ACIT Circle-2, Muzaffarnagar V. R.A. Castings (P) Ltd, Muzaffarnagar

ITA 3048/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9892 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 02-09-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 03-10-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H K LAL
• Assessee Lawyers: V K TULSIYAN
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F : NEW DELHI BEFORE SHRI D.R.SINGH, JM AND SHRI R.C.SHARMA, AM ITA NO.3048/DEL/2008 ASSESSMENT YEAR : 2005-06 ASSTT.COMMISSIONER OF INCOME TAX, CIRCLE-2, MUZAFFARNAGAR. VS. M/S R.A.CASTINGS (P) LTD., 7 TH KM STONE, MEERUT ROAD, DISTRICT MUZAFFARNAGAR. PAN NO.AABCR7704G. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI H.K.LAL, DR. RESPONDENT BY : SHRI V.K.TULSIYAN, ADVOCATE. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 9.7.2008 FOR THE AY 2005-06, WHEREIN REVENUE IS AGG RIEVED FOR TREATING THE LOSS ON SALE OF SHARES AS BUSINESS LOSS, IN PLACE OF AO S ACTION IN TREATING THE SAME AS INCOME FROM OTHER SOURCES. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. IN THE COURSE OF SCRUTINY ASSESSMENT, THE AO HAS TREATED THE PROFIT ON SALE OF SHARES AS INCOME FROM OTHER SOURCES AND ACCORDINGLY DID NOT ALLOW SETTING OFF OF CARRY FORWARD OF BUSINESS LOSS AGAINST SUCH BUSINESS INCOME. BY THE IMPUGNED ORDER, THE CIT(A) AFTER FOLLOWING THE ORDER OF ITAT IN THE GROUP CASE S OF THE ASSESSEE M/S DOABA ROLLING MILLS PVT.LTD. FOR AY 1995-96, 2000-01 & 20 04-05 AND ALSO M/S BARNALA STEEL INDUSTRIES LTD. FOR AY 2004-05, AND ALSO IN A SSESSEES OWN CASE FOR AY 2001-02 HELD THAT INCOME FROM SHARES TRADING SHOULD BE ASSESSED AS BUSINESS INCOME. THE LEARNED AR ALSO PLACED ON RECORD THE C OPY OF THE ORDER OF ITAT IN CASE OF GROUP COMPANIES M/S BARNALA STEEL INDUSTRIE S LTD. DATED 12.9.2008 AND M/S DOABA ROLLING MILLS PVT.LTD. DATED 7.7.2009, WH EREIN UNDER SIMILAR FACTS AND CIRCUMSTANCES, INCOME FROM SALE AND PURCHASE OF SHA RES WAS TREATED AS INCOME ITA-3048/D/2008 2 FROM BUSINESS, RATHER THAN INCOME FROM OTHER SOURCE S. ONCE THE PROFIT ON SALE AND PURCHASE OF SHARES IS BEING TREATED AS BUSINESS INC OME, THE ASSESSEE HAS ALL THE RIGHTS TO CLAIM SET OFF OF ITS BUSINESS LOSS AS PER PROVISIONS OF SECTION 72, 72A & 72AA OF THE IT ACT. RESPECTFULLY FOLLOWING THE ORD ER OF THE COORDINATE BENCH, WE DIRECT THE AO TO CONSIDER ALLOWABILITY OF SETTIN G OFF OF CARRY FORWARD OF BUSINESS LOSS AS PER THE PROVISIONS OF SECTION 72, 72A & 72AA OF THE IT ACT. WE DIRECT ACCORDINGLY. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED IN TERMS INDICATED HEREINABOVE. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 2 ND SEPTEMBER, 2009. SD/- SD/- (D.R.SINGH) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 02.09.2009. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR