Ashish Dugar, Hyderabad V. Asst. Commissioner of Income Tax, Circle-4(1), Hyderabad

ITA 390/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9831 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 22-06-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 13-07-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT MAJUMDAR
• Keywords: Business income; Speculation loss; Futures and options
• Section: 143(3); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 390 /HYD/20 20 ( ASSESSMENT YEAR : 20 16 - 17 ) SHRI ASHISH DUGAR, HY DERABAD - 500 029 . .APPELLANT. PAN AAKPD 7703K VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE 4(1), HYDERABAD. ..RESPONDENT . APPELLANT BY : NONE. RESPONDENT BY : SHRI ROHIT MAJUMDAR (D.R.) DATE OF HEARING : 22.06 . 2021. DATE OF PRONOUNCEMENT : 07 .0 7 .2021. O R D E R PER S MT. P. MADHAVI DEVI , J.M. : THIS IS ASSESSEE'S APPEAL FOR ASSESSMENT YEAR 20 16 - 17 AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , HYDERABAD DT. 27.01.2020 . 2 ITA NO. 390/HYD/2020 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE , AN INDIVIDUAL , FILED HIS RETURN OF INCOME ON 16.10.2016 ADMITTING TOTAL INCOME OF RS.53,57,910. THE ASSESS MENT WAS COMPLETED BY THE ASSESSING OFFICER ACCEPTING THE RETURNED INCOME OF THE ASSESSEE. THEREAFTER , THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A )STATING THAT DURING THE ASSESSMENT PROCEEDINGS U/S. 143(3) OF THE ACT, THE ASSESSEE HAS FILED A LETTER WIT H THE ASSESSING OFFICER REQUESTING FOR SET OFF OF THE LOSS ON ACCOUNT OF TRADING IN FUTURES AND OPTIONS OF RS.22,01,171 AS SPECULATIVE LOSS AND NOT CLAIMED AS SET OFF AGAINST BUSINESS INCOME. THUS A CCORDING TO HIM , THE ASSESSING OFFICER SHOULD HAVE CONSIDERED THE SAME AND ALLOWED THE CLAIM OF THE ASSESSEE. HOWEVER SINCE NONE APPEARED BEFORE THE CIT(A) ON BEHALF OF THE ASSESSEE, HE CONFIRMED THE ASSESSMENT ORDER BY DISMISSING THE ASSESSEE'S APPEAL. THE ASSESSEE IS IN SECOND APPEAL BEFORE US RAISING THE FOLLOWING G ROUNDS : 1. THE LEARNED C OMMISSIONER ( A PPEALS) HAS ERRED IN DISMISSING THE APPEAL ON THE GROUNDS OF NON APPEARANCE AND IN SPITE OF NOTICES SENT ONLINE. THE COMMISSIONER ( A PPEALS) HAS ERRED IN COMPLETELY IGNORING THE SUBMISSIONS 3 ITA NO. 390/HYD/2020 MADE BY THE ASSESSEE ON LINE ON THE INCOME TAX PORTAL ON 3RD DECEMBER. 2. THE LEARNED C OMMISSIONER ( A PPEALS) HAS ERRED IN NOTING THAT NO EVIDENCE WAS SUBMITTED IN SUPPORT OF THE LOSSES OF RS.22,OL,17/ - ON ACCOUNT OF FU TURES AND OPTIONS WERE PLACED BEFORE HIM. THE LEARNED C OMMISSIONER( A PPEALS) HAVE COMPLETELY IGNORED THAT ALL THE EVIDENCE RELATING TO THE LOSSES ON ACCOUNT OF FUTURES AND OPTIONS WERE PLACED BEFORE. THE ASSESSING OFFICER DURING ASSESSMENT PROCEEDINGS. THE C OMMISSIONER ( A PPEALS) HAS NOT CALLED FOR ANY EVIDENCE IN ANY OF THE NOTICES SERVED TO THE ASSESSEE NOR HAS HE REVIEWED THE ASSESSMENT FILE RESULTING IN THIS ERRONEOUS CONCLUSION. 3. THE COMMISSIONER (APPEALS) FAILED TO APPRECIATE THAT THE NON APPEARANCE OF THE AS S ESSEE WAS ON ACCOUNT OF THE CONFUSION RELATING TO WHETHER THE SUBMISSIONS SHOULD BE MADE ONLINE OR IN PERSON RESULTING IN THE ASSESSEE FILING THE DOCUMENTS ONLINE AND WAIT ING FOR INSTRUCTIONS FOR FURTHER INSTRUCTIONS ONLINE ONLY . 3. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING ON 22.6.2021. HOWEVER, SINCE THE ORDER OF THE CIT(A) IS EXPARTE OF THE ASSESSEE AND NOT ON MERITS , W E PROVIDE ANOTHER OPPOR TUNITY TO REPRESENT HIS CASE BEFORE THE CIT(A) AND REMAND THE MATTER TO THE FILE OF CIT(A) FOR DE NOVO CONSIDERATION OF THE APPEAL IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A FAIR OPPORTUNITY OF HEARING. THE ASSESSEE IS DIRECTED NOT SEEK 4 ITA NO. 390/HYD/2020 UNNECESSAR Y ADJOURNMENT WITHOUT VALID REASON AND CO - OPERATE IN EARLY DISPOSAL OF THE APPEAL. 4. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED , FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 7TH JULY , 2021. SD/ - SD/ - (A. MOHAN ALANKAMONY) (SMT. P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 07. 07. 2021. * REDDY GP COPY TO : 1. SHRI ASHISH DUGAR, 3 - 6 - 148/2, HIMAYATHNAGAR, HYDERABD - 500 029 2. ACIT, CIRCLE 4(1), HYDERABAD. 3. PR. C I T - 1, HYDERABAD. 4. CIT(APPEALS) - 1, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.