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Income Tax Appellate Tribunal, “H” BENCH, MUMBAI
Per B R Baskaran, AM:
Both the appeals filed by the Revenue are directed against the orders passed by the ld.CIT(A)-6, Mumbai and they relate to the assessment years 2003-04 and 2004-05. 2. None appeared on behalf of the assessee even though the notice was served to the assessee through the Revenue and hence, we proceed to dispose of the appeals ex-parte, without the presence of the assessee.
The common issue urged in both the appeals relates to the decision of ld.CIT(A) in allowing the loss arising from sale of shares as trading loss.
We heard the ld.DR and perused the record. We notice that the assessee has sold unquoted shares held by it in some related concern and incurred loss. The assessee claimed the same against other income, treating the loss as trading loss. The AO took the view that the assessee has sold the shares only to generate loss and set off the same against the other income and accordingly took the view that the same is non-genuine. Accordingly, he disallowed the claim of loss arising from sale of sale of shares. The ld. CIT(A), however, took the view that the loss arising to the assessee is a trading loss. Accordingly, he directed the AO to allow the claim of the assessee.
We notice that the AO has treated the loss as non-genuine, whereas the ld. CIT(A) has adjudicated the issue by treating the loss as trading loss. In effect, we notice that the ld.CIT (A) has not addressed the view expressed by the AO. Accordingly, in our view, this issue requires fresh examination at the end of the ld.CIT(A) in both the years. Accordingly, we set aside the order of ld. CIT(A) passed in both the years under consideration and restore the matters to his file with a direction to adjudicate the same afresh after providing an adequate opportunity of being heard to the assessee.
In the result, both the appeals filed by the revenue are allowed for statistical purposes. Pronounced accordingly on 11th Feb , 2016. घोषणध खुरे न्मधमधरम भें ददनधंकः 11th Feb 2016 को की गई । (PAWAN SINGH) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER भुंफई Mumbai: 11th Feb , 2016. व.नन.स./ SRL , Sr. PS आदेश की प्रतिलऱपप अग्रेपिि/Copy of the Order forwarded to : अऩीरधथी / The Appellant 1. प्रत्मथी / The Respondent. 2. आमकय आमुक्त(अऩीर) / The CIT(A)- concerned 3. आमकय आमुक्त / CIT concerned 4. ववबधगीम प्रनतननधध, आमकय अऩीरीम अधधकयण, भुंफई /
DR, ITAT, Mumbai concerned गधर्ा पधईर / Guard file. 6. आदेशधनुसधय/ BY ORDER,सहधमक ऩंजीकधय (Asstt.