Assessee, NRI, sold a property and claimed Long-Term Capital gain and also had long term capital loss. The Assessing Officer denied the set off long term capital loss as fictitious. Tribunal held that ownership of shares was transferred on its net effective worth and book value, consideration was paid and transaction was complete and loss was real and assessee may end up saving taxes but that was perfectly legitimate. Benefit of long-term capital loss cannot be denied. (AY. 2010-11)
Michael E Desa v. ITO(IT) (2021) 191 ITD 691 / 206 DTR 114 / 213 TTJ 753 (Mum.)(Trib.)
S. 70 : Set off of loss-One source against income from another source-Same head of income-Long term capital loss-Non-Resident-ownership of shares was transferred-consideration was paid and transaction was complete-Benefit of long-term capital loss set-off cannot be denied. [S. 45]