2025 (6) TMI 138

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....oss account it was seen by the AO that the Assessee has made equity transaction of Rs. 7,69,411/- but has not filed its return of income within stipulated time period u/s. 139(1) of the Act whereas, income of the profit from the equity shares was of Rs. 7,69,411/-. Thus the loss claimed by the Assessee was not allowed by the Assessing Officer and consequently income/profit from the equity share of Rs. 7,69,411/- was taxed in the hands of the Assessee as short term capital gain. 3. The Assessee being aggrieved challenged the said addition before the Ld. Commissioner and filed following submissions. "3. In response to notice issued u/s 250 of IT Act the appellant filed return submission as under: MOST RESPECTFULLY SUBMITTED FOR YOUR LORD....

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....period u/s 139(1) of the Act 1961. Whereas the income/profit from the equity shares of Rs. 7,69,411/- is taxed in the hands of the assessee as short term capital gain. Penalty proceedings u/s 271(1)(c) is being initiated for furnishing inaccurate particulars of income." In this regard, we would like to respectfully bring it to the notice of the learned Commissioner (Appeals) that the said Short Term Capital Gain of Rs. 769410 was merely from one broker, ICICI Direct. There are two such other brokers and the net results of transactions from both of them were losses of Rs. 1917510 (Progressive Share Brokers Pvt. Ltd.) and Rs. 31229 (Globe Capital Market Ltd). Thus, under the Source 'Short Term Capital Gain' of the Head 'Income fro....

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....s humbly prayed that the appropriate income tax authorities be directed to expunge the aforesaid Demand Notices. 4. The Ld. Commissioner though considered the aforesaid submissions of the Assessee however, not been impressed, confirmed the aforesaid addition of Rs. 7,69,411/- by observing and holding as under: "4. The facts of the case, in brief, are that the appellant is a Commander in Indian navy and filed return of income for the AY 2015-16 on 01.08.2016 declaring total income of Rs. 8.63.440/- in the head income from salary. As per AIR information, it is noticed that the assessee is doing share transactions which was not declared in the return of income. During the assessment proceedings, the assessee was asked to submit details rela....

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....g aggrieved is in appeal before this Court. 6. Heard the parties and perused the material available on record and given thoughtful consideration to the rival claims of the parties. Admittedly the Assessee has also made losses in the transaction of shares carried out from Progressive Shares Brokers Pvt. Ltd and Glob Capital Market Ltd., respectively to the tune of Rs. 19,17,510/- and Rs. 31,229/- but inadvertently or due to lack of knowledge in the original return of income had shown the income Rs. 7,69,411/- received from ICICI direct only. Somehow on realizing his mistake, the Assessee revised his computation of income along with capital gain/loss statement of all three accounts maintained and ultimately shown/recorded loss of Rs. 11,79,3....