Case Law Details
Nekkanti Systems Private Limited Vs ITO (ITAT Hyderabad)
Held that activities of share trading were carried out by the directors in their individual capacity from their unique client codes. Accordingly, loss incurred in same is not allowable in the hands of company
Facts-
After examining the material available on record and the information furnished by the assessee, Assessing Officer completed the assessment u/s 143(3) of the Act accepting the income returned. Subsequently, PCIT passed an order under Section 263 of the Income Tax Act, 1961, revising the assessment order passed by the AO on the ground that the said order was erroneous and prejudicial to the interest of the revenue department.
It was alleged that loss claimed on account of F&O was loss assessable in the assessment of Sri Karthik Velagapudi and Smt. P. Usha Rao and is not allowable loss in the assessment of the company.
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