Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 332 - ITAT MUMBAIDisallowance of Long Term Capital Loss – Held that:- The purchase and sale of the shares were done through banking channels - there is no evidence in passion of the Assessing Officer that the assessee received higher amount of consideration than what is disclosed by the assessee -the Revenue cannot disturb the computation of capital loss filed before the Assessing Officer – Following KP Varghese Versus Income-Tax Officer, Ernakulam, And Another [1981 (9) TMI 1 - SUPREME Court] - the onus is on the Revenue - Assessing Officer accepted the sale price of the same shares where computation of short term capital gains was furnished - He has not given any reasons why the assessee’s stand was accepted in case of short term capital gains while he was rejecting the same for long term capital loss - such dichotomous and divergent approach by the AO is unsustainable in law as it raises issues relating to principle of consistency - Only sale price is accepted and allowing of indexation benefits is consequential issue and the assessee is rightly entitled to such benefits legally – Thus, the loss emanated is legally allowed. CIT(A) have not dealt with the issues in details after obtaining replies of the assessee and after considering the arguments of the assessee – the reasoning is just adequate enough to create a suspicion but inadequate to sustain the additions as done by the CIT(A) - On such inadequate reasons, the transactions of sale of shares to Mrs. Manorama Rathi cannot be considered as ingenuine transactions - CIT(A) should have analysed why AO accepted the same sale price when comes to computation of short term capital gains, where the benefits of indexation are not available and reject for computation of LTCG - AO cannot accept the sale price for purpose of computation of STCG and reject for computation of LTCG - CIT(A) is silent on this divergence/ inconsistency – Order of the CIT(A) set aside and the matter remitted back to the CIT(A) for re-adjudication – Decided in favour of Assessee.
|