SH. AMAN MEHTANI,NEW DELHI vs. ACIT, FARIDABAD

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ITA 414/DEL/2013Status: DisposedITAT Delhi10 June 2016AY 2009-103 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the evidence for losses on futures and options was mistakenly attached to the wrong year's submission due to a clerical error. This led the lower authorities to believe no evidence was filed for the current assessment year.

What were the facts?

A search and seizure operation was conducted at the assessee's residence. The assessee filed a return of income, and the assessment was framed at a higher total income. The primary issue was the disallowance of losses claimed on futures and options.

What were the issues?

Whether the assessee provided sufficient documentary evidence for the claimed loss on futures and options, and if a clerical error in submission should lead to disallowance.

Which sections of the Income-tax Act were involved?

Section 153A,Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

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

Before: SHRI J. SUDHAKAR REDDY & MS. SUCHITRA KAMBLE

For Appellant: Adv. and Sh. Abhishek Anand, Adv

ORDER PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER

This is an appeal filed by the Assessee directed against the order of the Ld.Commissioner of Income Tax (Appeals) (Central), Gurgaon dated 6.11.2012 pertaining to the Assessment Year (A.Y.) 2009-10.

2.

Facts in brief:- In this case, search and seizure was conducted at the business premises as well as the residence of the group cases of M/s Imperial Auto Industries Ltd. on 02.09.2009. The residence of the assessee was also subjected to the search operation. In response to notice u/s 153A

Sh. Aman Mehtani vs. ACIT the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) the assessee filed the return of income on 02.02.2011 declaring an income of Rs.5,79,36,750/-. The assessee derived income from salary, income from house property, income from business and income from capital gains. Notices u/s 143(2) and 142(1) of the Act were issued which culminated into an assessment framed at a total income of Rs.6,79,41,340/- on 28.12.2011.

3.

The sole issue that arises for our adjudication is whether the Assessing Officer (hereinafter referred to as the AO) as well as the First Appellate Authority were right in holding that the assessee had not filed any documentary evidence with regard to the investment made in futures and options plan, to prove his claim of loss incurred thereon.

4.

After hearing rival contentions we find that the assessment proceedings for the A.Y. 2009-10 as well as for the A.Y. 2010-11 were being held simultaneously by the A.O. and that the assessee had submitted two letters dt. 9.12.2001, one each for the A.Y. 2009-10 and 2010-11. The evidences on loss on futures and options were wrongly attached to the letter dt. 9.12.2011 for the A.Y. 2010-11, though there was no such issue that arose in that year. In fact these evidences were to have been attached to the letter dt. 9.12.2011 for the A.Y. 2009-10. Thus a clerical mistake arose. This lead to both the A.O. as well as the Ld.CIT(A) coming to a conclusion that the assessee has not filed the necessary evidences as proof of the loss claimed on futures and options.

5.

In view of the above discussion, in the interest of justice, we set aside the matter to the file of the A.O. for fresh adjudication in accordance with law, after considering the evidences in question.

6.

In the result the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the Open Court on 10th June, 2016.

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