NATESAN ASHWIN,COIMBATORE V. ITO, CORP. WARD-1, COIMBATORE

ITA 2523/CHNY/2024

AI Insights

The case involves an appeal by Natesan Ashwin against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment year 2015-16. The primary issue was the confirmation of additions made by the Assessing Officer, particularly the disallowance of a claimed loss of \\u20b939,55,993 from transactions with M/s. India Infoline Limited. The Assessing Officer had accepted other transactions but ignored the loss claim from M/s. India Infoline. The Tribunal found that both the Assessing Officer and the CIT(A) had overlooked crucial details provided by the assessee regarding these transactions. Consequently, the matter was remanded for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107460 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C. MURUGESAN
• Assessee Lawyers: T.VASUDEVAN

Judgement Text

"आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.2523/Chny/2024 िनधाŊरण वषŊ/Assessment Year: 2015-16 Natesan Ashwin, 25, Bharathi park, 7th Cross Street, Saibaba Colony, Coimbatore 641 011. [PAN:AVVPA6270G] Vs. The Income Tax Officer, Corporate Ward 1, Coimbatore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri T. Vasudevan, Advocate ŮȑथŎ की ओर से/Respondent by : Shri C. Murugesan, Addl. CIT सुनवाई की तारीख/ Date of hearing : 04.02.2025 घोषणा की तारीख /Date of Pronouncement : 07.02.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 31.07.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2015-16. 2. The assessee raised 6 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is I.T.A. No.2523/Chny/24 2 justified in confirming the additions made by the Assessing Officer in the facts and circumstances of the case. 3. At the outset, we note that the assessee is an individual and filed his return of income claiming refund. The Assessing Officer observed that the assessee’s case was selected for scrutiny and asked the assessee to furnish profit and loss account statement from the share brokers relating to transactions in respect of M/s. Single Window Securities Limited, M/s. Sugal & Damani Share Brokers Limited & M/s. India Infoline Limited. According to the ld. AR, the Assessing Officer accepted M/s. Single Window Securities Limited & M/s. Sugal & Damani Share Brokers Limited. The ld. AR Shri T. Vasudevan, Advocate argued that the Assessing Officer completely ignored the claim of loss from M/s. India Infoline Limited. It is noted that the Assessing Officer observed that there is no evidence furnished relating to the claim of loss and disallowed the claim of loss at ₹.39,55,993/-, but, made addition of ₹.28,527/-. We note that the assessee argued before the ld. CIT(A) that the Assessing Officer erred in not considering his response dated 22.12.2017 vide acknowledgement No. 22121710017034 and the ld. AR argued that the ld. CIT(A) also without considering the same, confirmed the order of the Assessing Officer. I.T.A. No.2523/Chny/24 3 4. The ld. AR referred to paper book containing 7 pages and drew our attention to page 1 to 5. He submits that the statement of M/s. India Infoline Limited referred to Future and Options, where it clearly shows the assessee suffered loss to an extent of ₹.34,32,380/-. Further, he referred to p;age 6 & 7 and argued that the statement refers to trading of shares and profit thereof. He submits that the assessee furnished every details in respect of Future & Options and trading of shares to the Assessing Officer vide e-proceeding response dated 22.12.2017, but, however, the Assessing Officer made addition relating to profit in respect of shares trading and completely ignoring claim of loss in respect of Future & Option. He prayed to remand the matter to the file of the Assessing Officer as both the authorities failed to consider the details of the claim. 5. The ld. DR Shri C. Murugesan, Addl. CIT did not dispute the same. 6. Having considered the submissions of the ld. AR and the ld. DR, we note that at page 1 to 5 of the paper book shows realized profit and loss in Future and Options transactions. The said statement relevant to the period of 01.04.2014 to 31.03.2015, wherein, other details of scrip name, quantity, average rate, etc. were referred. On perusal of page 4, we note that the assessee suffered loss of ₹.34,32,380/-, whereas, we find the Assessing Officer and the ld. CIT(A) completely ignored the same as I.T.A. No.2523/Chny/24 4 rightly pointed out by the ld. AR that the Assessing Officer made addition only on account of gain by ignoring loss as reflecting in page 4 of the paper book. We also find force in the argument of the ld. AR that the transactions relating to Future & Options and share trading are different and therefore, separately be taking into consideration. Therefore, since the response dated 22.12.2017 was not considered by the Assessing Officer, we deem it proper to remand the matter to the file of the Assessing Officer for fresh consideration to decide the issue taking into account e-response dated 22.12.2017 and pass order in accordance with law. The assessee is at liberty to place the same before the Assessing Officer. Thus, grounds Nos. 1 to 6 are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 07th February, 2025 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 07.02.2025 Vm/- I.T.A. No.2523/Chny/24 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "