Rita Gupta Vs DCIT (ITAT Kolkata)
ITAT Kolkata held that loss on sale of shares on recognized stock exchange with STT paid, is eligible to be set off against the long-term capital gain (LTCG) earned from sale of unlisted shares.
Facts- Assessee filed return of income declaring total income of Rs. 18,31,980/-. Pertinent to note that a search action u/s 132 of the Act was conducted at the residential and office premises of the IRC group and its key persons. The assessee was also covered in the said search. Thereafter the statutory notices were duly issued and served on the assessee.
During the assessment proceedings, the AO called for various information from the assessee which were supplied and replied by the assessee and finally the assessment was framed making various additions including the addition of Rs. 47,90,616/-resulting on non-allowance of set off of loss from sale of equity shares on recognized stock exchange with STT paid against the profit on sale of unquoted equity shares. The AO rejected the said action on the ground that the long term capital gain on sale of quoted shares is exempt u/s 10(38) of the Act and similarly the loss incurred was also not liable to be set off against the other taxable income.
