TRAVEL FOOD SERVICES LIMITED (AS M/S. SNVK HOSPITALITY AND MANAGEMENT PVT LTD MERGED WITH TRAVEL FOOD SERVICE LTD),MUMBAI vs. DCIT, CIRCLE 8(3)(1), MUMBAI

ITA 459/MUM/2026Status: DisposedITAT Mumbai19 August 2026AY 2020-2116 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that crucial facts regarding the purchase and sale of shares, including any potential arrangements between entities and the timing of transactions, needed further examination. Therefore, the matter was set aside to the Assessing Officer for de novo adjudication.

What were the facts?

The assessee claimed a short-term capital loss of Rs. 6,13,29,000/- on the sale of shares. The Assessing Officer disallowed this loss, viewing the transaction as a 'colourable device' to set off long-term capital gains.

What were the issues?

Whether the short-term capital loss claimed by the assessee was a genuine business transaction or a colourable device to evade tax. The need for a thorough factual investigation into the circumstances surrounding the share transactions.

Which sections of the Income-tax Act were involved?

Section 70,Section 56(2)(x)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH; MUMBAI

Before: SHRI VIKRAM SINGH YADAV & SHRI SANDEEP SINGH KARHAIL

Hearing: 21.05.2026Pronounced: 19.08.2026

PER VIKRAM SINGH YADAV, A.M :

This is an appeal filed by the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [‘Ld.CIT(A)’], dated 12.01.2026, pertaining to Assessment Year (AY) 2020-21, wherein the Assessee has taken the following grounds of appeal:

“1 The Ld Faceless CIT(A) has erred in law and on the facts of the case in confirming the action of Assessing Officer in disallowing short term capital loss of Rs.6,13,29,000/-. The action in unjustified and unwarranted as the los

The order continues below.

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