9911796707
TMI Blog2013 (4) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... . The case was selected for scrutiny and thereafter the assessment was framed u/s. 143(3) vide order dated 31-10-2006 and the income was assessed at Rs. 34,26,900/- after making additions. Assessee being aggrieved by the order of A.O. carried the matter before CIT (A). CIT (A) vide order dated 18-9-2009 granted partial relief to the assessee. Aggrieved by the aforesaid order of CIT (A) the Revenue is now in appeal before us. The assessee has also filed Cross objection. The grounds of appeal raised by the Revenue reads as under:- "1. The Ld. CIT (A) has erred in law and on facts in considering the purchase and sale transaction of shares of Divis Lab as contrived loss and also directed to treated as speculation loss. 2. The Ld. CIT(A) has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd sale were done by the assessee with its related person namely Park Light Investment P. Ltd., the purchase and sale of shares did not appear in the demat account of the assessee, the transaction was not done through stock exchange but were off market transactions, no payment was received or made by the assessee for the sale and purchase of shares. In the light of aforesaid facts the A.O. concluded that the transactions of purchase and sale of shares were only paper transaction and the assessee had just booked loss. He accordingly disallowed the loss of Rs.31,39,183/- which was treated by him as a contrived loss. Aggrieved by the action of A.O., assessee carried the matter before CIT (A). CIT (A) after considering the submissions of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment proceedings. The A.O. has also failed to consider that the appellant has acted as a prudent business man with profit motive in mind. It had first sold shares with the intention to purchase the same when the prices of such scrips fell down. However, as price of shares of Divis Lab increased and therefore, the appellant had to purchase the same in order to minimize the loss. 8. It is also observed that on similar issue, in the case of appellant, appeal was decided for A.Y. 2003-04 by the CIT (A)-III, Ahmedabad vide appellate order dated 30-3-2007. The aforementioned order of the Ld. CIT(A)-III, Ahmedabad has been further confirmed by the Hon'ble ITAT, Ahmedabad (Bench-B) in ITA No.2521/Ahd/2007 order dated 31-7-2009. 9. In view of abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the copies of bills were submitted before the A.O. He further submitted that the facts of the case in A.Y. 2003-04 are identical to that of the year under appeal and the view taken by Hon'ble ITAT be followed. 9. We have heard the rival submissions and perused the material on record. The factual position that emerges is that the assessee had entered into transactions of purchase and sale of shares of Divis Labs Ltd., a company listed on the stock exchange. The transactions of sales were entered before the corresponding purchase transactions and without any existing stock being available with assessee. In the process of sale and purchase of shares the assessee is reported to have incurred net loss. The transactions of purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchased by Hasmukh Vora in Individual capacity but by mistake the delivery was given in the demat account of HUF. A. O. did not accept the contention of the assessee. He was of the view that the transaction of 8200 shares (24600 less 16400) were done out of the books and the same was not disclosed in the Return of income. He accordingly worked out the profit at Rs.1,65,471/- and added to the income of assessee. Aggrieved by the action of A.O. assessee carried the matter before CIT (A). CIT (A) after considering the submissions of the assessee deleted the addition by holding as under:- "12. I have considered the submissions of the appellant. I find that Shri Hasmukh N.Vora (Indl.) has purchased 8,200 shares of TV Today on 19-01-2004 and sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
