The Assessee was a SEBI-registered foreign portfolio investor. During the assessment proceedings, the AO called upon the assessee to explain why the long term capital loss should not be set off against the long term capital gain. The assessment was concluded after considering the reply of the assessee, after which notice u/s 263 was issued.

The ITAT held that sufficient materials were furnished by the
assessee during assessment proceedings along with evidences in support of its claim of carry forward of loss and the simultaneous exemption of LTCG claimed as per DTAA. Hence, the notice u/s 263 was declared to be void ab initio.