ANAND PERSAD JAISWAL,NEW DELHI vs. ACIT, CENTRAL CIRCLE- 4, NEW DELHI

The solitary grievance of the assessee is that the CIT(A) erred in upholding the addition by treating Rs.13,94,583/- as short term capital gain in place of long term capital gain.

Representatives of both the sides were heard at length.

Briefly stated the facts of the case are that the assessee returned long term capital loss of Rs.29,05,652/- on sale of mutual funds hold by the assessee for less than 36 months as under :-

The assessee was asked to show cause why long term capital loss of Rs.29,05,652/- should not be disallowed and total short term capital gain of Rs.22,61749/- should not be added to the income. In its reply the assessee stated that if any units of mutual funds is held by the assessee for a period of more than 12 months, it will be treated as long term capital assets. The AO was of the opinion that where no STT has been paid on the selling price the holding period would extend to 36 months and accordingly disallowed the long term capital loss.

Assessee carried the matter before the CIT(A) but without any success.

Before us the counsel for the assessee moved an application for the admission of additional evidences being a certificate from Franklin India certifying that STT has been paid. We find that the date of CIT(A)’s order is much prior to the date of certificate which means that the same was not available with the assessee at the time of the appellate proceedings, therefore, the additional evidences in admitted.

However, in the interest of justice we remit the matter to the files of the AO. The assessee is directed to furnish the evidences before the AO and the AO is directed to decide the issue afresh after affording a reasonable and sufficient opportunity of being heard to the assessee.

In the result, the appeal of the assessee is allowed for statistical purpose.

The order is pronounced in the open court on 16.03.2022 in the presence of both the representatives.