The ACIT, Cen, Circle-1(1), Ahmedabad V. Nima Specific family Trust, Ahmedabad

ITA 797/AHD/2004

• Counselvise Citation: 79720514 RSA 2004
• Duration Of Justice: 9 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-11-2013
• Assessment Year: 2000-2001
• Appeal Filed On: 11-03-2004
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BATHEJA SRDR
• Assessee Lawyers: S N SOPARKAR
• Keywords: Block assessment

Judgement Text

, , , , A, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, A BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ %& %& %& %& , , , , &' &' &' &' ( & ' ( & ' ( & ' ( & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND TEJ RAM MEENA, ACCOUNTANT MEMBER) ITA NO.797/AHD/2004 [ASSTT.YEAR : 2000-2001] ACIT, CENT.CIR.1(1) AHMEDABAD. /VS. NIMA SPECIFIC FAMILY TRUST C/O. NIRMA HOUSE ASHRAM ROAD, AHMEDABAD. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ( . / &/ REVENUE BY : SHRI O.P. BATHEJA, SR-DR 1% . / &/ ASSESSEE BY : SHRI S.N. SOPARKAR 2 . %3'/ DATE OF HEARING : 12 TH NOVEMBER, 2013. 456 . %3'/ DATE OF PRONOUNCEMENT : 13-12-2013 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2000-2001 IS DIRECT ED AGAINST THE ORDER OF THE CIT(A)-XII, AHMEDABAD. 2. THE GROUND NO.1 OF THE REVENUES APPEAL IS AS UN DER: 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIR ECTING ITA NO.797/AHD/2004 -2 (A) TO ALLOW CLAIM OF SHORT TERM CAPITAL LOSS OF RS.1,75,079/- INCURRED ON ACCOUNT OF SALE OF SECURE D PREMIUM NOTE (SPN) OF NIRMA LTD., AND (B) TO ALLOW CLAIM OF LONG TERM CAPITAL LOSS OF RS.20,91,211/- INCURRED ON ACCOUNT OF SALE OF SHARE S OF GFCL, PATEL AIR TEMP, BAJAJ AUTO FIN LTD., SUKET U FASHIONS LTD., AND SHRI MAGHOR LTD. 3. THE LEARNED COUNSEL OF THE ASSESSEE SUBMITTED TH AT THE ADDITION OF ` 1,75,079/- WAS MADE ON PROTECTIVE BASIS ONLY AND NO ADDITION WAS MADE IN THE BLOCK ASSESSMENT OF THE ASSESSEE ON SUB STANTIVE BASIS. WITH REGARD TO LONG TERM CAPITAL LOSS OF ` 20.91 LAKHS, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE SAME WA S DISALLOWED ON PROTECTIVE BASIS, AND THE ADDITION WAS MADE IN BLOC K ASSESSMENT ON SUBSTANTIVE BASIS. THE ADDITION MADE ON SUBSTANTIV E BASIS HAS BEEN DELETED BY THE ITAT, AHMEDABAD IN ASSESSEES OWN CA SE IN IT(SS)A NO.21/AHD/2005 ON MERITS, AND THEREFORE, THE ADDITI ON MADE ON PROTECTIVE BASIS IN THE HANDS OF THE ASSESSEE HAS T O BE DELETED. THE LEARNED DR COULD NOT CONTROVERT THIS SUBMISSION MAD E BY THE LEARNED COUNSEL FOR THE ASSESSEE. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT SHORT TERM CAP ITAL LOSS OF ` 1,75,079/- WAS DISALLOWED ON PROTECTIVE BASIS, AND NO SUBSTANTIVE ADDITION WAS MADE IN THE BLOCK ASSESSMENT OF THE AS SESSEE. REGARDING OTHER ADDITION OF LONG TERM CAPITAL LOSS OF ` 20.91 LAKHS, WE FIND THAT SAME WAS DISALLOWED ON PROTECTIVE BASIS AND THE MAI N ADDITION WAS MADE IN THE BLOCK ASSESSMENT OF THE ASSESSEE. FURT HER, IN APPEAL AGAINST THE BLOCK ASSESSMENT OF THE ASSESSEE IN IT(SS)A.NO.21/AHD/2005 DATED 28.2.2006, THE ADDITIO N MADE WAS DELETED BY THE TRIBUNAL, AND IT WAS HELD THAT THE A SSESSEE DULY INCORPORATED ALL THESE SHARE TRANSACTIONS IN THE CA PITAL ACCOUNTS AND ITA NO.797/AHD/2004 -3 OFFERED CAPITAL GAIN THEREOF, THIS CANNOT BE HELD T O BE UNDISCLOSED TRANSACTIONS. IN VIEW OF THIS DECISION OF THE CO-OR DINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE AGAINST THE BLOCK A SSESSMENT, WE ARE OF THE VIEW THAT THE ADDITION MADE ON PROTECTIVE BA SIS CANNOT BE SUSTAINED AND NO INTERFERENCE IN THE ORDER OF THE L EARNED CIT(A) IS CALLED FOR, AND ACCORDINGLY, THE GROUND OF THE APPE AL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %& %& %& %& / TEJ RAM MEENA) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD