ACIT Vs Arissan Infrastructures Private Limited (ITAT Kolkata)
The ITAT Kolkata dismissed the Revenue’s appeals for AYs 2013-14, 2015-16 and 2017-18. At the outset, the Tribunal noted that the tax effect in all the appeals was below ₹60,00,000. Referring to CBDT Instruction No. 9 of 2024 dated 17.09.2024, it held that the appeals were not maintainable, as they did not fall within any of the exceptions prescribed in the Instruction. The Tribunal, however, observed that if, upon verification, the tax effect exceeded the prescribed limit or the cases fell within any exception, the Revenue would be at liberty to file a Miscellaneous Application for revival of the appeals within the time permitted under the Act.
On merits, the Tribunal observed that the assessee had not sold any shares and had consistently valued its stock of shares on the basis of cost or market value, whichever was lower. The shares were held in a demat account, and the books of account had not been rejected. The Tribunal held that the Assessing Officer’s disallowance of the valuation loss effectively amounted to changing the assessee’s consistently followed method of stock valuation, which was not permissible. It also noted that the relevant CBDT circular was not applicable, as there was no sale of shares. Accordingly, the Tribunal upheld the order of the CIT(A) deleting the addition and dismissed the Revenue’s appeals.
