TWINSTAR FINVEST P.LTD, MUMBAI v. ITO 5(30(3), MUMBAI

ITA 4211/MUM/2012 | 2007-2008
Pronouncement Date: 24-07-2013 | Result: Dismissed

Appeal Details

RSA Number 421119914 RSA 2012
Assessee PAN AABCT1168Q
Bench Mumbai
Appeal Number ITA 4211/MUM/2012
Duration Of Justice 1 year(s) 1 month(s) 9 day(s)
Appellant TWINSTAR FINVEST P.LTD, MUMBAI
Respondent ITO 5(30(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 24-07-2013
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 24-07-2013
Assessment Year 2007-2008
Appeal Filed On 15-06-2012
Judgment Text
. IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH MUMBAI BEFORE SHRI R. K. GUPTA JM ITA NO. 4211 / MUM/ 20 1 2 ( ASSESSMENT YEAR : 2007 - 08 ) TWINSTAR FINVEST PVT. LTD. 326 KARIM BESIDE SUPER CINEMA GRANT ROAD MUMBAI - 400 007 VS. ITO 5(3)(3) MUMBAI PAN/GIR NO. : A ABCT 1168 Q ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : NONE /REVENUE BY : SHRI PRITAM SINGH DATE OF HEARING : 10 TH JULY 201 3 DATE OF PRONOUNCEMENT : 24 TH JULY 2013 O R D E R TH IS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 6 - 3 - 2012 PASSED BY LEARNED CIT(A) - 9 MUMBAI RELA TING TO THE ASSESSMENT YEAR 2007 - 08 . 2 . THE ASSESSEE IS OBJECTING IN DIRECTING THE AO TO DISALLOW THE SHARE TRADING LOSS AMOUNTING TO RS. 5 83 944/ - THEREBY ENHANCI NG THE INCOME OF THE ASSESSEE OVER AND ABOVE THE INCOME ASSESSED BY THE AO. ALTERNATIVELY THE ASSESSEE HAS TAKEN A GROUND THAT LEARNED CIT(A) ERRED IN DIRECTING THE AO TO TREAT THE AMOUNT OF EXPENDITURE INCURRED BY THE ASSESSEE ON PURCHASE OF SHARE RS.5 00 000/ - AS SPECULATION LOSS IN TERMS OF PROVISIONS OF EXPLANATION TO SECTION 73 OF THE ACT. ITA NO. 4211 /20 1 2 2 3 . THE ASSESSEE COMPANY IS ENGAGED IN BUSINESS OF FINANCE AND INVESTMENT INSECURITIES IN OWN ACCOUNT. RETURN WAS FILED DECLARING NIL INCOME. DURING THE ASSESSMENT P ROCEEDING THE AO NOTICED THAT THE ASSESSEE COMPANY HAD DEBITED A SUM OF RS. 5 00 000/ - ON ACCOUNT OF ANNUAL LISTING FEES IN THE PROFIT AND LOSS ACCOUNT. THE AO NOTICED THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY WHICH HAS NOT BEEN LISTED ON ANY STOCK EX CHANGE TILL DATE. THEREFORE THERE WAS NO JUSTIFICATION OF ANNUAL LISTING FEES DEBITED TO THE PROFIT AND LOSS ACCOUNT. THIS FACT WAS CONFRONTED TO THE ASSESSEE. IN REPLY IT WAS SUBMITTED THAT IN FACT THE ASSESSEE INCURRED CERTAIN EXPENSES WHICH WAS PAID TO M/S JOINDRE CAPITAL SERVICES LIMITED HOWEVER THE SUPPORTING DETAILS COULD NOT BE FILED. THE AO THEREFORE DISALLOWED THE AMOUNT OF RS.5 LAKHS. THE AO DISALLOWED A SUM OF RS.19 250/ - UNDER SECTION 14A OF THE ACT. 4. BEFORE THE CIT(A) IT WAS SUBMITTE