TaxTMI 
TaxTMI 
2018 (3) TMI 1967
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....or the sake of convenience and brevity. 2. Since the facts and circumstances in all the three appeals are similar, appeal in the case of Shri Shailesh B. Ajmera being ITA No. 2961/Mum/2017 is taken as the lead case. This appeal is directed against the order of CIT(A)-52, Mumbai dated 28.02.2017, pertaining to the Assessment Year 2007-08, which in turn has arisen from the order dated 19.01.2015 passed by the Assessing Officer, Mumbai under section 143(3) r.w.s. 148 of the Income Tax Act, 1961 (in short 'the Act'). In this appeal, assessee has raised the following Grounds of appeal :- "1. (a) On the facts and circumstances of the case and in law the learned CIT (Appeal) erred in confirming the disallowance of claim of carry forward of Spec....
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.... As a perusal of the Grounds of appeal reveal, the two issues involved relate to the action of income-tax authorities in denying the claim of assessee for carry forward of speculation loss and short term capital loss of Rs.85,11,569/- and Rs.28,16,475/- respectively. 4. Briefly put, the relevant facts are that assessee is an individual deriving income from salary, investments in shares and securities and as a partner in a firm and AOP. For the assessment year under consideration, assessee filed his return of income on 31.07.2007 declaring total income of Rs.4,70,530/-, which was subject to a scrutiny assessment u/s 143(3) of the Act dated 09.11.2009 whereby the returned income was accepted. Subsequently, the assessment was reopened under S....
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....efit of carry forward of the aforesaid losses. 5. It is noticed that before the Assessing Officer and thereafter before the CIT(A), assessee vehemently pointed out that there was no justification for the said action inasmuch as so far as the claim of short term capital loss of Rs.28,16,475/- was concerned, the same was incurred on account of transactions through broker, M/s. Alankit Assignments Ltd., a concern which was no way related to Shri Mukul Choksi or his group; and, so far as the incurrence of speculation loss of Rs.85,11,569/- was concerned, assessee pointed out that the same was duly evidenced by the broker notes, bank statement evidencing the payment made relating to the transactions carried out with the broker, M/s. Sunchan Sec....
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....rendered nugatory with no consequence on determination of tax liability, either during the year or in the subsequent assessment years. 8. So far as the short term capital loss is concerned, the learned representative vehemently brought out that at each stage assessee has asserted that the transactions were through M/s. Alankit Assignments Ltd., which was a broking concern duly registered with the stock exchange and not related to Shri Mukesh Choksi or his group in any manner. In support, copies of the broker notes issued by M/s. Alankit Assignments Ltd., ledger account of the broker and a copy of the bank statement highlighting the entries of payments and receipts from/to the above stated broker were referred to. Pertinently, it has been p....
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....tely succeeding the assessment year for which the loss was first computed. In the case before us, the assessee claimed that it has incurred a speculation loss of Rs.85,11,569/- during the year and in the absence of any speculation income, he sought to carry forward the same to the subsequent assessment year. For the reasons noted by us in the earlier part of this order, the Assessing Officer inferred that the speculation loss was not genuine and he denied the carry forward of the same. The short point raised by the assessee is that it was permissible to carry forward and set-off such loss in the subsequent years for not more than four assessment years immediately succeeding the instant year. It has been factually brought out that in the ret....
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....dings in the case of Shri Mukesh Choksi and his group concerns. The counter argument by the assessee was that M/s. Alankit Assignments Ltd. was not a concern related to Shri Mukesh Choksi and, in support, the relevant documents being broker note, bank statement, etc. was produced. We find that the said plea has not at all been addressed by the Assessing Officer or by the CIT(A). The aforesaid plea is a fundamental aspect, which needs to be thrashed out at the beginning itself, an approach which is conspicuous by its absence in the orders of the authorities below. Therefore, we deem it fit and proper to set-aside the aspect relating to assessment of assessee's claim of carry forward of short term capital loss of Rs.28,16,475/- back to the fi....