ITO,Ward-1(2), Kolkata, Kolkata V. M/s Zobal Sales Pvt. Ltd., Kolkata

ITA 723/KOL/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8119 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2012
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 03-05-2012
• Court: TRIBUNAL
• Department Lawyers: A K DEY
• Keywords: Speculation loss

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , ,, , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO . 723/KOL/2012 %& '(/ ASSESSMENT YEAR : 2001-02 (*+ / APPELLANT ) I.T.O., WARD-1(2), KOLKATA (PAN:AADFR 4261 K) (,-*+/ RESPONDENT ) M/S.ZOBAL SALES PVT. LTD., KOLKATA. *+ . / '/ FOR THE APPELLANT: SHRI A.K.DEY, JCIT (SR.DR) ,-*+ . / '/ FOR THE RESPONDENT: NONE 0%1 . !# /DATE OF HEARING : 09.10.2012. 2' . !# /DATE OF PRONOUNCEMENT : 09.10.2012. '3 / ORDER . .. . ! ! ! !. .. . , '# PER SHRI C.D.RAO, AM THE ABOVE APPEAL IS FILED BY REVENUE AGAINST ORDER DATED 15.02.2012 OF THE LD. CIT-(A)-CENTRAL-III, KOLKATA PERTAINING TO A.YR. 2 001-02. 2. IN THIS APPEAL THE ONLY ISSUE RAISED BY THE REV ENUE IS RELATING TO THE DELETION OF RS.4,69,422/- ON ACCOUNT OF PENALTY LEVIED U/S 271( 1)(C) OF THE I.T.ACT. 3. NONE APPEARED ON BEHALF OF ASSESSEE. HOWEVER, S INCE IT IS A DEPARTMENTAL APPEAL, WE CONSIDER IT FIT TO DISPOSE OF THE SAME A FTER HEARING THE LD. DR. 4. AFTER HEARING THE LD. DR WHO SUPPORTED THE ORDE RS OF AO, IT IS OBSERVED THAT THE AO IS OF THE VIEW THAT THE ASSESSEE HAS FURNISH ED INACCURATE PARTICULARS OF INCOME 2 TO LESSEN THE TAX LIABILITY BY CLAIMING SHARE SPECU LATION LOSS AS BUSINESS LOSS WHILE COMPUTING THE TOTAL INCOME. HOWEVER, THE LD. CIT(A) HAS DELETED THE PENALTY BY OBSERVING AS UNDER :- IN THE INSTANT CASE THERE IS NO DENYING THAT THE A SSESSEE HAD SUFFERED LOSS IN ITS SHARE DEALING ACTIVITY DURING THE YEAR UNDER APPEAL. THE QUANTUM OF SUCH LOSS IS ALSO NOT DISPUTED. THERE IS NO DISPUTE REGARDING THE GENUINE NESS OF THE SHARE TRADING TRANSACTIONS ON WHICH THE ASSESSEE HAD SUFFERED LOSS. THE RELEVA NT DETAILS REGARDING THE LOSS IN SHARE TRADING WERE DULY DISCLOSED BY THE ASSESSEE IN ITS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR. THE ONLY THING IS THAT THE SHARE T RADING LOSS WAS DEEMED TO BE SPECULATION LOSS BY VIRTUE OF APPLICATION OF EXPLAN ATION TO SECTION 73. THUS, THERE WAS NO CONCEALMENT OR FURNISHING OF INACCURATE PARTICUL ARS BY THE ASSESSEE IN RESPECT OF THE LOSS IN SHARE TRADING ACTIVITY IS CONCERNED. THEREF ORE, CONSIDERING THE FACTS OF THE CASE, IN MY VIEW, NO PENALTY U!S.271(1)(C) IS ELIGIBLE IN THE PRESENT CASE SINCE THE ASSESSEE HAD FURNISHED REQUISITE INFORMATION BEFORE THE A.O. THE TRIBUNAL IN THE CASE OF S.R.J. SECURITIES LTD. VS- ITO (SUPRA) HAS HELD THAT PEN ALTY ULS.271(1)(C) IS NOT LEVIABLE IN A CASE WHERE THE ASSESSEE HAD FURNISHED REQUISITE INF ORMATION REGARDING SHARE TRADING LOSS WHICH WAS TREATED AS SPECULATION LOSS BY THE A.O. O NIY ON APPLICATION OF EXPLANATION TO SECTION 73. 5. THOUGH THE LD. DR RELIED ON THE ORDERS OF AO COU LD NOT CONTRADICT THE FINDINGS OF LD. CIT(A). WE ARE OF THE VIEW THAT THE ASSESSEE HAD FURNISHED REQUISITE INFORMATION BEFORE AO AND THERE IS NO CONCEALMENT OR FURNISHING OF INACCURATE PARTICULARS BY ASSESSEE IN RESPECT OF LOSS OF THE SHARE TRADING AC TIVITY IS CONCERNED. HE FURTHER RELIED ON THE ORDERS OF THE TRIBUNAL IN THE CASE OF SRJ SE CURITIES LTD. VS ITO (2011) 8 ITR (TRIB) 41 (DEL). THEREFORE, WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A) TO BE INTERFERED WITH. WE CONFIRM THE SAME AND DISMISS TH E APPEAL OF REVENUE. 6. IN THE RESULT THE APPEAL OF REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 09.10.2012. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , , , , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 09.10.2012 R.G.(P.S.) 3 '3 . ,4 5'4'6- COPY OF THE ORDER FORWARDED TO: 1. M/S.ZOBAL SALES PVT. LTD., 3, MULLICK STREET, KOLKA TA-700007. 2 I.T.O., WARD-1(2), KOLKATA. 3. THE C.I.T. 4. CIT(A)-I, KOLKATA. 5. THE CIT(DR), KOLKATA BENCHES, KOLKATA -4 ,/ TRUE COPY, '3%0/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES 4