Case Law Details
Avisha Credit Capital Ltd. Vs ITO (ITAT Delhi)
Undisputedly, the loss from sale of shares was debited to profit and loss account as trading loss. While completing the assessment under section 143(3) of the Act, the Assessing Officer obviously has accepted the claim. The Assessing Officer has initiated proceeding under section 154 of the Act qua the claim of loss on the ground that the shares were held as investment and not as stock in trade. It is observed, in reply to show-cause notice issued under section 154 of the Act, the assessee has clearly and categorically submitted that the shares were held as stock in trade and the issue was examined in course of scrutiny assessment. Thus, from the aforesaid facts, it is patent and obvious that the issue, whether the loss on sale of shares claimed by the assessee is a trading loss or capital loss is a highly debatable issue. That being the factual position emerging on record, in my considered opinion, proceeding under section 154 of the Act could not have been initiated by the Assessing Officer to rectify the so called mistake as it is not a mistake in the nature of mistake apparent on the fact of record. Therefore, I delete the addition of Rs.6,00,000/-. Ground raised is allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This is an appeal by the assessee against order dated 30.04.2019 of learned Commissioner of Income Tax (Appeals)-1, New Delhi, for the assessment year 2014-15.
2. When the appeal was called for hearing, none appeared on behalf of the assessee. Perusal of record reveals that, though, on multiple occasions the appeal was fixed for hearing earlier but, assessee never appeared. Since, sufficient opportunities have been granted to the assessee to represent its case, which the assessee failed to avail, I deem it appropriate to proceed with the appeal ex-parte qua the assessee after hearing learned Departmental Representative and based on the materials available on record.
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