SHRI SANJAY VISHNUPRASAD AGRAWAL,NAGPUR vs. INCOME TAX OFFICER, WARD-4(1), NAGPUR

This assessee’s appeal for assessment year 2015-16 arises against the National Faceless Appeal Centre “NFAC”, Delhi’s order dated 21.12.2021 passed in case no.ITBA/NFAC/S/250/2021- 22/1037993785(1), involving proceedings u/s 154 of the Income Tax Act, 1961; in short “the Act”. Heard both the parties. Case file perused.

The assessee raises the following substantive grounds in the instant appeal :- “1. That on facts and circumstances of case, as well as also in law, the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi erred in not allowing the set off of Loss Rs 3,33,972/- as claimed during the course of assessment proceeding and also erred in confirming the rejection of the Application u/s 154 by the Assessing Officer filed by assessee. 2. That on facts and circumstances of case, as well as also in law, assessee is entitled for the set off of Loss at Rs 3,33,972/- as claimed by him and the Learned Assessing Officer ought to have allowed the set off of loss at Rs 3,33,972/- as claimed by assessee. 3. That on facts and circumstances of case, as well as also in law, in view of the clear provisions of the section 71(1) of the Income Tax Act, 1961, the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) Delhi erred to held that the issue is debatable and in these circumstances it cannot be said that there was a mistake apparent from the record which can be rectified u/s 154 of the Income Tax Act, 1961 instead of directing to the Assessing Officer to allow the Loss assessed for the F & O Shares Transactions at Rs. 3,33,972/- to Set Off against all income under Other Heads of Income shown by assessee and assessed by the Assessing Officer.” 3. Learned counsel vehemently reiterated the assessee’s stand that both the learned lower authorities have erred in law and on facts in declining the impugned section 154 rectification. I find no merit in the assessee’s instant argument once it has come on record that the question of current year’s loan adjustment amounting to Rs.3,33,972/- derived from Future and Option (F&O) shares transaction against the income from other heads hardly forms a subject matter of rectification in light of CIT vs. Pruthvi Brokers & Shareholders (P) Ltd. [2012] 23 taxmann.com 23 (Bom.) being a debatable issue to be decided as per the relevant facts on record. Faced with this situation, learned counsel sought to withdraw the instant appeal subject to the condition that the delay all along since filing of rectification herein dated 27.01.2020 is condoned for the