Case Law Details
Fab Engineering Pvt. Ltd. Vs ITO (ITAT Ahmedabad)
In a recent ruling, ITAT Ahmedabad ruled on a significant case concerning Fab Engineering Pvt. Ltd. and the Income Tax Officer (ITO). The dispute revolved around Fab Engineering’s claim of long-term capital loss from the sale of company shares, which the ITO had previously disallowed.
Fab Engineering’s appeal against the Ld. Commissioner of Income Tax (Appeals) was based on the disallowance of a long-term capital loss claim amounting to Rs. 14,47,390. The firm also disputed an additional disallowance of Rs. 75,79,579 under Section 43B of the Act and the levy of interest under sections 234A, 234B and 234C.
The ITAT upheld the decision of the Assessing Officer and the CIT(A) to disallow the long-term capital loss claim, on the grounds that Fab Engineering was unable to produce any proof of the claimed loss during the assessment proceedings. However, when it came to the disallowance under Section 43B, the ITAT sided with Fab Engineering. It ruled that the Assessing Officer and CIT(A) had not justified this disallowance, as the original treatment of interest paid remained the same.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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