Dinesh Kumar Tak Vs ITO (ITAT Jaipur)
ITAT Jaipur held that gain not realized during the year under consideration cannot be taxed under the head capital gain or as income under the head profit and gains of business or profession by valuing unsold scrips at market value.
Facts- The assessee is proprietor of Liquor shops of IMFL & Beer retail shop at Jaipur, Kota. The case was selected for limited scrutiny through CASS and thereby the statutory notices as require were issued to the assessee and were served upon him. AO noted that based on the MTM summary or Global Report for the period 01.04.2015 to 31.03.2016, the assessee earned profit of Rs. 34,50,071/- but as against that figure, the assessee had shown profit of Rs. 2,84,330/- plus deduction claimed. Accordingly, profit offered was derived at Rs. 2,90,513/- the said amount disclosed was deducted from Rs. 34,50,071/- and net amount of Rs. 31,59,558/- was added as income of the assessee.
Conclusion- Held that the alleged profit is on account of the valuation of the unsold scrips in the hands of the assessee and the said gain being not realized being in stock the unrealized gain cannot be taxed in the hands of the assessee. In the light of these facts, not disputed before us. We direct the ld. AO to delete the addition of Rs. 31,59,558/- being the gain not realized during the year under consideration, which cannot be taxed under the head capital gain or as income under the head profit and gains of business or profession and as such the ground raised by the assessee is allowed.
