ITO 8(3)(4), MUMBAI vs. VIRAL CHEMICALS P. LTD, MUMBAI

The aforesaid appeal has been filed by the Revenue against impugned order dated 25/05/2011 passed by the CIT(A)-18, Mumbai in respect of the order of assessment passed u/s 143(3) for the assessment year 2000-01, on the following grounds:-

1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance of Rs. 11,73,760/- shown by the assessee without appreciating the fact that the assessee and all its various group concerns and companies have shown such trading losses year after year since A.Yr. 2000-01 till A.Yr. 2006-07, which are nothing but mere non-genuine paper transactions shown to reduce their tax liability on incomes from other heads.

2. “On the facts and in the circumstances of the case and in law, the Hon’ble Income Tax Appellate Tribunal being the final fact finding authority may exercise its discretion and call for the assessment records of the assessee and all its group concerns and companies since AYr. 2000-01 and examine the quantum of trading loss shown by each of them in various years and determine the nature of such losses, which no prudent businessman would incur year after year.

The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the ITO/ACIT/DCIT be restored.