ITO, New Delhi V. M/s Mahavir Irrigatiion Pvt. Ltd., New Delhi

ITA 3666/DEL/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1375 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 06-02-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 12-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS PRAMILA SHARAN
• Assessee Lawyers: DHARMENDRA KUMAR
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E: NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER & SHRI C.M. GARG, JUDICIAL MEMBER ITA NO. 3666/DEL/2012 ASSESSMENT YEAR: 2005-06 ITO, WARD 6(1), NEW DELHI. VS. MAHAVIR IRRIGATION PVT. LTD., 44-A, JHANG CO. SOCIETY, PLOT NO. 40, SECTOR-13, ROHINI, NEW DELHI. PAN NO. AAACM1073E (APPELLANT) (RESPONDENT) APPELLANT BY: MRS. PRAMILA SHARAN, SR. DR RESPONDENT BY: SHRI DHARMENDRA KUMAR, CA O R D E R PER S.V. MEHROTRA, A.M. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF LD. CIT(A) DATED 30/03/2009 FOR A.Y. 2005-06. 2. BRIEF FACTS OF THE CASE ARE THAT RETURN DECLARIN G LOSS OF RS. 42809/- WAS FILED BY THE ASSESSEE ON 29/10/2005. THE ASSESSMEN T WAS COMPLETED U/S 144 OF THE I.T. ACT, 1961 AT AN INCOME OF RS. 1,90, 32,843/-. THIS INCOME WAS DETERMINED BY MAKING AN ADDITION U/S 68 OF RS. 1,89 ,31,694/- AND ALSO THE ASSESSEE WAS NOT ALLOWED TO SET OFF ITS LONG TERM C APITAL GAINS WITH THE BROUGHT FORWARD LOSSES. IN THIS REGARD IN THE STAT EMENT OF FACTS FILED BEFORE ITA NO. 3666/D/2012 2 LD. CIT(A), THE ASSESSEE HAS SUBMITTED THAT IT INCU RRED LONG TERM CAPITAL LOSS OF RS. 88,34,428/- IN THE A.Y. 2003-04 ON SALE OF SHARES, BUT THE AO ADMITTED AND ASSESSED LONG TERM CAPITAL LOSS AT RS. 10,02,793/- AND DID NOT ADMIT ASSESSEES CLAIM FOR THE BALANCE AMOUNT OF RS . 78,31,627/-. THE ASSESSEE HAD FILED APPEAL AGAINST, INTER-ALIA, THE SAID DISALLOWANCE OF ITS CLAIM IN RESPECT OF THE LONG TERM CAPITAL LOSS BEFO RE LD. CIT(A) WHICH HAD NOT BEEN DECIDED. LONG TERM CAPITAL GAIN OF RS. 39,19, 960/- AROSE IN THE ASSESSMENT ORDER UNDER THE APPEAL. THE ASSESSEE CL AIMED ITS SET OFF AGAINST THE AFORESAID LONG TERM CAPITAL LOSS OF RS. 78,31,627/- OF THE A.Y. 2003-04. THE ASSESSEES CLAIM OF SET OFF OF RS. 39 ,19,960/- AGAINST LONG TERM CAPITAL LOSS OF RS. 78,31,627/-, WAS NOT ACCEP TED BY AO. IN THE BACKDROP OF THESE FACTS, LD. CIT(A) IN PARA 4.3 HAS OBSERVED AS UNDER: - I HAVE CONSIDERED THE FINDINGS RECORDED BY THE LD . AO AS PER THE ASSESSMENT ORDER, THE SUBMISSIONS MADE BY THE LD. AR AND THE FACTS OF THE CASE ON RECORD. IT IS SEEN THAT THE APPEAL OF THE APPELLAN T FOR THE AY 2003-04 IS PENDING FOR ADJUDICATION AS THE REMAND REPORT FROM THE AO IS AWAITED. THE AO IS, THEREFORE, DIRECTED TO ALLOW THE CLAIM OF THE APPEL LANT FOR THE ADJUSTMENT OF BROUGHT FORWARD LOSSES IN CAS E ITS CLAIM FOR THE CAPITAL LOSS FOR THE AY 2003-04 I S UPHELD UPON ADJUDICATION OF THE SAID APPEAL. THE GROUND NOS. 1 & 2 ARE ACCORDINGLY DISPOSED OFF WITH THE AFORESAID DIRECTIONS. ITA NO. 3666/D/2012 3 3. FROM THE ABOVE OBSERVATIONS, IT IS EVIDENT THAT LD. CIT(A) HAS RESTORED THE ISSUE TO THE FILE OF AO TO BE DECIDED IN THE LI GHT OF OUTCOME OF FINDINGS FOR A.Y. 2003-04. THUS, LD. CIT(A) HAS, ACCORDINGLY, R ESTORED THE MATTER TO AO WITH SPECIFIC DIRECTIONS. WE DO NOT FIND ANY INFIR MITY IN THESE DIRECTIONS AND, THEREFORE, UPHOLD THE SAME. 4. IN THE RESULT, DEPARTMENTS APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/03/2013 SD/- SD/- (C.M. GARG) JUDICIAL MEMBER (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 15/03/2013 *KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER ASSISTANT REGISTRAR