iShares ESG Aware MSCI ETF Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that short-term capital loss [STCL] on which STT is paid [which is taxable at 15% u/s. 111A of the Income Tax Act] can be set off against short-term capital gains [STCG] on which STT is not paid [which is taxable at 30% u/s. 115AD].
Facts- The assessee is a company incorporated in Mauritius, and is registered with the Securities and Exchange Board of India as a Foreign Portfolio Investor. During the assessment proceedings, AO observed that the assessee set off the short-term capital loss (on which STT was paid), which is taxable at 15% u/s. 111A of the Act, against the short-term capital gains (on which STT was not paid), which is taxable at 30% u/s. 115AD of the Act, and thereafter, set off the balance loss against the short-term capital gains earned on the transaction of sale of share subjected to STT.
AO, vide draft assessment order held that computation of the net short-term capital gains by 115AD the assessee is not in order. AO further held that the IT Rules have clearly defined separate columns for set-off and carry forward of gains of having differential tax rates. AO computed the net short-term capital gains amounting to Rs.24,40,71,541 taxable at 15% u/s. 111A of the Act and the net short-term capital gains amounting to Rs.2,09,87,996 taxable at 30% u/s. 115AD of the Act.
