Suseela Devi, , Guntur V. The Income Tax Officer, Ward-1(2), , Guntur

ITA 51/VIZ/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 0471 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 02-02-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 147; 148; 263; 143(3); 142(1)

Judgement Text

1 आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्ि ू रु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाक ृ ष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. No.51/Viz/2020 (ननधधारण वषा / Assessment Year: 2013-14) Smt. Suseela Devi, R. Agraharam, Guntur. PAN: ADQPD 7800 G Vs. Income Tax Officer, Ward-1(2), Guntur. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Sri SPG Mudaliar, Sr. AR स ु नवधई की तधरीख / Date of Hearing : 12/05/2022 घोषणध की तधरीख/Date of Pronouncement : 10/06/2022 O R D E R PER S. BALAKRISHNAN, Accountant Member : This appeal filed by the assessee against the order of the Ld. CIT(A)-1, Guntur in appeal No. 10199/2018-19, dated 15/11/2019 passed U/s. 143(3) r.w.s 147 and U/s. 250(6) of the Act for the AY 2013-14. 2 2. Brief facts of the case are that the assessee is an individual engaged in the business of cotton and cotton related products filed her return of income for the AY 2013-14 admitting the total income of Rs. 1,58,020/- after setting off of short term loss of Rs. 6,11,380/- from the sale of equity shares. Subsequently, the return was selected for scrutiny and statutory notices U/s. 143(2) and 142(1) were served on the assessee. Based on the information furnished by the assessee, the income was assessed at Rs. 7,82,970/-. Subsequently, the AO reopened the assessment U/s. 147 of the Act and issued notice U/s. 148 of the Act. Considering the submissions made by the assessee in response to the notice U/s. 148, the Ld. AO treated the short term loss claimed by the assessee for Rs. 6,11,380/- as speculation loss and assessed the income as such. Aggrieved by the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the findings of the Ld. AO and dismissed the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 3. The assessee has raised the following grounds of appeal: “1. The Ld. CIT(A) erred both on f acts and in law while disallowing the claim of set off of derivative loss of Rs. 6,11,380/- against derivate prof it treating the same as speculative loss without properly considering the nature of business of the appellant. 3 2. The Ld. CIT(A) erred in conf irming the addition made in the reassessment proceedings u/s. 147 of the Act raising a f urther demand of Rs. 2,75,071/-. 3. The initiation of proceedings U/s. 147 and issuance of notice U/s. 148 are bad in law, invalid and based on change of opinion by the succeeding Assessing Off icer which was conf irmed by the Ld. CIT(A) and theref ore the assessment is liable to be annulled. 4. Nothing contrary to the above grounds, it is brought to the kind notice of the ITAT that if at all the assessment has to be reopened, action u/s. 263 has to be taken and not u/s. 147 of the Act. 5. In view of these and other grounds which may be produced during the hearing of appeal, the appeal may be allowed and justice rendered.” 4. Before us, none appeared on behalf of the assessee and the case shall be adjudicated based on the submissions available on record. Per contra, the Ld. DR relied on the orders of the authorities below. 5. We find from the order of the Ld. Revenue Authorities that the assessee has engaged in the intra-day trading of equity shares. We also note from the order of the Ld. CIT(A) that the assessee failed to provide any evidence to prove that the loss was incurred out of the eligible transaction and it is not a speculative loss. We also note that the claim of the assessee that the loss on account of derivative trading and not a speculative loss is not substantiated by proper evidence either before the Ld. Revenue Authorities or before us. In the failure of the assessee to do so, 4 we find no infirmity in the order of the Ld. CIT(A) and no interference is required. It is ordered accordingly. 6. In the result, appeal of the assessee is dismissed. Pronounced in the open Court on the 10 th June, 2022. Sd/- Sd/- (द ु व्ि ू रु आर.एऱ रेड्डी) (एस बाऱाक ृ ष्णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) न्याययकसदस्य/JUDICIAL MEMBER ऱेखा सदस्य/ACCOUNTANT MEMBER Dated : 10.06.2022 OKK - SPS आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:- 1. ननधधाररती/ The Assessee – Smt. Suseela Devi, Prop. Sanjay Kumar Tejraj, d.No.24-9-114A, R. Agraharam, Guntur, Andhra Pradesh – 522003. 2. रधजस्व/The Revenue – Income Tax Officer, Ward-1(2), Guntur. 3. The Principal Commissioner of Income Tax, Guntur. 4. आयकर आय ु क्त (अऩीऱ)/ The Commissioner of Income Tax(A)-1, Guntur. 5. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशधखधऩटणम/ DR, ITAT, Visakhapatnam 6. गधर्ा फ़धईऱ / Guard file आदेशधन ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam