Jaynt Vasudeo Aradhye Vs DCIT (ITAT Pune)
In a recent judgment, the Income Tax Appellate Tribunal (ITAT), Pune, presided over an appeal filed by Jaynt Vasudeo Aradhye, a super senior citizen and high-net-worth individual. The appeal contested the order passed by the Additional Commissioner of Income Tax (Addl./JCIT-A), Coimbatore, on February 7, 2024, for the assessment year (AY) 2022-23.
Background of the Case
Mr. Aradhye, a retired engineer, has been a regular taxpayer for over four decades. For the AY 2022-23, he filed his income tax return (ITR) on June 30, 2022, declaring a taxable income of ₹1.11 crore. The return was processed by the Centralized Processing Centre (CPC), and an intimation under Section 143(1) of the Income Tax Act was issued on March 3, 2023, raising an additional tax demand of ₹9.96 lakh.
Upon examining the CPC’s intimation, it was found that a brought-forward short-term capital loss (STCL) of ₹27.78 lakh from AY 2021-22 was not allowed in the return processing. Aradhye argued that the CPC’s denial of this loss, without providing any valid reason, was incorrect. He subsequently filed an appeal before the Additional Commissioner (JCIT-A) in Coimbatore, which was dismissed.
Key Issues Raised in the Appeal
The appellant raised multiple grounds in his appeal, including:
- The CPC was factually and legally incorrect in not considering the claim of the brought-forward short-term capital loss of ₹27.78 lakh.
- Under Section 143(1), neither the CPC nor the Assessing Officer (AO) has the power to make such adjustments, as they fall outside the scope of this section.
- The scheme under Section 115BAC does not prohibit the setting off of carried-forward short-term capital losses against capital gains income.
- The appellant reserved the right to seek a personal hearing if deemed necessary.
Facts of the Case
