IN THE ITAT AHMEDABAD BENCH ‘A’
Krupeshbhai N. Patel
versus
Deputy Commissioner of Income-tax
IT(SS) APPEAL NOS. 590 TO 595, 616, 626, 627, 637, 638 & 651 (AHD.) OF 2011
C.O. NOS. 12, 13, 20 & 21 (AHD.) OF 2012
[ASSESSMENT YEARS 2006-07 tO 2009-10]
JUNE 29, 2012
ORDER
[A] Appeals of Shri Krupeshbhai N. Patel
(a) A.Y. 2006-07 – IT(SS)A No. 590/Ahd/2011 (Assessee’s appeal)
Per Bench :
1. This is an appeal filed by the Assessee arising from the order of the ld. CIT(A)-IV, Ahmedabad dated 30.08.2011.
2. Grounds raised are hereby decided as follows.
3. Ground No.1 :-
1. The learned CIT(A) erred in fact and in law in confirming the action of the AO in not restricting the assessment/addition based on the material found during the course of search.
3.1 Ld. AR, at the outset, has informed that this is a technical ground in respect of certain additions which were alleged to be not based upon incriminating material, therefore the assessment u/s. 153A of the Act was bad in law. When the Bench has confronted that this technical issue is subjudice before the Special Bench, then ld. AR in the alternative has suggested not to adjudicate this ground rather to proceed on the merits of the case. In view of the concession expressed by Ld. AR Mr. Milin Mehta for not pressing this ground; as also Ld. DR Mr. Kartar Singh has no objection if decide the quantum additions, resultantly we hereby dismiss this ground being not pressed and proceed hereinbelow.
4. Ground No. 2 :-
2. The learned CIT(A) erred in fact and in law in confirming the action of the AO in disallowing short term capital loss of Rs. 22,38,207 (Rs. 21,84,395 in the case of Shri Navinbhai N. Patel) invoking provisions of section 94(7) of the Act.
4.1 Facts in brief as emerged form the corresponding assessment order passed u/s. 153A r.w.s. 143(3) dated 23/12/2010 for A.Y. 2006-07 were that a search u/s. 132 was carried out on a group named as “Amod Group of cases” on 11/02/2009. Consequent thereupon a proceeding u/s. 153A was initiated. During the course of assessment proceedings, it was noticed that the assessee had sold “mutual fund units”. The assessee has claimed short-term capital loss on sale of mutual funds. The AO had proceeded to examine the correctness of the claim in the light of the provisions of Section 94(7) of IT Act. The AO has placed on record the details of the date-wise purchase and sale of those units as under:-
