ACIT, Circle -31, Kolkata, Kolkata V. M/s Sanjay Commercial Company, Kolkata

ITA 160/KOL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4654 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 18-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 28-01-2014
• Court: TRIBUNAL
• Department Lawyers: MD S S ALAM
• Assessee Lawyers: N O N E
• Keywords: Tax effect

Judgement Text

I.T.A. NO. 160/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISHWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 160 /KOL/ 2014 ASSESSMENT YEAR: 2009-2010 ASSISTANT COMMISSIONER OF INCOME TAX,.............. ..................APPELLANT CIRCLE -31, KOLKATA, 10B, MIDDLETON ROW, 4 TH FLOOR, KOLKATA-700 071 -VS.- M/S. SANJAY COMMERCIAL COMPANY,.................... ....................RESPONDENT 234/3A, A.J.C. BOSE ROAD, 5 TH FLOOR, BLOCK BL, FMC FORTUNA, KOLKATA-700 020 [PAN: ABFFS 3792 P] APPEARANCES BY: MD. S.S. ALAM, JCIT, SR. D.R., FOR THE DEPARTMENT N O N E, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JULY 18, 2016 DATE OF PRONOUNCING THE ORDER : AUGUST 10, 2016 O R D E R PER SHRI P.M. JAGTAP, A.M .: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XIX, KOLKATA D ATED 04.11.2013 FOR THE ASSESSMENT YEAR 2009-10 ON THE FOLLOWING GROUND S:- 1. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN TREATING THE LOSS OF RS.11,45,430/- AS BUSINESS LOSS AS AGAINST AOS CLAIM OF CAPITAL LOSS (LONG TERM CAPITAL LOSS (NON- STT) AND SHORT-TERM CAPITAL LOSS (NON-STT) ARISING OUT OF SALE AND PURCHASE OF SHARES. 2. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN TREATING CAPITAL LOSS AS BUSINESS LOSS JUST ON THE BASIS OF DECLARAT ION OF THE CLOSING STOCK OF SHARES AS STOCK-IN-TRADE AN D ASSESSEES INCOME FROM PROFIT FROM THE SHARES TRADING WAS ACCEPTED IN EARLIER YEAR. I.T.A. NO. 160/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 2 OF 3 3. FOR THAT IN ANY EVEN TREATMENT OF SHARE TRADING LOSS OF RS.22,45,430/- AS BUSINESS LOSS IS BAD IN L AW AS WELL AS ON FACTS. 2 WE HAVE HEARD THE LD. D.R. AND PERUSED THE RELEVA NT MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE TAX EFFECT IN VOLVED IN THIS APPEAL OF THE REVENUE IS LESS THAN THE REVISED MONETARY LIMIT RECENTLY FIXED BY THE CBDT VIDE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 AT RS.10,00,000/- FOR FILING THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL AND THIS POSITION CLEARLY EVIDENT FROM THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL IS NOT DISPUTED EVEN BY THE LD. D.R. IN CIRCULAR NO. 21/2015 (SUPRA) RECENTLY ISSUED BY THE CBDT, THE MONETARY L IMIT FOR FILING THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL HAS BEEN INCREASED TO RS.10,00,000/- AND AS CLARIFIED IN THE SAID CIRCULA R, THE SAID MONETARY LIMIT IS APPLICABLE RETROSPECTIVELY EVEN TO THE APP EALS PENDING BEFORE THE TRIBUNAL. THE CBDT HAS ALSO INSTRUCTED THAT SUCH PE NDING APPEALS BELOW THIS SPECIFIED TAX LIMIT OF RS.10,00,000/- MAY BE W ITHDRAWN/ NOT PRESSED. KEEPING IN VIEW THE INSTRUCTION GIVEN BY THE CBDT V IDE CIRCULAR NO. 21/2015 DATED 10.12.2015, WHICH IS SQUARELY APPLICA BLE IN THE PRESENT CASE, THE APPEAL FILED BY THE REVENUE IN THIS CASE IS TREATED AS WITHDRAWN/NOT PRESSED AND DISMISSED ACCORDINGLY. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON AUGUST 10, 20 16. SD/- SD/- (S.S. VISHWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT ME MBER KOLKATA, THE 10 TH DAY OF AUGUST, 2016 COPIES TO : (1) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE -31, KOLKATA, 10B, MIDDLETON ROW, 4 TH FLOOR, KOLKATA-700 071 (2) M/S. SANJAY COMMERCIAL COMPANY, 234/3A, A.J.C. BOSE ROAD, 5 TH FLOOR, BLOCK BL, FMC FORTUNA, KOLKATA-700 020 I.T.A. NO. 160/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 3 OF 3 (3) COMMISSIONER OF INCOME TAX (APPEALS)-XIX, KOLK ATA; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.