Shri Dineshbhai Chimanlal Patel, Nadiad V. The Income Tax Officer, Ward-2, Nadiad

ITA 956/AHD/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5475 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 19-04-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T C MEENA
• Assessee Lawyers: BHAVESH SHAH
• Keywords: Transactions in derivatives
• Section: 201; 251

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, SMC BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND MS MADHUMITA ROY, JUDICIAL MEMBER ./ ITA NO. 956 /AHD/2017 & / ASSTT. YEAR: 2011 - 201 2 SHRI DINESHBHAI CHIMANBHAI PATEL, C/4 , AKSHARDHAM SOCIETY, L.B. AVENUE , COLLEGE ROAD, DIST. KHEDA , NADIAD - 387001. PA N: ADBPP1778N VS . INCOME TAX OFFICER, WARD - 2 , NADIAD (APPLICANT) (RESPONENT) ASSESSEE BY : SHRI BHAVESH SHAH, A.R REVENUE BY : SHRI T.C MEENA , SR. D . R / DATE OF HEARING : 26 / 10 / 201 8 / DATE OF PRONOUNCEMENT: 01 / 11 /201 8 / O R D E R PER MS MADHUMITA ROY, JUDICIAL MEMBER : THE INSTANT APPEAL HAS BEEN FILED BY THE ASSESSEE BEFORE US AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) - 2 , VADODARA DATED 10.1.2017 , ARISING OUT OF ORDER OF THE ASSESSING OFF ICER DATED 23.9.2015 PASSED UNDER SECTION 271B OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2011 - 12. 2. AT THE TIME OF HEARING OF THE APPEAL THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE SAID ORDER HAS BEEN REVIEWED U/S.154 OF THE A CT, ITA NO. 956 /AHD/2017 A.Y. 2011 - 2012 2 R.W.S . 251 OF THE ACT, BY THE LEARNED COMMISSIONER OF INCOME TAX, WHEREBY AND WHERE UNDER , THE PENALTY HAS BEEN REDUCED FROM RS. 63,02,040/ - TO RS.31,510/ - WITH THE FOLLOWING OBSERVATION: 3. AS STATED HEREINABOVE, IN THE CASE OF THE ASSESSEE FOR THE AUDIT LIMIT UNDER SECTION 44AB OF THE ACT, THE NET DIFFERENCES OF THE PURCHASE AND SALE OF TRANSACTION OF LOSS RS.60,29,3597 - OUT OF TOTAL TRANSACTION (TOTAL TURNOVER) OF RS.4.61 CRORES WHICH WAS EXCEEDED THE PRESCRIBED LIMIT OF RS.60 LACKS FOR THE YEAR UNDER CONSIDERATION. THE TRADING OF DERIVATIVE TRANSACTION WAS TO THE TUNE OF RS. 4.61 CRORES AND TOTAL OF DIFFERENCES OF FAVORABLE AND UNFAVORABLE ITEMS WAS LOSS OF RS.60,29,359/ - WHICH WAS SHOWN IN THE RETURN OF INCOME AND ALSO MENTIONED I N HIS ALL SUBMISSION FURNISHED DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THE ASSESSE HAS ALSO FURNISHED LEDGER ACCOUNT OF SHARE TRADING (F & O) FOR THE PERIOD 01704/2010 TO 31/ 03/2011. THEREFORE, IT IS CLEARLY EXCEEDED THE PRESCRIBED LIMIT. FURTHER, A BOVE BUSINESS OF SALE OF DERIVATIVES TRANSACTION DETERMINED AS PER THE GUIDANCE NOTE NO.5.12(B)(I) ON TAX AUDIT U/S44AB OF THE ACT READ AS UNDER: (B) DERIVATIVES, FUTURES AND OPTION : SUCH TRANSACTION ARE COMPLETED WITHOUT THE DELIVERY.............. ........................ THE TURNOVER IN SUCH TYPES OF TRANSACTION IS TO BE DETERMINED AS FOLLOWS: (I) THE TOTAL OF FAVOURABLE AND UNFAVOURABLE DIFFERENCES SHALL BE TAKEN AS TURNOVER. (II) . . (II) . . TURNOVER... 3. IN VIEW OF THE MATTER , THE LD.AR FOR THE ASSESSEE , DOES NOT WANT TO PROCEED WITH THE MATTER AND THUS, WITHDRAWN . 4 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN . ORDER PRONOUNCED IN THE COURT ON 01/11 /2018 AT AHMEDABAD. - SD - - SD - ( WASE EM AHMED ) ACCOUTANT MEMBER ( MS MADHUMITA ROY ) JUDICIAL MEMBER TRUE COPY AHMEDABAD; DATED 01 / 11 /201 8 MANISH ITA NO. 956 /AHD/2017 A.Y. 2011 - 2012 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , / DR, ITAT, 6. / GUARD FILE . / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD