TaxTMI 
TaxTMI 
2020 (11) TMI 774
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....der : 3. Assessee is an individual stated to be engaged in insurance business and whole sale main stockiest of Cigarettes. Assessee is also stated to be deriving income from house property and income from other sources. 4. A search and seizure operation u/s 132 of the Act was conducted on 17.09.2010 in the case of Sanya Group of cases and assessee was also covered u/s 132(1) of the Act as he is reported to be the part of the group. During the course of search and seizure operation at the residence of the assessee, a diary of 'TATA Motors' was found and seized which contained the details of advances and cash received with regard to the property transactions done by the assessee during the relevant year 2011- 12. Statement of the assess....
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....forward unabsorbed short term capital loss of Rs. 49,83,312/-. According to AO, the non-declaration of additional income of Rs. 15.22 crore amounted to retraction from the statement recorded u/s 132(4) of the Act of the income to the extent of Rs. 49,83,312/-. AO therefore noted that since assessee had failed to deposit the tax on the difference of Rs. 49,83,312/-, the assessee was liable for penalty within the meaning of Section 271AAA of the Act and accordingly, by order dated 21.03.2016 levied penalty u/s 271AAA of Rs. 1,52,20,000/-. (10% of Rs. 15,22,00,000/-). 7. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who vide order dated 02.02.2018 dismissed the appeal of the assessee and thereby confirmed the o....
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....ght forward unabsorbed capital losses), he submitted that in the quantum appeal of the assessee for AY 2011-12, the Tribunal in ITA No.2789/Del/2015 order dated 29.07.2020 has held that the Revenue was not right in disallowing the set off of short term capital loss brought forward from earlier years which were incurred by the assessee in A.Y. 2007-08 and which has been allowed by the Revenue to be carried forward till A.Y. 2010-11. He pointed to the relevant findings of the Tribunal order which has been placed in the paper book. He therefore submitted that in the light of the aforesaid decision of the Tribunal in quantum appeal, the assessee was fully justified in adjusting the brought forward capital losses and since on the resultant incom....
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....ard of unabsorbed short term capital losses). On such resultant additional income of Rs. 14.72 crores (rounded off), assessee had also paid the tax at applicable rates. It is the case of the Revenue that the adjustment of short term capital loss of Rs. 49.83 lakh (rounded off) amounted to the retraction of income to that extent and since on such amount of Rs. 49,83,312/-, assessee had not paid the tax, assessee was liable for penalty u/s 271AAA of the Act. We find that against the order of AO in disallowing the claim of set off of brought forward capital loss of Rs. 49,83,312/- against the income declared, assessee had carried the matter before the co-ordinate Bench of Tribunal. The Tribunal vide order dated 29.07.2020 in ITA No.2789/Del/20....
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....atutorily tenable. 10. The ld. CIT (A), having accepted the surrendered income which was offered under the short term capital gain as declared during the search proceedings u/s 132(4), failed to adhere to the provisions of computation of income as provided under the Income Tax Act. The computation of income of the assessee is as under: i) Business Income Net Loss as per P&L A/c (19,08,891.64) ii) Short Term Capital Gain for the year Less: Unabsorbed Short Term Loss B/f from A.Y.2008-09 15,22,00,000.00 49,83,312.64 14,72,16,687.36 iii) Income from House Property 2,69,500.00 iv) Income from other sources 4,44,436.56 Gross Taxable Income 14,60,21,732.00 ....