ITO, New Delhi V. Sh. Uma Shankar Khanna, New Delhi

ITA 3854/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97464 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 08-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 25-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P CHANDREKAR
• Assessee Lawyers: P K BAHL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH H HH H : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI PRASHANT MAHARISHI PRASHANT MAHARISHI PRASHANT MAHARISHI PRASHANT MAHARISHI, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 3854/DEL/2012 3854/DEL/2012 3854/DEL/2012 3854/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2009 2009 2009 2009 - -- - 10 1010 10 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -29(2), 29(2), 29(2), 29(2), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. SHRI SHRI SHRI SHRI UMA SHANKAR KHANNA, UMA SHANKAR KHANNA, UMA SHANKAR KHANNA, UMA SHANKAR KHANNA, PROP. M/S U.S. TRADING CORPORATION, PROP. M/S U.S. TRADING CORPORATION, PROP. M/S U.S. TRADING CORPORATION, PROP. M/S U.S. TRADING CORPORATION, 1082, PAIWALAN, JAMA MASJID, 1082, PAIWALAN, JAMA MASJID, 1082, PAIWALAN, JAMA MASJID, 1082, PAIWALAN, JAMA MASJID, DELHI DELHI DELHI DELHI 110 006. 110 006. 110 006. 110 006. PAN : AAAPK2422L. PAN : AAAPK2422L. PAN : AAAPK2422L. PAN : AAAPK2422L. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J.P. CHANDREKAR, SR.DR. RESPONDENT BY : SHRI P.K. BAHL, CA. DATE OF HEARING : 08.09.2015 08.09.2015 08.09.2015 08.09.2015 DATE OF PRONOUNCEMENT : 05.10.2015 05.10.2015 05.10.2015 05.10.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA, VP , VP , VP , VP : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2009-10 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXV, N EW DELHI DATED 14 TH MAY, 2012. 2. THE GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDE R:- 1. THE LD.CIT(A) HAS GROSSLY ERRED IN DELETING THE ADDITION OF RS.16,10,220/- WITHOUT ANY BASIS AND EV IDENCE. 2. WHETHER THE LD.CIT(A) WAS RIGHT IN TREATING THE CAPITAL LOSS AS SHARE TRADING BUSINESS LOSS DESPITE THE FAC T THAT THE ASSESSEE HAD MADE INVESTMENT IN SHARES. 3. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESS ING OFFICER. HE REFERRED TO RELEVANT PORTION OF THE ASSESSMENT ORDE R IN SUPPORT OF THE ITA-3854/DEL/2012 2 CASE OF THE REVENUE. LEARNED COUNSEL FOR THE ASS ESSEE HAS RELIED ON THE ORDER OF THE LEARNED CIT(A). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE PER USED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). W E FIND THAT THE LEARNED CIT(A) HAS GIVEN A FINDING THAT THE ASSESSE E HAS DONE THE SHARE TRADING TRANSACTIONS THROUGH ITS BROKERS VIZ. , M/S KOTAK SECURITIES AND M/S GLOBLE CAPITAL MARKET IN THE SHARE MARKET I N THE SHARES OF THE REPUTED COMPANIES/STOCKS AND, IN THE PROCESS, HAD S UFFERED HUGE LOSSES AND, THEREFORE, THE ASSESSING OFFICER WAS NO T JUSTIFIED IN DISALLOWING THE CLAIM OF THE ASSESSEE WITHOUT ANY V ALID REASONS. WE FIND THAT THE ASSESSING OFFICER HAS NOT GIVEN ANY C OGENT AND VALID REASON WHILE MAKING THE DISALLOWANCE. IN THE ABSEN CE OF ANY MATERIAL TO JUSTIFY THE ORDER OF THE ASSESSING OFFICER IN MA KING THE DISALLOWANCE OF THE LOSS INCURRED IN SHARE TRADING BY THE ASSESS EE, WE CONFIRM THE ORDER OF LEARNED CIT(A) AND, ACCORDINGLY, THE GROUN DS OF APPEAL OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 5 TH OCTOBER, 2015. SD/- SD/- ( (( ( PRASHANT MAHARISHI PRASHANT MAHARISHI PRASHANT MAHARISHI PRASHANT MAHARISHI ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD- -- -29(2), NEW DELHI. 29(2), NEW DELHI. 29(2), NEW DELHI. 29(2), NEW DELHI. 2. RESPONDENT : SHRI UMA SHANKAR KHANNA, SHRI UMA SHANKAR KHANNA, SHRI UMA SHANKAR KHANNA, SHRI UMA SHANKAR KHANNA, PROP. M/S U.S. TRADING CORPORATION, PROP. M/S U.S. TRADING CORPORATION, PROP. M/S U.S. TRADING CORPORATION, PROP. M/S U.S. TRADING CORPORATION, 1082, PAIWALAN, JAMA MASJID, DELHI 1082, PAIWALAN, JAMA MASJID, DELHI 1082, PAIWALAN, JAMA MASJID, DELHI 1082, PAIWALAN, JAMA MASJID, DELHI 110 006. 110 006. 110 006. 110 006. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR