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ITAT restored the issue of loss in future & options to AO
ITAT restored the issue of loss in future & options to AO
Assessee declared income at Rs 5,81,698. On scrutiny of accounts, AO found that assessee had shown income from business and profession at Rs 3,52,983 and had set off F &O loss at Rs 3,00,904. AO could not verify details from NSDL on the basis of assessee's PAN .AO disbelieved the transaction and disallowed loss and made addition. CIT (A) dismissed assessee's appeal . ITAT restored the issue to AO as information collected by AO was not specific.-501654
1. Assessee filed his return of income declaring total income at Rs.5,81,698.
2. On scrutiny of the accounts, it revealed that the assessee had shown income from business and profession at Rs.3,52,983 and had set off future and option loss of Rs.3,00,904.
3. The AO wrote a letter to the National Stock Exchange, Mumbai to confirm assessee’s stand.
4. AO disbelieved the transaction of the assessee in F&O and disallowed the loss claimed by it and made made addition.
5. He determined the taxable income of the assessee at Rs.8,82,600 as against Rs.5,81,698 declared by the assessee.
6. CIT(A) dismissed assessee’s appeal.
On appeal, the ITAT held as under:
7. We find that the information collected by the AO was not specific one.
8. Any adverse inference can be drawn, if it is highlighted by the NSDL that these transactions have not been transacted in the Exchange.
9. We, therefore, set aside the impugned orders and restore this issue to the file of the AO for re-adjudication.
Case Reference - Shri Babubhai Harjibhai Patel vs ITO.
IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, AHMEDABAD
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND
SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
ITA.No.1925/Ahd/2015
(Asstt. Year: 2010-11)
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