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59. [2026] 139 ITR(T) 99 (Mumbai - Trib.)
iShares ESG Aware MSCI ETF v. DCIT(IT) – 2(2)(2)
A.Y.: 2022-23 DATE: 06.06.2025
Sec. 70(2) of the Income-tax Act, 1961 – Set-off of short-term capital loss – Short-term capital loss arising from STT-paid transactions could be set off first against short-term capital gains arising from non-STT-paid transactions – Section 70(2) does not classify transactions according to payment of STT or prescribe a hierarchy based on differential tax rates – Expression “similar computation” refers to computation under sections 48 to 55 and not the applicable tax rate – AO directed to accept assessee’s methodology.
FACTS
The Tribunal heard appeals filed by three separate assessees against final assessment orders dated 15.01.2025 under section 143(3) read with section 144C(13) for A.Y. 2022-23 together. ITA No. 2072/Mum/2025, concerning iShare ESG Aware MSCI EM ETF, was treated as the lead appeal. The lead assessee was a company incorporated in Mauritius and registered with SEBI as a Foreign Portfolio Investor.
The assessee set off short-term capital loss from STT-paid transactions first against short-
