Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Shri Madan I. Jain Versus DCIT, Circle 4 (1) Inv. Mumbai

2016 (9) TMI 441 - ITAT MUMBAI

Rejection of P/L A/C prepared by the assessee - assessee was practising as Chartered Accountant - addition on share trading rejection of claim of purchase and sale of shares - Held that:- As admitted by assessee that he has carried on trading activity in shares in the name of his family members, under these set of facts, we are of the view that the Ld CIT(A) was not correct in referring to the capital gains declared by the assessee in his return of income. The purchase of shares, in the accounti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of family members has not been controverted by the revenue. Under these set of facts, we are of the view that there is no reason to doubt the claim that the assessee has carried on trading activities in shares. - With regard to the purchase and sale of shares, we notice that the assessee has produced bills in support of the same. The assessee also expressed its inability to support other documents, since the records of the broker got destroyed in fire. We notice that the assessee has furnis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

les should be routed through the stock exchange. We are also of the view that the inability of the assessee to produce other documents for the reasons beyond his control cannot be used against the assessee. Accordingly, we are of the view that the tax authorities, in the facts and circumstances of the case, are not justified in rejecting the claim of purchase and sale of shares. - 9. Having held that the assessee’s claim of trading in shares should be accepted, we are of the view that the cl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed:- 7-6-2016 - Shri B.R. Baskaran (AM) And Ramlal Negi (JM) Assessee by Shri V.K. Tulsian Department by Shri Sanjeev Jain ORDER Per B.R. Baskaran, AM The appeal filed by the assessee is directed against the order dated 27- 01-2005 passed by Ld CIT(A)-IV, Mumbai and it relates to the assessment year 1995-96. The assessee is aggrieved by the decision of Ld CIT(A) in confirming the addition of ₹ 25.45 lakhs made by the assessing officer as against the income of ₹ 4.58 lacs declared by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee declared the shares of ₹ 23,37,000/- (Rs.10,37,000/- + ₹ 13,00,000/-) as stock in trade and accordingly prepared a profit and loss account by showing further purchase of shares, sale of shares and closing stock. The assessee also credited the amount of ₹ 25.45 lakhs declared by him during the course of search in the Profit and loss account. Accordingly he arrived at a profit of ₹ 4,58,890/- in the said profit and loss account and disclosed the same in the return of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

doing assessment de-nova. In the set aside proceedings also, the assessee did not co-operate and hence the AO completed the assessment again u/s 144 of the Act. Before Ld CIT(A), the assessee explained the reasons for not appearing before the AO and the same was found acceptable to Ld CIT(A). 4. The assessee had submitted that he has carried on the activity of trading in shares in the name of his brother named Shri Sanjay. He further submitted that he has submitted in the sworn statement taken u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

should be accepted. 5. The Ld CIT(A) called for a remand report from the AO on the explanations furnished by the assessee. In respect of the addition of ₹ 25.45 lakhs made by the AO, the assessing officer reported that the assessee cannot be considered to be a trader in shares. He further reported that the assessee has failed to furnish all the relevant details that are required to prove the claim of purchase and sales. He also reported that bills submitted by the assessee in support of pu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

6. We heard the parties and perused the record. We notice that the assessee has been submitting all through that he has carried on the activity of trading in shares in the name of his family members. Accordingly he treated the shares found during the course of search and also subsequent purchases as his trading stock. The closing stock available as at the year end was valued by the assessee at market value, if it was found to be lower than the cost. We notice that the tax authorities have rejec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n referring to the capital gains declared by the assessee in his return of income. The purchase of shares, in the accounting parlance, may be accounted as current investment or fixed investment depending upon the character in which it is going to be retained. Generally trading asset is referred to as current investment. Accordingly, we are of the view that the expression used in the statement given u/s 132(4) cannot be taken as determinative factor for deciding the character of the purchase of s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version