TMI Blog2018 (2) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... ht forward losses for A.Y. 2006-07 against her income for the year under consideration, viz. A.Y. 2011- 12 - Decided against revenue - ITA No. 177/Mum/2016 - - - Dated:- 20-12-2017 - Shri P.K. Bansal, Vice President And Shri Ravish Sood, JM For the Appellant : Shri Jignesh Shah, A.R. For the Respondent : Shri Saurabh Deshpande, D.R. ORDER PER RAVISH SOOD, JUDICIAL MEMBER: The present appeal filed by the assessee is directed against the order passed by the CIT(A)-30, Mumbai, dated 09.11.2015 which in itself arises from the order passed by the A.O under Sec. 271(1)(c) of the Income Tax Act, 1961 (for short Act ), dated 30.07.2014. The assessee assailing the order of the CIT(A) had raised before us the following grounds of appeal:- 1.On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in confirming the penalty of ₹ 3,68,827/- imposed upon the appellant by the Assessing Officer ( AO ) under section 271(1)(c) of the Act, without appreciating the facts and the appellant s submissions in right perspective, especially the fact that the amount of brought forward capital loss set off against the current year s income w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt STCG ) for the year under consideration, as under : A.Y. Long Term Capital Loss Short Term Capital Loss Total B/F loss set off 2003-04 ₹ 25,746 - ₹ 25,746 2004-05 ₹ 10,12,995 - ₹ 10,12,995 2005-06 - - - 2006-07 - ₹ 4,08,341 ₹ 4,08,341 2007-08 - - 2008-09 - ₹ 31,35,102 ₹ 31,35,102 2009-10 - - - 2010-11 - ₹ 2,98,180 ₹ 2,98,180 Total ₹ 48,80,364 The A.O after deliberating on the aforesaid claim of the assessee obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her returns of income were thereafter filed by another Chartered Accountant. It was submitted by the assessee that though it remained as a matter of fact that the capital loss for the previous year ended 31.03.2006 relevant to A.Y. 2006-07 was set off against the capital gain of the previous year ended 31.03.2008 relevant to A.Y. 2008-09, however, the Chartered Accountant who was looking after the income tax matters of the assessee during the year under consideration, had by way of a bonafide mistake claimed the set off of the capital loss for A.Y 2006-07 while filing the return of income for the year under consideration, viz. A.Y. 2011-12, as the income tax records of the assessee for the year in which the same had been set off, viz. A.Y. 2008-09 were not available before him. Thus, it was submitted by the assessee that the brought forward capital loss for A.Y. 2006-07 which though had been exhausted against the capital gain for A.Y. 2008-09, was set off against the capital gain of the assessee for the year under consideration on account of a bonafide mistake. That as regards the observations of the A.O that the assessee had wrongly set off the capital loss of A.Y. 2005-06 of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O u/s 271(1)(c) in respect of the excess claim of set off of brought forward loss of ₹ 16,80,280/- against the income for the year under consideration, was well in order and thus did not call for any interference on his part. 6. The assessee aggrieved with the order of the CIT(A) had carried the matter in appeal before us. The Learned Authorized representative (for short A.R ) submitted that the excess claim of set off of brought forward loss of ₹ 16,80,280/- against the income for the year under consideration, viz. A.Y. 2011-12 had occasioned due to the bonafide mistake on the part of the Chartered Accountant who had filed the return of income of the assessee. The Ld. A.R. reiterated the facts submitted before the lower authorities and therein averred that earlier the tax related issues of the assessee were being looked after by her husband Mr. Jatin Sarvaiya who is a Chartered Accountant by profession, but however, as he suffered an acute RF Temporo Paired Bleed and had slipped into coma since June, 2008, therefore, her returns of income were thereafter filed by another Chartered Accountant. It was submitted by the Ld. A.R. that though it remained as a matter of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting off the capital gain to the said extent in the hands of the assessee for A.Y. 2008-09, had occasioned on account of an inadvertent bonafide mistake on the part of her Chartered Accountant who had filed her return of income for the year under consideration, viz. A.Y. 2011-12. We find that the assessee had throughout submitted that the inadvertent mistake in claiming of excess set off of capital loss during the year under consideration had crept in for the reason that earlier her tax related issues were being looked after by her husband Mr. Jatin Sarvaiya who is a Chartered Accountant by profession, but however, as he unfortunately suffered an acute RF Temporo Paired Bleed and had slipped into coma since June, 2008, therefore, her returns of income were thereafter filed by another Chartered Accountant. It was submitted by the Ld. A.R. that though it remained as a matter of fact that the capital loss for the previous year ended 31.03.2006 relevant to A.Y. 2006-07 was set off against the capital gain of the previous year ended 31.03.2008 relevant to A.Y. 2008-09, however, the Chartered Accountant who was looking after the income tax matters of the assessee during the year unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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