Deepak N.Gandhi, Ahmedabad V. The Dy.CIT.,Cent.Circle-2(4), Ahmedabad

ITA 332/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6370 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 25-05-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 30-01-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C K MISHRA
• Assessee Lawyers: VIJAY RANJAN
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND A. N. PAHUJA, AM) ITA NO.332/AHD/2008 A. Y.: 2005-06 DEEPAK N. GANDHI, HUF 8, MAHAVIR TOWR, PALDI AHMEDABAD PA NO. AAAHG 9618 L VS THE D. C. I. T., CIRCLE -2(4), AAYAKAR BHAVAN, ASHRAM ROAD, AHMEDABAD (APPELLANT) (RESPONDENT) APPELLANT BY SHRI VIJAY RANJAN, AR RESPONDENT BY SHRI C. K. MISHRA, DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-III, AHMEDABAD DATE D 06-09-2007 FOR ASSESSMENT YEAR 2005-06, CHALLENGING THE UPHOLDING OF THE DISALLOWANCE OF DEDUCTION FOR SHORT TERM CAPITAL LOSS OF RS.1,70 ,346/- MADE BY THE AO INVOKING SECTION 94(7) OF THE IT ACT. 2. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT THE AO MADE THE DISALLOWANCE BECAUSE THE ASSESSEE D ID NOT PROVIDE THE REQUISITE DETAILS IN RESPECT OF THE CLAIM ON SHORT TERM CAPITAL LOSS. THE AO ACCORDINGLY DISALLOWED THE CLAIM BY INVOKING THE PROVISIONS OF SECTION 94(7) OF THE IT ACT. HE HAS SUBMITTED THAT IN THE G ROUP CASE OF THE ASSESSEE NAMELY HEMENDRA N. GANDHI AND OTHERS, ITAT AHMEDABAD A BENCH IN SEVERAL CASES RESTORED THE MATTER BACK TO THE FILE OF THE AO TO PASS SPEAKING ORDER AS TO WHETHER SECTION 94(7) OF THE IT ACT IS APPLICABLE TO THE FACTS OF THE CASE VIDE ORDER DATE D 21-05-2010. COPY OF THE ORDER IS FILED ON RECORD. THE LEARNED COUNSEL F OR THE ASSESSEE ACCORDINGLY SUBMITTED THAT SINCE SIMILAR MATTER IS INVOLVED IN THE PRESENT APPEAL, THEREFORE, THE MATTER MAY BE RESTORED TO TH E FILE OF THE AO FOR ITA NO.332/AHD/2008 DEEPAK N. GANDHI, HUF V DCIT 2 RECONSIDERATION AS PER DIRECTION OF THE TRIBUNAL. O N THE OTHER HAND, THE LEARNED DR DID NOT DISPUTE THE ORDER OF THE TRIBUNA L DATED 21-05-2010 AND AGREED THAT THE MATTER MAY BE REMANDED TO THE F ILE OF THE AO FOR RECONSIDERATION. 3. ON CONSIDERATION OF THE SUBMISSIONS OF THE PARTI ES, WE ARE OF THE VIEW THAT THE MATER REQUIRES RECONSIDERATION AT THE LEVEL OF THE AO. THE AO HAS NOTED THAT THE ASSESSEE HAS NOT FURNISHED RE QUISITE DETAIL BEFORE HIM. THE ITAT AHMEDABAD BENCH IN THE GROUP CASES OF THE ASSESSEE IN THE CASES OF HEMENDRA N. GANDHI AND OTHERS VIDE ORD ER DATED 21-05-2010 ON THE IDENTICAL ISSUE RESTORED THE MATT ER TO THE FILE OF THE AO WITH DIRECTION TO THE ASSESSEE TO PRODUCE RELEVA NT DETAILS BEFORE THE AO AND THE AO WAS DIRECTED TO PASS SPEAKING ORDER A S TO WHETHER SECTION 94(7) OF THE IT ACT IS APPLICABLE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. BY FOLLOWING THE SAME ORDER OF THE GROUP CASE , WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THIS IS SUE TO THE FILE OF THE AO WITH A DIRECTION TO THE ASSESSEE TO PRODUCE RELEVAN T DETAILS BEFORE THE AO AND THEREAFTER THE AO SHALL PASS SPEAKING ORDER AS TO WHETHER SECTION 94(7) OF THE IT ACT IS APPLICABLE ON THE FACTS OF T HE ASSESSEES CASE. 4. AS A RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 25-05-2010 SD/- SD/- (A. N.PAHUJA) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 25- 05-2010 LAKSHMIKANT/- ITA NO.332/AHD/2008 DEEPAK N. GANDHI, HUF V DCIT 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD