DCIT, CC- 7(1), MUMBAI V. CLASSIC SHARES AND STOCK BROKING SERVICES LTD., MUMBAI

ITA 4679/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5965 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2002-2003
• Appeal Filed On: 01-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P DANIAL
• Assessee Lawyers: AAKASH KUMAR
• Keywords: Speculation loss; Tax effect
• Section: 73

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C , MUMBAI BEFORE SHRI C.N. PRASAD , HONBLE JUDICIAL MEMBER AND SHRI M. BALAGANESH , HONBLE ACCOUNTANT MEMBER ITA NO . 4679 /MUM/201 8 ( A.Y: 2002 - 03 ) DCIT, CC 7(1) R.NO. 653, 6 TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400 020 V. M/S. CLASSIC SHARES & STOCK BROKING SERVICES 121, RADHA BHAVAN NAGINDAS MASTER ROAD, FORT MUMBAI 400 023 PAN: AAACM3635Q (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AAKASH KUMAR DEPARTMENT BY : DR. P. DANIAL DATE OF HEARING : 06 .02.2020 DATE OF PRONOUNCEMENT : 06 .0 2 .2020 O R D E R PER C.N. PRASAD (JM) THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 49 , MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] IN APPEAL NO. CIT(A) - 4 9 / IT - 424/2011 - 12 DATED 13.01.2017 FOR THE ASSESSMENT YEAR 2002 - 03 . 2. REVENUE HAS RAISED THE FOLLOWING GROUND S IN ITS APPEAL : - 1. 'WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, LD CIT(A) WAS JUSTIFIED IN ALLOWING THE SPECULATION LOSS OF RS. 1,47,77,850 / - AS PER PROVISIONS OF SECTION 73 OF THE INCOME TAX ACT, WHICH ARE NOT GENUINE IN NATURE AND THE SAME SHARES ARE MENTIONED BY THE JPC IN THEIR REPORT?' 2 ITA NO . 4679 /MUM/201 8 ( A.Y: 2002 - 03 ) M /S. CLASSIC SHARES & STOCK BROKING SERVICES 2. 'WHETHER ON THE FACTS AND I N THE CIRCUMSTANCES OF THE CASE AND IN LAW, LD CIT(A) ERRED IN DELETING THE DISALLOWANCE OF LOSSES OF RS. 1,47,77,8 5 0 / - WITHOUT APPRECIATING THE FACT THAT PERIOD UNDER CONSIDERATION IN AN EXTENSION OF THE SCAM PERIOD AND THE TRANSACTIONS WERE CARRIED OUT OF F MARKET? 3. AT THE TIME OF HEARING, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT TAX EFFECT ON THE ISSUE IN THE PRESENT APPEAL IS BELOW 5 0 LAC S AND IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 IN F.NO.279/MISC.142/2007 - ITJ (PT) , THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. DEPARTMENTAL REPRESENTATIVE ALSO AGREED WITH THE ABOVE SUBMISSION OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE . 5. WE HAVE HEARD THE SUBMISSIONS AND PERUSED THE GROUNDS OF APP EAL IN THIS APPEAL. WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN .50 LAKHS AND T HEREFORE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. HENCE THIS APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 06 TH FEBRUARY , 2020 S D/ - S D/ - ( M. BALAGANESH ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 06 / 0 2 / 2020 GIRIDHAR, SR.PS 3 ITA NO . 4679 /MUM/201 8 ( A.Y: 2002 - 03 ) M /S. CLASSIC SHARES & STOCK BROKING SERVICES COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM