FALCON BROKERAGE P. LTD, v. DCIT RG 4(1),

MA 252/MUM/2011 | 2002-2003
Pronouncement Date: 23-09-2011 | Result: Allowed

Appeal Details

RSA Number 25219924 RSA 2011
Assessee PAN AAACF2220J
Bench Mumbai
Appeal Number MA 252/MUM/2011
Duration Of Justice 4 month(s) 24 day(s)
Appellant FALCON BROKERAGE P. LTD,
Respondent DCIT RG 4(1),
Appeal Type Miscellaneous Application
Pronouncement Date 23-09-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 23-09-2011
Assessment Year 2002-2003
Appeal Filed On 29-04-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI B BENCH BEFORE SHRI N.V.VASUDEVAN JUDICIAL MEMBER & SHRI T.R.SOOD ACCOUNTANT MEMBER SR.NO. M.A.NO. ARISING OUT OF I.T.A.NO. A.Y. 1 252/M/2011 495/M/2006 2002-03 2 253/M/2011 3328/M/2007 2003-04 3 254/M/2011 3329/M/2007 2004-05 4 255/M/2011 6247/M/2008 2005-06 FALCON BROKERAGE P.LTD. 1001 STOCK EXCHANGE PLAZA DALAL STREET MUMBAI. PAN:AAACF 2220 J VS. DY. COMMISSIONER OF I.T. RANGE 4(1) MUMBAI. (APPLICANT) (RESPONDENT) APPLICANT BY : S/SHRI VIPUL B. JOSHI & SAMEER DALAL. RESPONDENT BY : SHRI S. BOSE. DATE OF HEARING: 16-09-2011 DATE OF PRONOUNCEMENT: O R D E R PER T.R.SOOD AM: THROUGH THESE MISCELLANEOUS PETITIONS ASSESSEE HAS SOUGHT RECTIFICATION OF THE CONSOLIDATED ORDER OF THE TRIB UNAL IN I.T.NOS. 495/M/06 3328/M/2007 3329/M/07 AND 6247/M/2008 FOR THE A.YRS. 2002-03 TO 2005-06. 2. THE LD. COUNSEL FOR THE ASSESSEE REFERRED TO PAR A-13 OF THE ORDER OF THE TRIBUNAL AND POINTED OUT THAT IN A.Y 2 002-03 ASSESSEE HAD RAISED IN THE FIRST GROUND THE ISSUE REGARDING VARI OUS LOSSES WHICH HAVE BEEN HELD TO BE IN THE NATURE OF SPECULATIVE LOSSES IN VIEW OF THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CA SE OF CIT VS. MA NOS.252 T0 255 OF 2011 2 LOKMAT NEWS PAPERS PVT. LTD.[22 ITR 43] AND PRASAD AGENCY PVT LTD. VS. ITO IN I.T.NO.19 OF 2009. HE POINTED OUT THAT IN FACT DURING THE COURSE OF HEARING A CHART WAS ALSO FURNISHED WHICH HAS GIVEN BIFURCATION OF THE AMOUNT OF LOSSES IN VARIOUS YEAR S. HE SUBMITTED THAT AS FAR AS THE ISSUES REGARDING VALUATION LOSS AND S HARE TRADING LOSS AND SPECULATION LOSS ARE CONCERNED NO DOUBT THESE ISS UES ARE COVERED AGAINST THE ASSESSEE. BUT AS FAR AS THE ISSUE REGAR DING LOSS FROM SHARE VANDHA LOSS IS CONCERNED THE SAME CANNOT BE IN THE NATURE OF SPECULATION LOSS AS IT WAS CONTENDED THAT LOSS HAD ARISEN ON ACCOUNT OF BAD DELIVERIES ETC. ON ACCOUNT OF CLIENTS. HOWEVER WHILE ADJUDICATING THE GROUND IT SEEMS ALL KINDS OF LOSSES HAVE BEEN T REATED ON THE SAME FOOTING AND AN ERROR HAS CREPT INTO THE ORDER OF TH E TRIBUNAL WHICH MAY BE RECTIFIED. 3. ON THE OTHER HAND LD. DR SUPPORTED THE ORDER O F THE TRIBUNAL. 4. AFTER CONSIDERING THE SUBMISSIONS WE FIND THAT A CHART SHOWING VARIOUS CATEGORIES OF LOSSES WAS FILED DURING THE C OURSE OF HEARING WHICH IS AS UNDER: DETAILS OF LOSSES IN DISPUTE SR.NO. ASSESSMENT YEAR VALUATION LOSS SHARE TRADING GAIN/(LOSS) SPECULATION GAIN/(LOSS) SHARE VANDHA LOSS 1 2001-02 (47 03 128) (72 06 835) (1 52 70 459) (12 97 934) 2 2002-03 (7 88 705) -------- (46 97 296) (53 084) 3 2003-04 (71 055) (16 99 343) (58 07 462) (7 33 73 3) 4 2004-05 5 88 464) 26 55 183 (8 15 667) (17 58 869 ) 5 2005-06 (1 58 209) 82 48 927 --------- (88 32 857 ) FROM THE ABOVE IT IS CLEAR THAT THERE WERE FOUR TYP ES OF LOSSES BUT WHILE ADJUDICATING THE GROUND SINCE TOTAL FIGURE OF LOSS WAS PROJECTED IN MA NOS.252 T0 255 OF 2011 3 GROUND NO.1 IN EACH OF THESE YEARS THEREFORE EVEN SHARE VANDHA LOSS HAS ALSO BEEN HELD TO BE SPECULATION LOSS. BASICALL Y IT IS CLEAR THAT IN FACT THERE IS NO DISCUSSION IN RESPECT OF SHARE VA NDHA LOSS IN THE ORDER OF THE TRIBUNAL. THIS MEANS THIS ISSUE HAS REMAINED UNADJUDICATED. ACCORDINGLY WE RECALL OUR ORDER OF THE TRIBUNAL DA TED 23-12-2010 FOR A.YRS. 2002-03 TO 2005-06 IN I.T.NOS. 495/M/06 332 8/M/2007 3329/M/07 AND 6247/M/08 FOR THE PURPOSE OF ADJUDICA TION ONLY IN RESPECT OF SHARE VANDHA LOSS. THE REGISTRY IS DIREC TED TO FIX THE APPEALS AGAIN FOR HEARING ONLY IN THIS RESPECT IN THE ROUTI NE MANNER. 4. IN THE RESULT MISCELLANEOUS APPLICATIONS ARE AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 23/9/2011. SD/- SD/- (N.V.VASUDEVAN) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 23/9/2011. P/-*