AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 1882
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....t in law in holding that the proceedings u/s. 147 were bad in law without specifying any cogent reason thereof. 2. Whether on the facts and the circumstances of the case, Ld. CIT(AI is correct in allowing long term capital loss of Rs. 3,25,52,531/-. 2. Brief facts of the case are that the assesese-Company filed its return of income showing a total loss of Rs. 4,85,00,762/-. The assessment was completed under section 143(3) determining total income of Rs. 5,80,973/- vide order dated 30.11.2006. Subsequently the Assessing Officer issued notice under section 148 on 22.06.2007 for the following reasons:- "(1) Service charges receiv ed of Rs. 16,46,910/- have been assessed under the head 'income from house property' when the same is ass....
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....ng Officer disallowed the assessee's claim for carry forward loss of long term capital gain in assessee's hand. 3. Ld. CIT(Appeals) cancelled the re-assessment proceedings for the following reasons:- (i) In the course of regular assessment under section 143(3), sufficient material was available with the assessing Officer and he did not draw any adverse inference against the assessee. Sufficient information and documents were available on Assessing Officer's record at the time of regular assessment which showed that the loss on sale of shares of ISG Traders Limi ted, which were owned and held by M/s. U.I. Trading Co. Limited and K.V. Trading Co. Limited, which had amalgamated with the assessee-company effective from 01.03.2003 and, the....
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.... of the sale of shares. He, therefore, submitted that the ld. CIT(Appeals) erred in holding that it was a case of change of opinion. 5. Ld. counsel for the assessee referred to pages 25 to 28 of the paper book and pointed out that the Assessing Officer had issued notice under sect ion 142 along with the questionnai re in which he specifically requi red the assessee to furnish contract notes in respect of the sale of shares. He pointed out that these queries were made with reference to the computation of total income filed by the assesese contained at pages 21 to 24 of the paper book and pointed out that at page 23 (back side), the assesese had furnished the detail s of long term capital loss amounting to Rs. 4,90,81,735/-, which, inter a....
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....the computation of total income, the assessee had specifically claimed the long term capital loss in respect of shares of ISG Traders Limited. There cannot be any quarrel with the proposition that a company cannot claim loss in respect of it s own shares. Therefore, when assessee claimed this loss in it s computation of income then a normal query from the Assessing Officer had to be on this count. The Assessing Officer in his notice under section 142(1) specifically required the assessee to furnish cont ract notes in respect of sale of shares and, therefore, it is clear that he had duly applied his mind to the fact s on record. It is t rue that there is no specific mention of the shares of assessee- company held by amalgamating company on w....
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....s suffered loss. The loss suffered on shares sold on 09.05.2003 was assessed in the assessee's hands in the original assessment because the amalgamation of the two companies was made effective from 01.03.2003. In the assessment order passed under sect ion 147/143(3), it is stated that the t ransaction for sale of shares of the assessee-company held by the transferee company were effected on 09.05.2003 as on 28.02.2003 (i.e. before 01.03.2003- appointed date of amalgamation). Thus, it is evident that the reassessment proceeding was initiated for re-appraisal of the fact s already on record and this was clearly a case of mere change of opinion. No fresh tangible material came to Assessing Officer's possession to justify the initiation of reas....