MANGALA D.NATH, MUMBAI V. DCIT 9(2), MUMBAI

ITA 1517/MUM/2011

• Counselvise Citation: 151719914 RSA 2011
• Duration Of Justice: 2 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 22-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Keywords: Capital asset
• Section: 143(3)

Judgement Text

, CH CHCH CH INCOME TAX APPELLATE TRIBUNAL,MUMBAI - B BENCH. . .. . . .. . , ,, , !'#$ !'#$ !'#$ !'#$ , ' ' ' ' %& %& %& %& BEFORE S/SH.H.L.KARVA,PRESIDENT & RAJENDRA,ACCOUNTA NT MEMBER /. ITA NO. 1517/MUM/2011 , ' ' ' ' ( ( ( ( / ASSESSMENT YEAR-2007-08 MANGALA D. NATH C-1/5, SARATHI CHS KHIRA NAGAR, S.V.ROAD, SANTACRUZ (WEST) MUMBAI- 400054 VS. DCIT 9(2), MUMBAI. PAN:AAEPN0529R ( )* / APPELLANT ) ( +,)* / RESPONDENT ) )* )* )* )* - - - - ' '' ' / APPELLANT BY : NONE +,)* . - ' / RESPONDENT BY : SHRI SURENDRA KUMAR ' ' ' ' . .. . /0 /0 /0 /0 / DATE OF HEARING : 18 -12-2013 12( . /0 / DATE OF PRONOUNCEMENT : 18-12-2013 PER RAJENDRA, A.M. CHALLENGING THE ORDER DATED 14.12.2010 OF THE CIT(A )-20 MUMBAI,ASSESSEE HAS FILED FOLLOWING GROUNDS OF APPEAL: BEING AGGRIEVED BY THE ORDER PASSED BY THE COMMISSI ONER OF INCOME TAX (APPEALS) 20, MUMBAI, YOUR APPELLANT SUBMIT THE FOLLOWING GROUND FOR YOUR SYMP ATHETIC CONSIDERATION THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 20 , MUMBAI HAS ERRED IN CONFIRMING THE DECISION OF THE ASSESSING OFFICER IN REFUSING TO ALLOW DEDUCTIO N OF AN AMOUNT OF RS. 8,05,929 /- WHILST COMPUTING SHORT TERM CAPITAL GAINS AS PER DETAILS GIVEN BELOW (1) MANAGEMENT FEES PAID TO KOTAK SECURITIES LTD. 6,73,440 (2) PAID BY WAY OF INTEREST 41,682 (3) SECURITY TRANSACTION TAX 90,807 8,05,9 29 IT IS SUBMITTED THAT THE APPELLANTS WEALTH IS MANA GED BY INVESTMENT MANAGERS VIZ KOTAK SECURITIES LTD . DURING THE YEAR UNDER APPEAL, THE APPELLANT EARNED SHORT TERM CAPITAL GAINS OF RS.72,47,010/- AND INCURRED EXPENSES OF RS.8,05,929/- AS PER DETAILS G IVEN ABOVE FOR EARNING SUCH SHORT TERM CAPITAL GAIN S. IT IS SUBMITTED THAT IT IS THE APPELLANTS CONTENTI ON THAT THE IMPUGNED EXPENDITURE REFERRED TO ABOVE IS SOUGHT TO BE CLAIMED U/S. 45 (1) OF THE INCOME TAX ACT IN THE COURSE OF COMPUTING PROFITS OR GAINS ARI SING FROM THE TRANSFER OF A CAPITAL ASSET. IT IS FURTHER SUBMITTED THAT NO PROFITS OR GAINS CAN BE COMPUTED IN ACCORDANCE WITH THE GENERALLY ACCEPTED ACCOUNTING P RINCIPLES UNLESS ALL EXPENDITURE INCURRED TO EARN SUCH INCOME IS ALLOWED AS A DEDUCTION TO COMPUTE TH E TRUE COMMERCIAL PROFITS. THE APPELLANT HAS NOT CLAIMED SUCH EXPENDITURE U/S. 48 BECAUSE IT IS THE APPELLANTS CONSIDERED VIEW T HAT ONE CAN GO TO SECTION 48 ONLY AFTER THE PROVISIONS OF SECTION 45 (1) ARE GIVEN FULL EFFECT TO. YOUR APPELLANT, THEREFORE, PRAYS THAT THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 20, MUMBAI, BE SET ASIDE AND THE APPELLANTS CLAIM BE A LLOWED ON THE BASIS OF THE FACTS AND THE LAW IN THE MATTER. THE APPELLANT RESERVES THE RIGHT TO ADD TO, ALTER O R AMEND THE ABOVE GROUNDS, IF FELT NECESSARY. 2 ITA NO.1517/MUM/2011 MANGALA D. NATH 2. ASSESSEE, AN INDIVIDUAL, FILED HER RETURN OF INCOME ON 27.07.2007 DECLARING TOTAL INCOME AT RS. 79.48 LACS. ASSESSING OFFICER(AO) FINALISED THE ASSESSMENT ON 22.10.2009, U/S. 143(3) OF THE ACT, DETERMINING HER INCOME AT RS. 87.54 LACS.BEING AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER(AO),ASSESSEE FILED AN APPEAL BEFORE THE FIR ST APPELLATE AUTHORITY(FAA) WHO DISMISSED THE APPEAL. 3 . DURING THE COURSE OF HEARING, AUTHORISED REPRESEN TATIVE(AR) OF THE ASSESSEE SUBMITTED THAT ASSESSEE WANTED TO WITHDRAW THE APPEAL.DEPARTMENTAL REPRESENTATIVE(DR) SAID THAT HE HAD NO OBJECTION IF ASSESSEE WAS ALLOWED TO WITHDRAW THE A PPEAL. THEREFORE, APPEAL FILED BY THE ASSESSEE IS DISMISSE D AS WITHDRAWN. AS A RESULT,APPEAL FILED BY THE ASSESS EE STANDS DISMISSED. 3 &4 ' 3/ . UK UKUK UK !5 . !/ 67. ORDER PRONOUNCED IN THE O PEN COURT TODAY I.E. 18 TH DECEMBER,2013 . %'8 . 12( ' # 9 :%' 18 FNLACJ FNLACJ FNLACJ FNLACJ , 2013 2 . ;. SD/- SD/- ( . . - H.L.KARWA) ( !'#$ !'#$ !'#$ !'#$ / RAJENDRA) / PRESIDENT ' ' ' ' %& %& %& %& /ACCOUNTANT MEMBER / MUMBAI, :%' /DATE: 18 TH DECEMBER,2013 SK %'8 %'8 %'8 %'8 . .. . +/< +/< +/< +/< ='<(/ ='<(/ ='<(/ ='<(/ / COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE / )* 2. RESPONDENT / +,)* 3. THE CONCERNED CIT (A) / > ? , 4. THE CONCERNED CIT / > ? 5. DR B BENCH, ITAT, MUMBAI / <@; +/' CH CHCH CH , . . # . 6. GUARD FILE/ ; A ,