TCFC FINANCE LTD, MUMBAI V. ASST CIT CIR 3(3), MUMBAI

ITA 6390/MUM/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71939 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 18-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GIRIJA DAYAL
• Keywords: Speculation loss

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E B ENCH, MUMBAI . . , , !'# , $ % BEFORE SHRI I.P. BANSAL, JM AND SHRI N.K. BILLAI YA, AM ./ I.T.A. NO.6390/MUM/2012 ( & & & & / ASSESSMENT YEAR :2009-2010 M/S. TCFC FINANCE LTD., 502, RAHEJA CHAMBERS, NARIMAN POINT, MUMBAI-400 021 THE ACIT, CIRCLE-3(3), MUMBAI ' $ ./ () ./PAN/GIR NO. : AAACR 2710H ( '* /APPELLANT ) .. ( +,'* / RESPONDENT ) '* - / APPELLANT BY : ` SHRI VIJAY MEHTA +,'* . - /RESPONDENT BY : SHRI GIRIJA DAYAL . /0$ / DATE OF HEARING :19.12.2013 12& . /0$ / DATE OF PRONOUNCEMENT : 19.12.2013 3 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-,7 MUMBAI DT.5.7.2012 PERTAINING TO A.Y. 200 9-10. 2. THE ASSESSEE HAS RAISED 3 SUBSTANTIVE GROUNDS OF APPEAL. AT THE VERY OUTSET, WE FIND THAT GROUND NO. 3 IS GENERAL I N NATURE AND NEEDS NO ADJUDICATION. 3. GROUND NO. 1 & 2 READ AS UNDER: ITA NO.6390/M/12 2 1. THE LD. CIT(A) ERRED IN LAW AND FACTS IN UPHOLD ING TREATMENT OF VALUATION LOSS OF RS. 22,83,15,459/- O N SHARES HELD AS STOCK IN TRADE AS SPECULATION LOSS U /S. 73 OF THE ACT. THE REASONS GIVEN BY HIM FOR DOING SO ARE WRONG, CONTRARY TO THE FACTS OF THE CASE AND AGAINST THE PROVISIONS OF LAW. 2. THE LD. CIT(A) ERRED IN LAW AND FACTS IN TREATIN G PROFIT ON SALE/TRADING IN SHARES AS BUSINESS PROFIT CONTRARY TO EXPLANATION TO SEC. 73 OF THE ACT AND FAILED TO SET OFF PROFIT AND LOSS IN THE SAME BUSIN ESS. 4. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE SUBMITTED THAT THE GRIEVANCE RAISED VIDE GROUND NO. 1 IS NOW WELL SETTLED IN FAVOUR OF THE REVENUE BY THE DECISION OF THE HONBLE JURISDIC TIONAL HIGH COURT IN THE CASE OF PRASAD AGENTS (P) LTD.VS ITO 333 ITR 27 5. 5. THE LD. DEPARTMENTAL REPRESENTATIVE ALSO AGREED THAT THIS ISSUE IS IN FAVOUR OF THE REVENUE. 6. WE HAVE CAREFULLY GONE THROUGH THE DECISION OF T HE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF PRASAD AGE NCIES (SUPRA). THE LD. CIT(A) HAS RIGHTLY TREATED THE VALUATION LOSS ON SH ARES HELD AS STOCK-IN- TRADE AS SPECULATION LOSS U/S. 73 OF THE ACT THEREF ORE, NO INTERFERENCE IS CALLED FOR. GROUND NO. 1 IS ACCORDINGLY DISMISSED. 7. SO FAR AS GRIEVANCE RAISED IN GROUND NO. 2 IS CO NCERNED, IT IS THE SAY OF THE LD. COUNSEL THAT THIS ISSUE IS SETTLED I N FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS LOKMAT NEWSPAPERS PVT. LTD. 322 ITR 43. 8. THE LD. DR FAIRLY CONCEDED TO THIS. 9. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE LOWE R AUTHORITIES. THE AO HAS GIVEN THE SUMMARY OF TRADING ACCOUNT OF SHAR E TRADING TRANSACTION ITA NO.6390/M/12 3 ON PAGE-6 OF HIS ORDER. WE FIND THAT THE GROSS LOSS IS AT RS. 14,97,82,556/- WHICH HAS BEEN ARRIVED AS FOLLOWS: LOSS ON VALUATION RS. 22,83,15,459/- LESS PROFIT ON SALE OF SHARES RS. 7,85,32,903/- ------------------------- RS.14,97,82,556/- ============= HOWEVER, WE FIND THAT COMPUTING THE ASSESSED INCO ME AT PAGE-8 OF THE ASSESSMENT ORDER, THE AO HAS ADDED THE LOSS ON VALUATION AT RS. 22,83,15,459/- WHEREAS HE SHOULD HAVE ADDED RS. 14, 97,82,556/- BEING THE NET BALANCE OF LOSS AND PROFIT. AS THIS ISSUE HAS BEEN SETTLED IN FAVOUR OF THE ASSESSEE BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF LOKMAT NEWSPAPER (SUPRA), WE ACCORDINGLY DIRECT THE AO TO COMPUTE THE INCOME BY TAKING THE FIGURE OF RS. 14,97,82,556/- AND RECO MPUTE THE ASSESSED INCOME. GROUND NO. 2 IS ACCORDINGLY ALLOWED. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 19.12.2013 . 3 . 2& $ 4 56 19.12.2013 2 . 7 SD/- SD/- (I.P. BANSAL ) (N. K. BILLAIYA) /JUDICIAL MEMBER $ / ACCOUNTANT MEMBER MUMBAI; 5 DATED 19/12 /2013 . . ./ RJ , SR. PS ITA NO.6390/M/12 4 3 3 3 3 . .. . +/ +/ +/ +/ 8 &/ 8 &/ 8 &/ 8 &/ / COPY OF THE ORDER FORWARDED TO : 1. '* / THE APPELLANT 2. +,'* / THE RESPONDENT. 3. 9 ( ) / THE CIT(A)- 4. 9 / CIT 5. :7 +/ , , / DR, ITAT, MUMBAI 6. 7; < / GUARD FILE. 3 3 3 3 / BY ORDER, , / +/ //TRUE COPY// = == = / > > > > ( ( ( ( (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI