ACIT, CHENNAI V. Hemant Chamanlal Shah, CHENNAI

ITA 1990/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7638 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2017
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 22-02-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 01-07-2016
• Court: TRIBUNAL
• Department Lawyers: N GOPI KRISHNA JT
• Assessee Lawyers: ASHOK KUMAR JAIN
• Section: 143(3); 147

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C/SMC, CHENNAI , ! BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER ./ITA NO.1990/MDS/2016 ' # $%# / ASSESSMENT YEAR : 2007-08 ASST. COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE-1(1), FORMERLY KNOWN AS BUSINESS CIRCLE-1, CHENNAI. ( &' /APPELLANT) VS. HEMANT CHAMANLAL SHAH, FLAT NO.3E, SPL GANDHARAVA COURT, 10 TH COATS ROAD, T. NAGAR, CHENNAI 600 017. [PAN: AADPS 5121P] ( ()&' /RESPONDENT) &' * + /APPELLANT BY : SHRI N. GOPIKRISHNA, JT. CI T ()&' * + /RESPONDENT BY : SHRI ASHOK KUMAR JAIN, FCA , $ * - /DATE OF HEARING : 22.02.2017 .% * - /DATE OF PRONOUNCEMENT : 02.03.2017 /O R D E R PER SANJAY ARORA, AM : THIS IS AN APPEAL BY THE REVENUE AGITATING THE ORD ER BY THE COMMISSIONER OF INCOME TAX (APPEALS)-2, CHENNAI (CIT(A) FOR SH ORT) DATED 31.03.2016, PARTLY ALLOWING THE ASSESSEES APPEAL CONTESTING IT S ASSESSMENT U/S. 143(3) R/W. S. 147 OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAF TER) DATED 27.03.2013 FOR THE ASSESSMENT YEAR (AY) 2007-08. 2 ITA NO.1990/MDS/2016 (AY 2007-08) ASST. CIT V. HEMANTH CHAMANLAL SHAH 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE RETURNED HIS INCOME FOR THE RELEVANT YEAR ON 31.07.2007 AT . 5,31,500/-, I.E., AS SHORT CAPITAL GAIN (STCG), AFTER ADJUSTING SHORT TERM CAPITAL LOSS (STCL) OF . 1,18,497/-, WHICH WAS STATED IN THE RETURN (UNDER THE RELEVANT SCHEDULE) AS LIABLE TO BE IGNORED U/SS. 94(7) OR S. 94(8). IN ASSESSMENT, IT WAS EXPLAINED THAT THIS STATEMENT WAS BY WAY OF A MISTAKE AS NEITHER ANY BONUS SHARES NOR DIVIDE ND STOOD RECEIVED IN RESPECT OF THE RELEVANT SCRIPS, SIX IN NUMBER, DURING THE Y EAR. THIS DID NOT FIND ACCEPTANCE WITH THE ASSESSING OFFICER (AO) AS THE H OLDING STATEMENT FROM THE DEPOSITORY PARTICIPANT (DP) WAS NOT FURNISHED. IN A PPEAL, THE ASSESSEE FURNISHED THE EXTRACT OF THE BONUS DETAILS OF THE CONCERNED C OMPANIES FROM THE WEBSITE OF THE BOMBAY STOCK EXCHANGE (BSE), WHEREAT THE SCRIPS WERE LISTED. IN FACT, THE TOTAL LOSS (STCL) SUFFERED WAS . 7,77,437/-, OF WHICH . 6,58,945/-, BEING ON TWO SCRIPS BOUGHT CUM BONUS AND SOLD EX-BONUS, WITH IN THREE MONTHS, WAS NOT ADJUSTED (SET OFF), BUT CARRY FORWARD. THE LD. CIT( A) FOUND MERIT IN THE ASSESSEES CASE AND DIRECTED THE AO TO ALLOW THE AS SESSEES CLAIM QUA THE IMPUGNED SET OFF IF FOUND CORRECT BY PASSING A SPEA KING ORDER. AGGRIEVED, THE REVENUE IS IN APPEAL. 3. THE PARTIES WERE HEARD, AND THE MATERIAL ON REC ORD PERUSED. THE LD. DEPARTMENTAL REPRESENTATIVE (DR) COULD NOT POINT OU T ANY INFIRMITY IN THE IMPUGNED ORDER AT THE TIME OF HEARING, EVEN AS THE LD. AUTHORIZED REPRESENTATIVE (AR) REITERATED THE ASSESSEES CASE. THE LD. CIT(A) HAS CLEARLY REQUIRED THE AO TO SATISFY HIMSELF AS TO THE VERACI TY OF THE ASSESSEES CLAIM AND DECIDE IN VIEW OF HIS FACTUAL FINDINGS, IN ACCORDAN CE WITH LAW. BY FURNISHING THE BONUS DETAILS FROM AN AUTHENTICATED SOURCE (WEBSITE OF THE BSE), THE ASSESSEE HAS DISCHARGED THE PRELIMINARY ONUS ON IT TO SUBSTA NTIATE ITS CLAIM OF SET OFF OF STCL TO THE EXTENT OF . 1.18 LACS. AT THE SAME TIME, HOWEVER, THERE IS NO QUESTION OF CARRY FORWARD OF THE BALANCE STCL OF . 6.59 LACS INCURRED IN THE SCRIPS OF CROMPTON GREAVES AND SUNDARAM FASTENERS I N-AS-MUCH AS THE SAME IS 3 ITA NO.1990/MDS/2016 (AY 2007-08) ASST. CIT V. HEMANTH CHAMANLAL SHAH TO BE IGNORED, AND IN FACT HAS BEEN IN RETURNING TH E INCOME FOR THE CURRENT YEAR, IN VIEW OF SEC. 94(8). WHEN SUCH LOSS IS TO BE NOT TAKEN COGNIZANCE OF, WHERE IS THE QUESTION OF IT BEING CARRIED FORWARD. THE APPEA L EFFECT GIVING ORDER BY THE AO SHALL, ACCORDINGLY, STATE THE LOSS SET OFF, AND THAT WHICH COULD, WHERE SO, BE CARRY FORWARD TO THE SUBSEQUENT YEARS FOR SET OFF. I DECIDE ACCORDINGLY. 4. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED ON MARCH 02, 2017 AT CHENNAI . SD/- ( ) (SANJAY ARORA) /ACCOUNTANT MEMBER /CHENNAI, / /DATED, MARCH 02, 2017. EDN 0 * ('-12 32%- /COPY TO: 1. &' /APPELLANT 2. ()&' /RESPONDENT 3. , 4- ( )/CIT(A) 4. , 4- /CIT 5. 2$56 ('-' /DR 6. 67# 8 /GF