IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JM &

MS PADMAVATHY S, AM I.T.A. No. 2062/Mum/2025 (Assessment Year: 2016-17) I.T.A. No. 2063/Mum/2025 (Assessment Year: 2021-22)

Goldman Sachs (Singapore) Pte, ACIT (International Tax)-2(3)(2), C/o Ernst & Young LLP, 14^th Floor, Room No. 610, 6^th Floor, The Ruby, 29 Senapati Bapat Marg, Kautilya Bhavan, C-41 to C-43, Vs.

Dadar West, Mumbai-400028. G B l o c k , B andra Kurla Complex, PAN: AAFCG0345N Bandra (East), Mumbai-400051.

Appellant) : Respondent Assessee / Appellant by : Shri Hiten Thakkar (Virtually Present), AR Revenue / Respondent by : Shri Krishna Kumar, Sr. DR Date of Hearing : 06.10.2025 Date of Pronouncement : 10.10.2025 O R D E R Per Padmavathy S, AM:

These appeals by the assessee are against the separate orders of the Commissioner of Income Tax (Appeals)-56, Mumbai [In short 'CIT(A)'] passed under section 250 of the Income Tax Act, 1961 (the Act) for Assessment Years (AY) 2016-17 & 2021-22 both dated 15.01.2025. The common issues contended by the assessee in both these appeals pertain to the denial of carry forward of brought forward capital losses of AY 2014-15.

2. The assessee is a company incorporated in Singapore and registered with Securities & Exchange Board of India (SEBI) as a Foreign Portfolio Investor (FTR). The assessee makes investment in the India Capital Markets earning income in the nature of Capital Gains, Dividend, Interest etc. and is a tax resident of Singapore. The assessee filed the return of income for AY 2016-17 on 30.11.2016 declaring an income of Rs. 13,160/- and the return for AY 2021-22 was filed on 14.03.2022 declaring income of Rs. 905,85,15,780/-. The assessee during the Financial Year (FY) relevant to AY 2016-17 earned Short Term Capital Gains (STCG) of Rs. 8,88,94,64,645 and Long Term Capital Gain (LTCG) Rs.13,18,92,948 and claimed both as exempt under Article 13 of India – Singapore DTAA. The assessee had incurred a loss of Long Term Capital Loss (LTCL) of Rs. 3,76,20,674 which the assessee did not claim to be carried forward since the gain is claimed as exempt under the Treaty. The assessee has brought forward Short Term Capital Loss (STCL) to the tune of Rs. 37,55,67,388/- from AY 2014- 15 and since the gain is claimed as exempt under Article 13 of India-Singapore DTAA claimed the same to be carried forward to subsequent years. The AO however, did not allow the claim of the assessee for carry forward of the brought forward loss for the reason that if the gains arising is exempt from tax in India then the loss also should be exempt and therefore cannot be allowed to be carry forward. Accordingly, the AO set off the brought forward loss against the STCG claimed as exempt by the assessee thereby denying the carry forward of the brought forward loss. On further appeal the CIT(A) confirmed the order of the AO against which the assessee is in appeal before the Tribunal.

3. The ld. AR at the outset submitted that the issue is covered by the decision of the Co-ordinate Bench in the case of ACIT v/s. J.P. Morgan India Investment Company, Mauritius Ltd. [2022] 143 taxmann.com 82 (Mum. Trib.) where it has been held that “12. We have heard the rival submissions and also perused the relevant findings and material placed on record. The controversy involved in this appeal is, whether in the year in which assessee has claimed benefit of DTAA while claiming exemption from taxation of capital gain as per Article 13(4) of Indian Mauritius DTAA, without setting off of short term capital loss and long term capital loss from earlier year and be allowed to be carry forward to the subsequent years on the ground that in the earlier years when assessee suffered loss it chose not to claim benefit under DTAA and computed the loss as per domestic law, i.e., under the Income Tax Act.

13. First of all, it is well settled principle that the tax treaties allocate taxing rights to the treaty partner in the following three manners:-

(a) Rig