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Income Tax Appellate Tribunal, “H” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY & SHRI MANOJ KUMAR AGGARWAL
IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA no.5309/Mum./2015 (Assessment Year : 2012–13) Reliance Shares & Stock Brokers P. Ltd. Tower–II, 901–A, 9th Floor One Indiabulls Centre ……………. Appellant 841, Senapati Bapat Marg Elphinstone Road, Mumbai 400 013 PAN AAACR2801B v/s Dy. Commissioner of Income Tax Circle–4(2)(1), Aayakar Bhawan ……………. Respondent 101, M.K. Road, Mumbai 400 020 Assessee by : Shri Deepak Jain Revenue by : Shri Vishwas Jadhav Date of Hearing – 03.11.2016 Date of Order – 11.11.2016
O R D E R PER SAKTIJIT DEY, J.M.
This is an appeal by the assessee against order dated 3rd September 2015, passed by the learned Commissioner (Appeals)–9, Mumbai, for the assessment year 2012–13.
The solitary issue in dispute in the present appeal is in relation to disallowance of business loss amounting to ` 95,95,439.
Briefly the facts are, the assessee, a company, is engaged in the business of share broking. For the assessment year under 2 Reliance Shares & Stock Brokers P. Ltd. consideration, assessee filed its return of income on 3rd September 2012, declaring nil income. During the assessment proceedings the assessing officer while verifying the return of income filed by the assessee noticed that assessee had claimed business loss of ` 1,02,72,838. On further verification the assessing officer found that the assessee had not commenced its business operation during the year under consideration and has not credited any business income to the profit and loss account. On the other hand, the assessee had credited other income relating to capital gain and income from other sources to the profit and loss account and claimed expenditure which has resulted in loss of ` 1,02,72,838. The assessing officer noticed that in assessment year 2011-12 the claim of business loss was disallowed by him for a non-commencement of business, proceeded to disallow the loss claimed by the assessee and in the process the income derived from capital gain and income from other sources credited to the property and loss account as business income was treated as income under the respective heads. Being aggrieved of the assessment order so passed, assessee preferred appeal before the first appellate authority.
The learned Commissioner (Appeals) also sustained the disallowance of business loss.
3 Reliance Shares & Stock Brokers P. Ltd.
We have heard learned Counsels appearing for both the parties and perused the materials on record. Learned Authorised Representative, at the outset, fairly submitted, the issue has been decided against the assessee by the Tribunal while deciding assessee’s appeal in assessment year 2011–12. In this context, the learned Authorised Representative placed on record a copy of the order dated 1st September 2016, in ITA no.735/Mum./2015. The learned departmental representative agreed with the aforesaid submissions of the assessee. On a perusal of above referred order of the tribunal in assessee’s own case, we have noted that disallowance of assessee’s claim of business loss was sustained by the Tribunal in the immediately preceding assessment year as the assessee had not carried out any business activity. There is no change in the facts and circumstances in the impugned assessment year. That being the case, we do not find any reason to interfere with the decision of the departmental authorities. The grounds raised are dismissed.
In the result assessee’s appeal is dismissed. Order pronounced in the open Court on 11.11.2016