RAJAN CHOPRA,NEW DELHI vs. ITO, WARD-50(3), NEW DELHI

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ITA 986/DEL/2018Status: DisposedITAT Delhi31 May 2022AY 2009-102 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, in the interest of justice, remanded the matter back to the Assessing Officer. The AO is to verify whether the assessee claimed the loss and set it off against profits before arriving at the declared business income.

What were the facts?

The assessee's case was reopened based on investigation findings. The assessee incurred a loss of Rs. 2,13,149/- but claimed he did not avail any benefit from it. The CIT(A) disallowed this, noting the assessee's failure to substantiate the claim and provide working for business income.

What were the issues?

Whether the assessee properly accounted for a claimed business loss and its impact on the declared business income, and if the CIT(A) erred in not verifying this.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI

Before: Sh. Amit ShuklaDr. B. R. R. Kumar

Hearing: 14.03.2022Pronounced: 31.05.2022

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of the ld. CIT(A)-17, New Delhi dated 21.11.2017.

2.

The only tangible ground taken up by the assessee is as under:

“2. That the learned Commissioner of Income Tax (Appeals) has erred in not verifying that the loss of Rs.2,08,163/- has no where been claimed by the assessee while computing his total income on the ground that the working of business income of Rs.1,56,250/-.”

3.

The case was reopened u/s 148 of the Income Tax Act, 1961 owing to enquiries conducted by the investigation arm of the Income Tax Department with regard Client Code Modification (CCM). The assessee has incurred loss of 2 Rajan Chopra Rs.2,13,149/-. The assessee pointed out that he has not availed any benefit out of the alleged loss transaction. The ld. CIT(A) did not accept the contention of the assessee holding that the assessee has failed to substantiate his claim and perusal of income computation sheet shows that the assessee has reported income from business and profession to the tune of Rs.1,56,250/- and working of the business income of Rs.1,56,250/- has not been submitted. The ld. CIT(A) held that in the absence of such detail, it is not possible to check whether the loss of Rs.2,08,163/- has been reduced to arrive at the business income of Rs.1,56,250/-. Before us, the ld. AR pleaded that given an opportunity, the entire details would be submitted before the Assessing Officer.

4.

Hence, in the interest of justice, we hereby remand the matter to the file of the Assessing Officer to verify whether the assessee has claimed loss in transactions and set of the profits from the loss before arriving at the business income of Rs.1,56,250/-.

5.

In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 31/05/2022.

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