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The present appeals have been filed by the assessee against the order of the ld. CIT(A)-4, New Delhi dated 01.08.2019 for the A.Y. 2011-12 and the order of the ld. CIT (A)-60, Mumbai dated 30.11.2018 for the A.Y. 2013-14.

2. The relevant part of the Assessment Order required for adjudication of the issue is as under:

"It is noticed that the transactions of sale of shares were subject to Securities Transaction Tax (STT). Long-Term Capital Gain on transaction of sale of shares, where the transactions have suffered STT, is exempt from tax u/s 10(38) of the Act. Under the scheme of the Income Tax Act, where income from a particular source is exempt from tax (i.e. incomes Shiv Kumar Jatia exempt under section 10), the gain or loss from transactions such source des not enter into the computation of income as the same gets excluded at the threshold itself. Therefore, loss from such source is not available for set off or for carry forward for set- off against income chargeable to tax. Therefore, while the computation of Long Term Capital Gain/Loss on the sale off the said shares is accepted as correct, the aforesaid net Long Term Capital Loss (Rs.4,45,74,513/-) shall not be carried forward for set-off against Long Term Capital Gain, if any, in the succeeding years."

4. Aggrieved the assessee filed appeal before us.

5. The ld. AR mainly argued referring to the provisions of the Act viz. Section 10(38), Section 71 and Section 74.

6. The ld. DR argued on the issue of what constitutes income as per Section 2(24), provisions of Section 10(38) which deals with "incomes not included in total income" and argued that when "X" income derived from source "Y" is not taxable, the loss incurred under the similar transactions of "Y" is not Shiv Kumar Jatia allowable. The arguments of the ld. Sr. DR are summarized as under:

"1. The main issue in this appeal is whether loss from sale of long term capital share on which security transaction tax has been paid should be allowed to be carried forward for set off even though the income from such transfer of long term capital asset is exempt u/s 10(38). In this context the attention of the Hon'ble Bench is drawn to the scheme of computation of income and envisaged under the I.T. Act, 1961.

2. Under the scheme of the Income Tax Act, 1961, all the receipt by assessee are to be first considered from the angle of whether they carry an obligation to be returned to the payer or not. If they entail the obligation to be returned, genuine receipt from explained sources does not partake the nature of income and is normally not taxable as such. If it has no obligation to be returned, the receipts are normally to be considered as income. In this background, kind attention of the Bench is drawn to Section 2(24) of the Income Tax Act, 1961 which defines income for the purposes of the Act. The word' income' is of the widest amplitude and it must be given its natural and grammatical meaning. It may be appreciated that definition of the income as envisaged in section 2(24) is an inclusive definition. The purpose of the definition is not to limit the meaning of income' but to widen its net and the several clauses therein are not exhaustive of the meaning of income. Hon'ble Supreme Court has laid down the word "Income" is of widest amplitude and must be given its natural grammatical meaning. Thus even if a receipt does not fall within the specific ambit of Shiv Kumar Jatia section 2(24), it may still be income if it partakes the nature of income. Kind attention is drawn to CIT Vs G.R. Karthikeyan (SC) 201 ITR 866 in this regard, in the case of the assessee the receipt from sale of long term asset clearly is income in the hand of the assessee in term of section 2(24) read with the definition of transfer as defined u/s 2(47) of the I.T. Act. 1961.

4. Now kind attention is drawn to 10(38) of the I.T. Act, 1961 for the purpose of analyzing whether the receipt would form the part of total income of assessee or not, it is reproduced as under:

Shiv Kumar Jatia "10 (38) any income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund where--