ITAT Allows Carry Forward of Capital Loss Despite DTAA Exemption on Capital Gains

Matrix Partners India Investment Holdings Vs DCIT (ITAT Mumbai) The ITAT Mumbai held that a Mauritius tax resident is entitled to claim exemption on long-term capital gains (LTCG) under Article 13(4) of the India–Mauritius DTAA while simultaneously carrying forward long-term capital losses (LTCL) under the Income-tax Act if such treatment is more beneficial under Section 90(2). The assessee earned substantial LTCG from the sale of shares acquired before 1 April 2017 and claimed treaty exemption, while seeking carry forward of LTCL arising from other share transactions. The Assessing Officer ...