TaxTMI 
TaxTMI 
2023 (1) TMI 1249
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....s Shaleen Textiles and claimed as business share trading loss. The Learned CIT(A) erred in disallowing the above loss relying, inter alia, on the decision of Hon. Bombay HC in the case of Shri Sanjay Jain while completely ignoring the submissions made by the Appellant distinguishing the said case. The learned CIT(A) also erred in relying on various case laws which were distinguishable while ignoring the case law cited which were applicable to the case of the Appellant. 2) The learned CIT(A) erred in confirming an addition of Rs. 41,647/- made u/s 69C 3) The learned CIT(A) erred in confirming disallowance of Rs. 2,25,080/- made u/s 14A. The Learned CIT(A) gravely erred in not accepting the contention of the Appellant that in view of the ....
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....fits. Thereafter, the price was made to fall freely so that interested beneficiaries who had booked at high market price could avail bogus short term capital loss. The appellant held the shares for only one month and sold the shares at Rs. 28/-. It was gathered that such activity of providing bogus LTCG/STCG was alleged to have been done in the company in earlier year also. From the chart showing price and volume movement of the shares of the company from 01.04.2010 to 31.03.2014 the AO noticed that M/s Shree Shaleen Textiles Pvt. Ltd.., had net worth between Rs. 0.93 crore to Rs. 18.14 crore during the past 4 years i.e. between March, 2010 to March, 2014. The total assets during the period were between Rs. 0.92 crore to Rs. 18.95 crore. Th....
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.... carried forward. And the business loss of AY. 2018-19 was set off in AY. 2019-20. And for AY. 2020-21, business loss and unabsorbed depreciation for AY. 2020-21 was carried forward. And AY. 2021-22, business loss carried forward from AY. 2018-19 and AY. 2020-21 was set off. In AY. 2022-23, loss for AY. 2022-23 and unabsorbed depreciation were carried forward. 7. Thus, it is noted that neither any loss for relevant AY. 2014-15 was carried forward nor was such loss set off in subsequent years. [Refer page no. 72 of the PB which is the computation of income for AY. 2014-15 from which it is discerned that no business loss for AY. 2014-15 was carried forward]. 8. The assessee has brought to the notice of the AO that share of M/s. Shree Shalee....
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....e transaction carried out by the assessee in regard to the share of M/s. SSTL are genuine and bonafide and therefore fully allowable. However, according to assessee, the AO/Ld. CIT(A) has not appreciated the facts in the right perspective and has disallowed the business loss of the assessee while trading in this scrip. It is found that Assessee is a trader in shares which fact has been discerned from the facts discussed (supra). Therefore, the shares traded are his stock-in-trade. And once assessee is found to be a trader, the loss incurred during business need to be allowed as business loss. And therefore the AO is directed to allow the business loss of Rs.41,64,684/-. 10. Next ground of appeal of the assessee is against the action of the....