MR. SHRENIK JASWANTLAL SHAH ,MUMBAI V. DCIT CIRCLE 19(3), MUMBAI

ITA 977/MUM/2025

AI Insights

The case involves Mr. Shrenik Jaswantlal Shah, who appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2014-15. The primary issue was the incorrect demand raised by the AO despite the set off of short term capital gain against the brought forward short term capital loss being accepted in the earlier assessments. The Tribunal noted discrepancies between the tax computation sheet and the assessment order, leading to the decision to remand the case back to the AO for correct recalculation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705425 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRABHADRA S. MAHAJAN
• Assessee Lawyers: H S RAHEJA
• Keywords: Set aside
• Section: 147; 143(3); 234B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH MUMBAI BEFORE HON’BLE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & HON’BLE SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No. 977/Mum/2025 (Assessment Year: 2014-15) Mr. Shrenik Jaswantlal Shah 51, Sadguru Bldg, 5th Floor, Behind Dharam Palace Sukhsagar, Mumbai Vs. DCIT, Circle – 19(3) Piramal Chambers, Lalbaug, Mumbai – 400012. PAN/GIR No. AKJPS2354L (Applicant) (Respondent) Assessee by Shri HS Raheja Revenue by Mr. Virabhadra S. Mahajan, Sr.DR Date of Hearing 30.06.2025 Date of Pronouncement 03.07.2025 आदेश / ORDER PER SANDEEP GOSAIN, JM: The present appeal has been filed by the assessee challenging the impugned order dt. 02.04.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre, Delhi (NFAC) for the assessment year 2014-15. 2. Ground No. 1, raised by the assessee relates to challenging the order Ld. CIT(A) in passing the order without taking into consideration the actual facts of the present case. In this regard, we have heard the counsels 2 ITA No. 977/Mum/2025 Mr. Shrenik Jaswantlal Shah, Mumbai for both the parties, perused the material placed on record and the orders passed by the revenue authorities. 3. From the facts of the present case, we noticed that the assessee had declared short term capital gain of Rs. 9,18,303/- which according to him was set off against the brought forward short term capital loss of Rs. 15,74,129/- relating to A.Y 2008-09, as the unabsorbed short term capital loss for the A.Y 2008-09 and subsequently assessment year was carried forward as per table below: Unabsorbed Short term capital A.Y B/fd Set off To be c/f 2008-09 15,74,129 9,18,303 6,55,826 2011-12 7,924 0 7,924 2012-13 5,74,313 0 5,74,313 2013-14 4,28,211 0 4,28,211 4. The return of the assessee was taken up for scrutiny and order u/s 143(3) of the Act was passed on 31-12-2016 and the returned income was accepted along with the claim of the set off of the current years short term capital gain with the brought forward short term capital loss. 5. As per the assessment order passed u/s 143(3) thereby determining the income of the assessee at Rs. 97,08,150/- and the final remarks were as under;- \" Assessed u/s. 143(3) of the Income-tax Act, 1961. Give credit for taxes paid as per proof on record. Charge Interest u/ 3 ITA No. 977/Mum/2025 Mr. Shrenik Jaswantlal Shah, Mumbai s.234A, 234B and 234C as applicable. ITNS 150 forms part of this order. Issue Demand/ Refund order, as applicable.\" 6. However, the assessment of the assessee was then reopened u/s 147 of the Act on 31/7/2022 to examine the claim of the set off of long term capital gain on sale of a commercial property with the purchase of a residential property u/s 54F. This claim was accepted in the order passed u/s 147 r.w.s. 144B dated 17/02/2023. Hence the returned income was again accepted at Rs. 9,18,303/-. 7. But still a demand notice was issued raising a demand of Rs. 8,62,438/- which as per the tax computation sheet shows to be a demand on the short term capital gain of Rs. 9,18,303/- along with interest. 8. Accordingly assessee submitted that the tax computation sheet is not in sync with the assessment order and the demand of Rs.8,62,438/- has been wrongly raised though the short term capital loss has been set off as per the assessment order. 9. Since, this demand of Rs. 8,62,438/- is only in the tax calculation sheet and is not in accordance with the final order passed by the AO u/s 143(3) of the Act. 4 ITA No. 977/Mum/2025 Mr. Shrenik Jaswantlal Shah, Mumbai 10. Therefore, after having gone through the previous return forms, we noticed that in the year under consideration there is no justification in not setting off the short term capital gain of the current assessment year against the brought forward short term capital loss of the previous years. 11. Therefore taking into consideration the entire facts and circumstances of the present case, we are of the view that the order passed by the Ld. CIT(A) is set aside and is restored back to the file of AO with a direction to recalculate the same in accordance with the orders passed u/s 143(3) of the Act. Needless to mention that before passing any order opportunity of hearing be also provided to the assessee. The assessee shall not seek unnecessary adjournments. 12. Before parting, we make it clear that our decision to restore the matter back to the file of the AO shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the AO independently in accordance with law. Since, we have restored the matter back to the file of AO therefore other grounds are not adjudicated as the same are now academic. 5 ITA No. 977/Mum/2025 Mr. Shrenik Jaswantlal Shah, Mumbai 13. In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced in the open court on 03.07.2025. Sd/- Sd/- (PRABHASH SHANKAR) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 03/07/2025 KRK, Sr. PS आदेश की \bितिलिप अ\u000eेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u000eथ / The Respondent. 3. संबंिधत आयकर आयु\u0019 / The CIT(A) 4. आयकर आयु\u0019(अपील) / Concerned CIT 5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, मु\u0003बई / DR, ITAT, Mumbai 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, स\u000eािपत ित //True Copy// 1. उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु\u0003बई मु\u0003बई मु\u0003बई मु\u0003बई / ITAT, Mumbai "