RAJESH R. DAGA,MUMBAI vs. ITO 14(1)(1), MUMBAI

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ITA 2963/MUM/2015Status: DisposedITAT Mumbai14 July 2016AY 2004-053 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the lower authorities had not properly examined the evidence regarding the loss. Therefore, the issue was restored to the AO for fresh verification and consideration of the assessee's claim.

What were the facts?

The assessee claimed a short-term capital loss, which was disallowed by the AO. The assessee filed a rectification petition under Section 154, but the AO partially allowed it, disallowing a portion of the loss. The CIT(A) dismissed the assessee's ground regarding the disallowed loss.

What were the issues?

Whether the AO and CIT(A) properly examined the evidence regarding the short-term capital loss claimed by the assessee.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”, BENCH MUMBAI

Before: SHRI R.C.SHARMA

Hearing: 14/07/2016Pronounced: 14/07/2016

आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ ‘एस.एम.सी’, म ुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER आमकय अऩीर सं./ (नििाारण वषा / Assessment Year :2004-2005) Shri Rajesh R Daga, 8th Vs. ITO-14(1)(1), Mumbai Floor, Suraj CHS Ltd., 71, Bhulabhai Desai Road, Mumbai-400026 स्थामी रेखा सं./ जीआइआय सं./ PAN/GIR No. : AEWPD 7914 A (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee by : Shri Vipul Joshi, Keyuri Desai याजस्व की ओर से /Revenue by : Shri Neil Philip सुनवाई की तायीख / Date of Hearing : 14/07/2016 घोषणा की तायीख/Date of Pronouncement 14/07/2016 आदेश / O R D E R This is an appeal filed by the assessee against the order of CIT(A), Mumbai, for the assessment year 2004-2005, in the matter of order passed u/s.154 of the I.T.Act.

2.

Rival contentions have been heard and record perused. In the assessment year under consideration the AO framed assessment u/s.143(3), wherein short term capital loss of Rs.6,88,716/- and Rs.6,06,116/- was disallowed on the plea that investments were sold ex- bonus basis. Assessee filed 154 petition before the AO for rectifying mistake with regard to these two losses. Contention of assessee in 154 petition was that short term capital loss of Rs.12,86,441/- was added to the total income for want of necessary details. The AO passed order u/s.154 dated 30-5-2008, wherein loss with respect to JM balance growth 2 fund was allowed. However, the AO did not consider loss of rs.6,06,115.76 on the plea that assessee is in appeal before the CIT(A) against the order of AO passed u/s.143(3).

3.

By the impugned order the CIT(A) dismissed this ground of assessee by observing that assessee has not filed details of such loss during the proceedings u/s.154.

4.

Ld. AR drew our attention to the details of loss incurred, which was duly filed before the lower authorities.

5. I have considered rival contentions, as per material placed on record I found that in respect of unit of IL&FS, bonus unit were allotted on 26-3-2004 at Rs.10,00,000 which were sold on 29-3-2004 for Rs.3,93,884.24, thus loss of Rs.6,06,116/- was incurred by the assessee. However the lower authorities have not properly examined these evidences placed on record by assessee. In the interest of justice and fair play, we restore this issue to the file of AO with a direction to verify the details and to consider afresh assessee’s claim of loss of Rs.6,06,116/- as per law. We direct accordingly.

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