In a recent case, the Calcutta High Court dismissed the petition as the issue of bogus loss on sale of share doesn’t arise from Income Tax Appellate Tribunal ( ITAT ) order which was challenged in the writ petition.
The petitioner-revenue filed appeal in a delay of 138 days in filing the appeal. As the court was satisfied with the reasons given, the delay in filing the appeal is condoned. The appeal by the Income Tax Department filed under Section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated July 11, 2023 passed by the Income Tax Appellate Tribunal for the assessment year 2012-2013.
Ready to Grow? Choose a Course That Fits Your Goals!
The question is whether on the facts and circumstances of the case, the ITAT justified in law in deleting the addition of Rs.10,51,200/- on the issue of bogus loss on sale of shares, without considering the fact that the assessee failed to prove the identity of the alleged shareholders, their creditworthiness and also the genuineness of the whole transactions.
The advocate for Zulu Merchandise Pvt Ltd,the respondent has raised a preliminary objection to the maintainability of this appeal on the question of law suggested by the revenue. It was evident that the respondent/assessee succeeded before the Tribunal on the question of limitation and this was the sole issue which was considered by the Tribunal.
Ready to Grow? Choose a Course That Fits Your Goals!
The division bench of Chief Justice T S Sivagnanam and Justice Hiranmay Bhattacharyya
found that the question of law suggested by the revenue in the appeal do not arise out of the order passed by the Tribunal. Therefore, the Court held that the appeal cannot be entertained on the question of law as suggested by the revenue and dismissed the same.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
