ITO 16(1)(3), MUMBAI V. H.R. KHATAU, MUMBAI

ITA 4345/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3917 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 22-02-2016
• Assessment Year: 1995-1996
• Appeal Filed On: 19-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA VIJAY
• Keywords: Cost of acquisition; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES H, MUMBAI BEFORE SHRI B.R.BASKARAN (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 4345 /MUM/2014 ASSESSMENT YEAR: 1995-96 THE ITO - 16(1) (3 ) , MATRU MANDIR, TARDEO ROAD, MUMBAI- 400007. VS. S HRI. H.R.K HATAU . 15A, JAMNADAS MEHTA MARG, MALBAR HILL, MUMBAI-400007 PAN- AACPK9328D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. CHANDRA VIJAY RESPONDENT BY : SHRI. RAJESH P. SHAH DATE OF HEARING: 22/02/2016 DATE OF PRONOUNCEMENT: 22/02/2016 O R D E R PER RAM LAL NEGI, JM THE AFORESAID APPEAL HAS BEEN FILED BY THE REV ENUE AGAINST IMPUGNED ORDER DATED 12/03/2014 PASSED BY THE CIT( APPEALS)-5, MUMBAI IN RESPECT OF THE ORDER OF ASSESSMENT PASSED U/S 143(3) FOR THE ASSESSMENT YEAR 1995-96, ON THE FOLLOWING GROUN DS:- 1. WHETHER ON THE FACTS AND CIRCUMSTANCES AND IN LA W, THE LD. CIT(A) WAS JUSTIFIED IN ALLOWING THE SET OFF OF SAL ES OF SHARES AS LONG TERM CAPITAL LOSS AGAINST THE LONG TERM CAPITA L GAIN AT THE RATE OF RS. 1 PER SHARE (SALE PRICE) AS AGAINST THE PURCHASE COST OF RS.18.50 PER SHARE BY THE ASSESSEE BY USING COLOURABLE DEVICE. THE SAID TRANSACTION WAS MADE WITHIN THE FA MILY FOR A WORTHLESS PRICE. 2 ITA NO. 4345 /MUM/2014 ASSESSMENT YEAR: 1995-96 2. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND THAT MAY BE NECESSARY. 2. AT THE OUTSET, IT IS NOTICED THAT, THE QUANTUM IN DISPUTE IS ONLY RS. 32,37,500/- (LONG TERM CAPITAL GAIN) AND THE TAX EF FECT ON THIS AMOUNT IS BELOW THE SPECIFIED MONETARY LIMIT OF RS. 10 LAK HS. AS PER THE LATEST CBDT CIRCULAR NO. 21 OF 2015, DATED 10 TH DECEMBER, 2015, NEW GUIDELINES OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT HAS BEEN ISSUED, WHEREBY THE TAX EFFECT FOR FILING OF A PPEAL BEFORE THE ITAT HAS BEEN PRESCRIBED AT RS. 10 LAKHS. IN THE SAID CI RCULAR, IT HAS BEEN SPECIFICALLY CLARIFIED THAT THE SAID INSTRUCTION WI LL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND IS DISMISSED IN LIMINE . ORDER PRONOUNCED IN THE OPEN COURT ON 22 TH FEBRUARY, 2016 SD/- SD/ - (B.R.BASKARAN) (R AM LAL NEGI) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 22/02/2016 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A)- 4. / CIT 5. !' , $ !'% , / DR, ITAT, MUMBAI 6. &' ( / GUARD FILE. / BY ORDER, ) //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI PRAMILA