to in sub-section (2) of section 23) or clause (iia) of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of such block of assets as on the 1st day of April, 2020 in the prescribed manner, if the option under subsection (5) is exercised for a previous year relevant to the assessment year beginning on the 1st day of April, 2021. 5.3 Section 115BAC (2) (ii) states without set off of any loss and the CPC has only followed this. The income chargeable at normal rates u/s 115BAC is to be taxed without any set off of losses and, the income taxed at special rates is to be worked out with set off of loss. The LTCG is taxed at special rates and added to the tax worked out u/s 115BAC and the CPC has allowed set off of carried forward LTCG loss. STCG is taxed at normal rates u/s 115BAC is to be taxed without any set off of losses. The working of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2022-23. It was submitted by the counsel of the assessee that the assessee has opted for taxation u/s 115BAC of the IT Act and the above section does not prohibit set-off of short term capital loss. It was further submitted that B/F long term capital loss has already been allowed by CPC but has disallowed set off of B/F short term capital loss, without any valid reason. Accordingly, it was prayed before the Bench that when CPC has accepted the amount of short term capital loss arising in assessment year 2021-22 by issuing an intimation u/s 143(1) dated 21.06.2022, the same should be allowed to be brought forward to assessment year 2022-23 and setoff be given against the short term capital gain income of assessment year 2022-23, when a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ./JCIT(A)- 1, Coimbatore has already reproduced the section 115BAC in his order and from perusal of the same, it is found that long term capital loss & short term capital loss is not specifically barred and accordingly short term capital loss was required to be allowed by CPC. We also find that while processing the return of income of assessee, CPC allowed set-off of brought forward Long Term Capital Loss but at the same time not allowed/set-off of brought forward short term capital loss. The ld. Counsel of the assessee produced before us Annexure Schedule BFLA as provided by the assessee and as computed u/s 143(1) by CPC. It is observed that there are different columns for disclosing short term capital gain. For example, short term capital ..... X X X X Extracts X X X X X X X X Extracts X X X X
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