Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Sri Sibendu Basu Versus I.T.O., Ward-54 (4) , Kolkata

2018 (1) TMI 242 - ITAT KOLKATA

Disallowance of loss - loss suffered due to brazen embezzlement during the course of share trading business by the errant officials of Religare Securities Ltd - Held that:- As perused the award dated 10.06.2008 filed by the assessee it appears that the claim of the assessee against M/s. Religare Securities Ltd was that they had incurred a loss in the matter of trading on behalf of the assessee in future and option segment and that because of the negligence in not taking proper position in future .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s Ltd. This evidence is sufficient to prove the claim of the assessee that he had incurred a loss of ₹ 15,76,022/-. The loss is directed to be allowed as deduction. Ground no.1 is allowed. - Addition on account of interest on IL & FS for margin funding in Future and Option Trading of Share - Held that:- The assessee claims that interest need not be capitalized as cost of investment . Therefore the claim for allowing as revenue expenditure ought to have been allowed by the Revenue autho .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appeal by the assessee against the order dated 03.01.2017 of CIT(A)-21 Kolkata relating to A.Y.2009-10. 2. Ground Nos. 3 and 4 were not pressed and the same are dismissed as not pressed. Ground no.5 is general in nature calling for no special adjudication. Ground No.1 raised by the assessee reads as follows :- 1. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the action of the Ld. A.O. in making disallowance of loss ₹ 7,.13,392/- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appointed M/s. Religare Securities Ltd, who is carrying on share and share brokerage activity as a corporate member of Bombay Stock Exchange Ltd. He had opened an account and had off-line trading and DP account with M/s Religare Securities Ltd. He also dealt in Future and Option segments on NSE Ltd, through his stock broker. It was the plea of the assessee that M/s Religare Securities Ltd had carried out certain transactions on behalf of the assessee without proper instructions from the assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lating to the contract notes and other documents for the remaining loss of ₹ 7,13,392/- was not furnished, the AO was of the view that the said loss cannot be allowed as deduction. The assessee pointed out that it had raised a dispute for Arbitration with regard improper execution of contracts by M/s. Religare Securities Ltd and had made a claim against M/s. Religare Securities Ltd for a sum of ₹ 15,76,022.07 which was the unauthorized transaction carried out by the stock broker whic .....

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 the assessee cannot be entertained. Hence, loss to the extent of ₹ 7,13,392/- was not allowed as deduction in computing total income of the assessee. 5. On appeal by the assessee the CIT(A) confirmed the order of the AO. Aggrieved by the order of CIT(A) the assessee is in appeal before the Tribunal. 6. The ld. counsel for the assessee reiterated the submissions made before the CIT(A). He also filed a copy of the arbitrator award dated 10.06.2008 in which the claim of the assessee was re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

incurred by the assessee was a sum of ₹ 15,76,022/- owing to dealings by M/s. Religare Securities Ltd. According to him this evidence was sufficient to allow the claim of the assessee. The ld. DR relied on the order of the CIT(A). 7. I have considered the rival submissions. I have also perused the award dated 10.06.2008 filed by the ld. Counsel for the assessee before me. It appears that the claim of the assessee against M/s. Religare Securities Ltd was that they had incurred a loss 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

as of ₹ 15,76,022/-. The arbitrator ultimately found no substance in the claim of the assessee and dismissed the claim of the assessee against M/s. Religare Securities Ltd. In my opinion this evidence is sufficient to prove the claim of the assessee that he had incurred a loss of ₹ 15,76,022/-. The loss is directed to be allowed as deduction. Ground no.1 is allowed. 8. Ground No.2 raised by the assessee reads as follows :- 2. For that on the facts and in the circumstances of the case .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

#8377; 85,743/- had been capitalized by debiting the investment account. In the above circumstances the AO was of the view that since the interest expenses has been capitalized as part of the investment the same cannot be allowed as deduction and revenue expenditure while computing the total income of the assessee. 10. Before CIT(A) the assessee submitted that the interest was wrongly capitalized as cost of investment in the books of accounts and the treatment shown by the accountant was erroneo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

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

Go to Mobile Version