ITO, NEW DELHI vs. SH. UMA SHANKAR KHANNA, NEW DELHI

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ITA 3854/DEL/2012Status: DisposedITAT Delhi05 October 2015AY 2009-102 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal confirmed the CIT(A)'s order, finding that the assessee had indeed conducted share trading and incurred losses. The Assessing Officer's disallowance lacked valid reasons.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition of Rs. 16,10,220/-. The core issue was whether capital loss on shares should be treated as business loss.

What were the issues?

Whether capital loss on shares can be treated as business loss, and if the CIT(A) was justified in deleting the addition made by the Assessing Officer.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.C. GUPTA, VICE & BEFORE SHRI G.C. GUPTA & SHRI SHRI PRASHANT MAHARISHI SHRI SHRI

For Appellant: Shri J.P. Chandrekar, Sr.DR
For Respondent: Shri P.K. Bahl, CA
Hearing: 08.09.2015Pronounced: 05.10.2015

PER G.C. GUPTA PER G.C. GUPTA, VP PER G.C. GUPTA PER G.C. GUPTA , VP , VP : , VP This appeal by the Revenue for the assessment year 2009-10 is directed against the order of learned CIT(A)-XXV, New Delhi dated 14th May, 2012.

2.

The grounds of appeal of the Revenue are as under:-

1.

“1. The ld.CIT(A) has grossly erred in deleting the addition of Rs.16,10,220/- without any basis and evidence.

2. Whether the ld.CIT(A) was right in treating the capital loss as share trading business loss despite the fact that the assessee had made investment in shares.”

3.

Learned DR has relied on the order of the Assessing Officer. He referred to relevant portion of the assessment order in support of the 2 ITA-3854/Del/2012 case of the Revenue. Learned counsel for the assessee has relied on the order of the learned CIT(A).

4.

We have heard the rival submissions and have perused the order of the Assessing Officer and the learned CIT(A). We find that the learned CIT(A) has given a finding that the assessee has done the share trading transactions through its brokers viz., M/s Kotak Securities and M/s Globle Capital Market in the share market in the shares of the reputed companies/stocks and, in the process, had suffered huge losses and, therefore, the Assessing Officer was not justified in disallowing the claim of the assessee without any valid reasons. We find that the Assessing Officer has not given any cogent and valid reason while making the disallowance. In the absence of any material to justify the order of the Assessing Officer in making the disallowance of the loss incurred in share trading by the assessee, we confirm the order of learned CIT(A) and, accordingly, the grounds of appeal

of the Revenue are dismissed.

5. In the result, the appeal of the Revenue is dismissed. Decision pronounced in the open Court on 5th October, 2015.

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