Deputy Commissioner of Income Tax, Circle-1, Jaipur V. Wealthy Sky Development, Jaipur

ITA 23/JPR/2023

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A) which had deleted the additions made by the Assessing Officer (AO) regarding the disallowance of setting off a speculative loss of Rs.74,43,978 from business income for the assessment year 2016-17. The AO had initially disallowed this set off under Section 73(1) of the Income Tax Act. The CIT(A)'s decision to delete this addition was supported by a previous ITAT decision in a similar case involving the same assessee. The Tribunal, after reviewing the materials and precedents, agreed with the CIT(A) and dismissed the Revenue's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132463 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-02-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 18-01-2023
• Other Referred Cases: ITA No. 15/JP/2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income; Revision of order; Speculation loss
• Section: 263; 143(3); 73(1)

Judgement Text

vk;djvihyh; vf/kdj.k] t;iqjU;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR JhlaanhixkslkbZ]U;kf;dlnL; ,oaJhjkBksMdeys'kt;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;djvihy la-@ITA No. 23/JP/2023 fu/kZkj.ko"kZ@Assessment Year :2016-17 The DCIT Circle-1 Jaipur cuke Vs. M/s. Wealthy Sky Development 30, Krishan Nagar, Janpath Shyam Nagar, Extn. Area Jaipur LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAACK 7048 P vihykFkhZ@Appellant izR;FkhZ@Respondent jktLo dh vksj ls@Revenue by: Shri Ajey Malik, CIT-DR fu/kZkfjrh dh vksj ls@Assessee by : Shri Manish Agarwal, CA lquokbZ dh rkjh[k@Date of Hearing : 22/02/2023 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 29 /03/2023 vkns'k@ORDER PER: SANDEEP GOSAIN, JM This appeal filed by the Revenue is directed against order of the ld. CIT(A) dated 24-11-2022, National Faceless Appeal Centre, Delhi [ hereinafter referred to as (NFAC) ] for the assessment year 2016-17 wherein the Revenue has raised the following solitary ground of appeal. 2 ITA NO. 23/JP/2023 DCIT, CIRCLE-1, JAIPUR VS WEALTHY SKY DEVELOPMENT, JAIPUR ‘’Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) was justified in deleting the additions of Rs.74,43,978/- made on account of disallowance of setting off of speculative loss.’’ 2.1 During the course of hearing, the ld. DR supported the order of the AO wherein the AO disallowed the set off of speculative loss of Rs.74,43,978/- from business income as per Section 73(1) of the Act. 2.2 On the other hand, the ld. AR of the assessee supported the order of the ld.CIT(A) and also the decision of ITAT Jaipur Bench in ITA No.15/JP//2021 in the case of the assessee. 2.3 We have heard both the parties and perused the materials available on record. It is noted that the ld. CIT(A) has taken the resort of ITAT Jaipur Bench in the case of the assessee in ITA No. 15/JP/2021 dated 27-06-2022 for the assessment year 2016-17 by observing as under:- ‘’8.2 As seen from the above order in ITA No. 15/JP/2021 dated 27-06-29022, the Hon’ble ITAT Jaipur Bench-B, Jaipur allowed the appeal filed by the appellant against the order of the Commissioner of Income Tax-1, Jaipur passed u/s 263 of the Income Tax Act, 1961 dated 25-03-2021, consequent upon which the Assessing Officer passed order u/s 143(3) r.w.s. 263 of the Income Tax Act, 1961 dated 21-03-2002 by making disallowance of Rs.74,76,448/-.Thus consequent to following the appeal of the 3 ITA NO. 23/JP/2023 DCIT, CIRCLE-1, JAIPUR VS WEALTHY SKY DEVELOPMENT, JAIPUR appellant filed against the order u/s 263 of the Act dated 25-03-2021, the order u/s 143(3) r.w.s. 263 of the Income Tax Act, 1961 on which the present appeal pending is nulled and has no legs to stand. Accordingly, the present appeal filed by the appellant against the order u/s 143(3) r.w.s. 263 of the Income Tax Act, 1961 dated 21-03- 2022 becomes infuctuous and is not required to be adjudicated separately as the order u/s 1d43(3) r.w.s. 263 of the Income Tax Act, 1961 passed by the Assessing Officer is nulled consequent to the order passed by the Hon’ble ITAT allowing the appeal filed by the appellant against the order u/s 263 of the Income Tax Act, 1961 dated 25-03-2021 passed by the Commissioner of Income Tax-1, Jaipur. 8.3 Therefore, all the grounds of appeal filed by the appellant are treated as allowed for statistical purposes.’’ The Bench noted that it has discussed the issue at length and given its verdict in the case of the assessee vide its order dated 27-06-2022 in ITA No. 15/JP/2021 for the assessment year 2016-17 which has been followed by the ld. CIT(A) in his order dated 24-11-2022. Hence, in view of the above deliberation, the Bench does not find any infirmity in the order of the ld. CIT(A) which is sustained. Thus the appeal of the Revenue is dismissed. 4 ITA NO. 23/JP/2023 DCIT, CIRCLE-1, JAIPUR VS WEALTHY SKY DEVELOPMENT, JAIPUR 3.0 In the result, the appeal filed by the Department is dismissed. Order pronounced in the open court on 29 /03/2023. Sd/- Sd/- ¼ jkBksM deys'k t;UrHkkbZ ½ ¼lanhi xkslkbZ½ (Rathod Kamlesh Jayantbhai) (Sandeep Gosain) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 29/03/2023 *Mishra vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- DCIT, Circle-1, Jaipur 2. izR;FkhZ@ The Respondent- M/s. Wealthy Sky Development , Jaipur 3. vk;dj vk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZ QkbZy@ Guard File (ITA No. 23/JP/2023) vkns'kkuqlkj@ By order, Asstt. Registrar