Case Law Details
Chalet Hotels Limited Vs DCIT (ITAT Mumbai)
Facts-
The assessee company filed its regular ROI u/s. 139(1) declaring a loss of Rs (-)1,89,90,32,020/. Thereafter a search and seizure action was carried out at the premises of the assessee and as a consequence of search action notice u/s. 153A was issued. In response, the assessee filed ROI declaring loss of ₹1,54,21,64,359/-. This return was further revised to ₹1,49,75,40,455/-. During the scrutiny proceedings before the Assessing Officer (AO) the assessee explained the cause of reduction of loss as inadvertent mistake in computing the loss under the head “income from capital gain.”.
The assessee submitted that it had purchased shares of “Intime Properties Private Limited” on 30/04/2013 for a sum of ₹54,90,47,767/-and were sold on 31/03/2016 for a sum of ₹54,32,72,901/-, thus, the shares are held for a period of 35 months and therefore loss of ₹57,74,866/- arising from the sale of those shares should have been reported as ‘short term capital loss’ whereas by mistake been reported as ‘long-term capital loss’, therefore after reducing indexed cost of acquisition of ₹63,20,77,335/-out of the sale consideration, resulted in loss of ₹8,88,04,454/-and same was claimed in the return of income filed under section 139(1) of the Act.
The Assessing Officer disallowed the claim of carry forward of the ‘short-term capital loss’ of on the ground that same has not been claimed in ROI filed u/s. 139(1) of the Act. On further appeal, the CIT also upheld the non-allowance of the carry forward of ‘short-term capital loss.’
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