D THAT THE ASSESSEE HAS PAID A S UM OF RS. 5 LAKHS BY CHEQUE TO M/S JOINDRE CAPITAL SERVICES LIMITED A STOCK BROKER. THE ASSESSEE SUFFERED A LOSS IN THE SAID ACTIVITIES AND SUCH LOSS WAS DEBITED TO PROFIT AND LOSS ACCOUNT. THE STOCK BROKER WAS DEMANDING A SUM OF RS.86 719/ - FROM THE ASSESSEE ON ACCOUNT OF LOSSES SUFFERED IN THE SHARE TRANSACTIONS BUT THE ASSESSEE DID NOT PAY THE SAID SUM AND THEREFORE THE ASSESSEE IS NOT IN A POSITION TO SUBMIT THE RELEVANT DOCUMENTS. IT WAS FURTHER ARGUED THAT THE ASSE SSEE PURCHASED SHARES WORTH OF RS. 5 LAKHS WHICH WERE WRONGLY DEBITED TO THE PROFIT AND LOSS ACCOUNT. IT WAS ALSO ARGUED THAT THE ASSESSEE SUFFERED A LOSS OF RS. 5 83 944/ - ON ACCOUNT OF ASSESSEES OWN SHARE TRADING ACCOUNT. THE ITA NO. 4211 /20 1 2 3 AO DIRECTED TO SHOW CAUSE AS TO WHY SUCH LOSS SHOULD NOT BE ENHANCED BY RS. 83 944/ - . THEREAFTER WRITTEN SUBMISSION WAS FILED. AFTER CONSIDERING THE WRITTEN SUBMISSION LEARNED CIT(A) FOUND THAT WITHOUT ANY REASON THE ASSESSEE HAS DEBITED RS. 5 LAKHS AS SHARE LISTING FEES IN THE PROFIT AND LOSS ACCOUNT. SECONDLY THE ASSESSEE HAS TRIED TO EXPLAIN THAT THE ASSESSEE HAS PURCHASED SHARES WORTH OF RS. 5 LAKHS FROM M/S JOINDRE CAPITAL SERVICES LIMITED. HOWEVER NO EVIDENCE WAS FILED. ACCORDINGLY THE CIT(A) HELD THAT THE LOSS OF RS. 5 83 944/ - CLAIMED BY THE ASSESSEE IS NOT ALLOWABLE AS THIS IS ON ACCOUNT OF SEPARATE TRANSACTION. ACCORDINGLY THE AO WAS DIRECTED TO ENHANCE THE DISALLOWANCE UNDER EXPLANATION TO SECTION 273 OF THE ACT. NOW THE ASSESSEE IS IN APPEAL HERE BEFORE THE TRIBUNAL. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF SERVICE OF NOTICE. 6 . APPEAL IS DISPOSED OF AFTER HEARING LEARNED DR AND AFTER TAKING INTO CONSIDERATION THE MATERIAL ON RECORD. 7 . AFTER CONSIDERING THE ORDER OF THE AO CIT(A) AND TAKING INTO CONSID ERATION THE GROUNDS OF APPEAL I FOUND THAT THE CIT(A) WAS JUSTIFIED IN ENHANCING THE DISALLOWANCE FROM RS. 5 LAKHS TORS. 5 83 944/ - . AS PER THE ORDER OF THE AO NO DETAILS WERE FILED BEFORE THE CIT(A) NEITHER ANY JUSTIFICATION OF LOSS OR ANY SUPPORTING EVI DENCE WAS FILED. THEREFORE THE FINDING OF THE CIT(A) IN MY VIEW DOES NOT SUFFER FROM ANY INFIRMITY. ACCORDINGLY I CONFIRM THE ORDER OF CIT(A). ITA NO. 4211 /20 1 2 4 8 . IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISSED . ORDE R PRONOUNCED IN THE OPEN COURT ON THIS 24 TH DAY OF JU LY .2013 SD/ - ( ) ( R.K.GUPTA ) / JUDICIAL MEMBER MUMBAI; DATED : 24/07 / 2013 /PKM PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) MUMBAI. 4. / CIT 5. / DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER ( ASSTT. REGISTRAR) / ITAT MUMBAI