2024 (12) TMI 1718

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....the Income Tax Act, 1961 ["the Act"] pertaining to assessment year 2006-07. 2. The assessee has raised following grounds of appeal:- 1. "That the learned Commissioner of Income Tax (Appeals)-XXXII, New Delhi has grossly erred both in law and on facts in upholding disallowance of short term capital loss of Rs. 1,01,50,000/- incurred on sale of shares of M/s Magnum Steel Ltd. and M/s Magnum International Ltd. 2. That the disallowance has been sustained by the learned Commissioner of Income Tax (Appeals) on complete misconception of facts, misinterpretation of provisions of law, and, overlooking the documentary evidence on record including submissions of the appellant and as such the same is untenable. 2.1 Th....

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....unds of appeal, the assessee has challenged the disallowance of Short Term Capital Loss of INR 1,01,50,000/- arising on sale of shares of M/s. Magnum Steel Ltd. and M/s. Magnum International Ltd. 3. As per the facts emerging from assessment order framed under s. 143(3) of the Act dated 29.12.2008 for AY 2006-07 in question, the assessee filed return of income at INR 4,51,313/-. The assessee inter alia claimed short term capital loss of INR 1,01,50,000/- which was set off short term capital gains of INR 1,05,72,796/-. The AO in the course of assessment found that the short term capital loss arising on sale of two unlisted companies namely M/s. Magnum Steel Ltd. and M/s. Magnum International Ltd. are not genuine. The AO accordingly, disall....

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....s under s. 153A of the Act since AY 2006-07 falls within six years period of the date of search. The Ld. Counsel for the assessee thus urged for appropriate relief in the matter. On being inquired by the Bench, the Ld. Counsel for the assessee submitted that he does not have anything to say to controvert the action of AO towards disallowances of short term capital loss on the aspects of merits. 7. The Ld. CIT DR for the Revenue relied upon the first appellate order and submitted that the ratio of Pr. CIT v. Abhisar Buildwell (P.) Ltd. (supra) does not apply in the facts of the case since the assessment should completed at the time of search and thus the action of the AO is accord with provisions of the Act. 8. We have carefully consid....