Jyoti H. Mehta Vs DCIT (ITAT Mumbai)
Summary : The Mumbai Bench of the Income Tax Appellate Tribunal partly allowed the assessee’s appeal and dismissed the Revenue’s appeal in Jyoti H. Mehta Vs DCIT concerning assessment year 1993–94. The dispute arose from the third round of assessment proceedings relating to the business of late Harshad S. Mehta, whose assets and bank accounts had been attached following notification under the Special Courts legislation. The fresh assessment dated 29 December 2016 determined total income at Rs.2,106.04 crore. The Tribunal examined the additions individually against the transaction records, bank statements, court proceedings and earlier decisions in the assessee’s own case, rather than accepting the repeated additions merely because they had appeared in earlier orders.
On the money market oversold position initially added at Rs.1,021.33 crore, the Tribunal corrected the computational errors and addressed the constituent securities separately. It deleted the negative opening balance relating to 11.5% Central Loan 2010, excluded transactions in which securities had not been delivered to National Housing Bank, and granted relief for matching purchases and sales, omitted purchases, a transaction undertaken only as a broker, and a loan incorrectly treated as a sale. It also deleted the separate Rs.159.72 crore addition relating to the negative opening balance of 11.5% Central Loan 2007. The Rs.524,53,68,500 addition concerning payments to SBI was deleted because the assessee had explained the payments through disclosed bank accounts and transaction records, while the Revenue neither rebutted the explanation with tangible evidence nor supplied the underlying documents despite requests and the Tribunal’s direction. The Tribunal directed adoption of money market trading loss at Rs.3,29,49,085 instead of Rs.32,94,908. It deleted the Rs.20,76,95,398 money market difference addition after finding that the disputed amounts represented payments by the assessee, rather than receipts.
