Case Law Details

Case Name : Shailaja Vs ITO (ITAT Delhi)
Appeal Number : I.T.A. No. 7558/DEL/2018
Date of Judgement/Order : 20/04/2021
Related Assessment Year : 2015-16

Shailaja Vs ITO (ITAT Delhi)

It is pertinent to note that the assessee has filed original  return  of income as on 31/08/2015 declaring an income of Rs. 5,71,960/- along with paying of double taxes of Rs. 43,230/- including self-assessment tax of Rs. 33,230/- on 31/8/2015. In the original return of income loss against sale of property of Rs.1,12,76,573/- was not claimed by the assessee  under  the bonafide belief that taxes are paid against income only. The assessee did not claim TDS of Rs.52,500/- deducted against the sale of property but paid additional self assessment tax of Rs. 33,230/-. The  assessee  has  not  given credit of Rs. 52,500/- as the assessee was under  the  belief  that  TDS  against loss is not  claimable. But the fact  remains that there was a sale of property which  should have  been declared by the assessee either  in the original return or in the revised return and should have paid taxes accordingly or at the most should have offered to tax to the Revenue. Thus, the assessee has not done the same in the present case. There was property  purchase  and  though  the assessee is entitled to claim benefit under Section 54F, but the same is determined when she satisfies all the conditions laid down in the  said provisions, the same was not done by the assessee at the revised income stage also. Hence, the Assessing Officer has rightly made addition as  well  as  the CIT(A) rightly confirmed the addition. Hence, appeal of the assessee  is dismissed.

FULL TEXT OF THE ITAT JUDGEMENT

This appeal is filed by the assessee against order dated 31/08/2016 passed by CIT (A)-Meerut for assessment year 2012-13.

2. The grounds of appeal are as under:-

“1. The disallowance of loss of STCG of 1,12,76,573/- is bad in law and on the facts of the case.”

2. The basis of disallowance is bad in law and on the facts of the 

3. The assessee filed her original return of income as on 31/08/2015 declaring an income of Rs. 5,71,960/- along with paying of double taxes of Rs. 43,230/- including self-assessment tax of  33,230/- as on 31/8/2015. In the original return of income loss against sale of property of Rs.1,12,76,573/- was not claimed by the assessee under the bonafide belief that taxes are paid against income only. The assessee is a Government School Teacher till 2017 and left the job due to her health. The assessee did  not  claim  TDS  of Rs.52,500/- deducted against the sale of property but paid additional self assessment tax of Rs. 33,230/-. The assessee has not claimed credit of Rs. 52,500/- as she was under the belief that TDS against loss is not claimable. The Assessing Officer assessed the total  income  of  Rs.5,35,980/-  and disallowed short term capital loss of Rs.1,12,76,573/- and did not allow  the same to be carried forward for set off.

4. Being aggrieved by the assessment order, the assessee filed appeal beforethe CIT(A). The CIT(A) dismissed the appeal of the

5. The Ld. AR submitted that that if original return is filed before due dateand on discovery of any omission or wrong statement, return can be revised u/s 139(5). The  AR relied upon the decision  of  the  Hon’ble  Delhi  High Court in case of Escorts Mahle Ltd. vs. CIT 2009 119 ITD 119 (Delhi). The Ld. AR further submitted that the entire process created artificial loss which  is set off against subsequent capital gain income of Rs. 34,73,196/-  in  Assessment Year 2017-18 is incorrect observation by the Assessing Officer. The Ld. AR submitted that the assessee incurred loss as on 8/7/2014 and earned capital gain as on 3/1/2017. In other words, the assessee was not aware of future earning at the time of loss. The Ld. AR further submitted that the assessee set off this loss against income by filing belated return during assessment proceedings of Assessment Year 2015-16 only as on 25/11/2017 after verbal confirmation of allowbility of loss from the Assessing  Officer.  The  Ld.  AR further submitted that it proves the bonafide belief of assessee and even if the set off loss was ignored, the assessee was eligible to claim deduction u/s 54F of the Income Tax Act, 1961 resulting in ‘NIL’ taxability in the  hand  of  the assessee.

6. The DR relied upon the assessment order and the order of the CIT(A).

7. We have heard both the parties and perused the material available on It is pertinent to note that the assessee has filed original  return  of income as on 31/08/2015 declaring an income of Rs. 5,71,960/- along with paying of double taxes of Rs. 43,230/- including self-assessment tax of Rs. 33,230/- on 31/8/2015. In the original return of income loss against sale of property of Rs.1,12,76,573/- was not claimed by the assessee  under  the bonafide belief that taxes are paid against income only. The assessee did not claim TDS of Rs.52,500/- deducted against the sale of property but paid additional self assessment tax of Rs. 33,230/-. The  assessee  has  not  given credit of Rs. 52,500/- as the assessee was under  the  belief  that  TDS  against loss is not  claimable. But the fact  remains that there was a sale of property which  should have  been declared by the assessee either  in the original return or in the revised return and should have paid taxes accordingly or at the most should have offered to tax to the Revenue. Thus, the assessee has not done the same in the present case. There was property  purchase  and  though  the assessee is entitled to claim benefit under Section 54F, but the same is determined when she satisfies all the conditions laid down in the  said provisions, the same was not done by the assessee at the revised income stage also. Hence, the Assessing Officer has rightly made addition as  well  as  the CIT(A) rightly confirmed the addition. Hence, appeal of the assessee  is dismissed.

8. In result, appeal of the assessee is

Order pronounced in the Open Court on this 20th Day of April, 2021

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