eLegalix - Allahabad High Court Judgment Information System (Judgment/Order in Text Format)
|
?Court No. - 33
Case :- INCOME TAX APPEAL No. - 429 of 2005
Appellant :- Commissioner Of Income Tax-Ii, Kanpur
Respondent :- M/S Prabhat Securities Limited, Kanpu
Counsel for Appellant :- S.C.
Hon'ble Rajes Kumar,J.
Hon'ble Shashi Kant,J.
Heard Sri Dananjay Awasthi, learned Standing Counsel appearing on behalf of the appellant and Sri Ashish Bansal appearing on behalf of the respondent.
The following substantial question of law has been raised in the present appeal :-
"Whether, on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was legally justified in upholding the order of the Ld. Commissioner of Income Tax (Appeals) deleting the addition of Rs. 8,60,231/- made by the Assessing Officer on account of disallowance of assessee's claim of share loss, without properly appreciating the fact that the Assessing Officer made detailed enquiries with regard to share loss to the tune of Rs. 8,60,231/- claimed by the assessee, and has disallowed the same after giving detailed reasonings thereof.?
The assessee is an investment limited company and the main source of income of the assessee is interest. The assessee was also involved in the business of purchase and sale of shares. During the year under consideration, the assessee had shown the interest income of Rs. 10,23,698/- and loss in share at Rs. 8,60,231/-. The return was furnished showing an income of Rs. 46,258/-. The Assessing Authority has disallowed the assessee's claim of share loss to the tune of Rs. 8,60,231/- on the ground that the transaction was suspicious and not genuine.
Against the order of the Assessing Officer, the assessee filed an appeal before CIT (Appeals) which has been partly allowed and deleted the addition of Rs. 8,60,231/-. Being aggrieved with the order of the CIT (Appeals), the revenue filed an appeal before ITAT which has been dismissed.
By the impugned judgment, the Tribunal recorded the finding in para-4 "We have carefully considered the submissions of the ld. Representatives of the parties and have perused the orders of the authorities below. We observe that the A.O. has made his suspicion that the share loss claimed by the assessee is bogus only on the reasons that the assessee has been claiming loss of shares continuously and in the assessment year under consideration, the assessee claimed loss only in respect of two scripts i.e. shares of State Bank of India and shares of Reliance Industries Limited. It appears that the A.O. was also influenced by the fact that the rates at which the assessee purchased the shares on a particular day where the highest and whereas rates at which the assessee sold the shares were the lowest on that particular day, save and except, the A.O. has not been able to find any reasons in doubting the shares transactions entered into by the assessee. On the other hand, the assessee has produced the copies of the bills of purchase and sale of shares, copies of accounts. Further, it is also not in dispute that the said share brokers through whom the assessee entered into shares transactions were the registered stock brokers. We also observe that the A.O. had also called for the records from the share brokers and no discrepancy had been found by him. Since the assessee has been able to produce all the relevant documentary evidence in respect of the shares transactions entered into, we are of the considered view that the observation of the A.O. that the share loss claimed by the assessee is bogus and is not based on any cogent material and as such the order of the A.O. cannot be sustained. Accordingly, we uphold the order of CIT (A) and reject the ground of appeal taken by the Department."
We have perused the various orders. We are of the view that the finding recorded by the Tribunal are the finding of fact based on the material on record and no substantial question of law arises from the order of the Tribunal.
The appeal fails and is accordingly, dismissed.
Order Date :- 1.5.2014
Monika
Visit http://elegalix.allahabadhighcourt.in/elegalix/StartWebSearch.do for more Judgments/Orders delivered at Allahabad High Court and Its Bench at Lucknow. Disclaimer
Regards
Prarthana Jalan
__._,_.___
No comments:
Post a Comment