The Income Tax Appellate Tribunal (ITAT) Ahmedabad Bench upheld the disallowance made by the assessing officer on account of failure to prove long term capital loss arises from the sale of shares of the company.
Assessee, Pat – Fab Engineering Pvt. Ltd filed its return of income along with claiming long term capital gain. The case was selected under CASS and notice under Section 143(2) Income Tax Act, 1961 was issued served upon the assessee.
During the course of assessment proceedings, the Assessing Officer observed that assessee has shown loss of Rs. 5,14,800/- (520000-5200) in Profit & Loss Account and has claimed Long Term Capital Loss of Rs. 14,47,390/- in statement of income on account of sale of shares of company.
No proof showing the transaction as well as in respect of purchase of share was filed by the assessee during the course of assessment proceedings and therefore, the Assessing Officer disallowed the LTCL at Rs.14,47,390/-.
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal) {CIT(A)}, who dismissed the appeal . Accordingly, against the order the assessee filed an appeal before the tribunal
During the proceedings M.K. Patel , counsel for the assessee submitted that the CIT(A) erred in disallowing the claim of LTCL of Rs. 14,47390/-.
Ramesh Kumar, Counsel for Revenue, supported the decision of lower authorities.
It was observed by the tribunal that the assessee did not produce any evidence for claim of LTCL was produced during the assessment proceedings as well as before CIT(A). Thus also considering the submission of the assessee that when the business operation of the assessee is closed the assessee is not in a position to submit the evidence.
The tribunal after reviewing the facts and submissions of the both parties, a single member bench of Suchitra Kamble, (Judicial Member) determined that claim of LTCL would not be proved by the assessee before any of the authorities.
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