Assessing Officer disallowed assessee’s claim for setting off Long-Term Capital Loss from off-market transactions involving sale of listed shares to his sister concern. Assessing Officer held that\u00a0 deemed those transactions as a colorable device used to artificially reduce taxable income, since assessee maintained effective control over shares while creating losses to offset against future gains. Commissioner (Appeals) allowed assessee’s claim, stating it was legitimate tax planning. On appeal the Tribunal held that\u00a0 from records that assessee transferred said listed securities to his partnership firm, which paid him consideration while he retained control over securities and this artificial transaction created a long-term capital loss for set-off against current and future gains without any actual loss. Transaction under consideration created extraordinary rights and obligations that did not align with principles of fairness, and was an arrangement designed primarily for tax evasion. Accordingly\u00a0\u00a0 the order of\u00a0 Commissioner (Appeals)\u00a0 is\u00a0 set aside and the order of the\u00a0 Assessing Officer\u00a0 be restored. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 70 : Set off of loss-One source against income from another source-Same head of income-Capital loss-Transfer of listed securities to his partnership firm-Long term capital loss-Colorable device-Loss is not allowed to be set off. [S. 10(38), 45] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-51188","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-djC","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=51188"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51188\/revisions"}],"predecessor-version":[{"id":51189,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51188\/revisions\/51189"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}