| Case ID |
2b90384f-2ab9-48f5-8f92-878d14d64912 |
| Body |
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| Case Number |
IT APPEAL No. 87 OF 2006 |
| Decision Date |
Oct 03, 2008 |
| Hearing Date |
|
| Decision |
The Tribunal upheld the findings and order of the Commissioner (Appeals) regarding the share transactions of the assessee. It was determined that the Assessing Officer's disallowance of the entire loss claimed was unjustified as the assessee provided ample documentary evidence supporting the legitimacy of the transactions. The core issue revolved around 8,100 shares out of a total of 2,30,300 shares traded, where the Assessing Officer had doubts. The authorities found that the transactions were genuine and not a colourable device aimed at tax evasion. The revenue's appeal was dismissed, affirming the decision made by the lower authorities. |
| Summary |
This case revolves around the Income Tax Act, 1961, specifically addressing the legitimacy of business loss deductions claimed by Praveen Electronics Ltd. for the assessment year 1996-97. The Assessing Officer disallowed a significant portion of the claimed loss, asserting that the transactions were a colourable device to evade taxes. However, the Commissioner (Appeals) found that the assessee provided comprehensive evidence, including contract notes, bank details, and proof of physical possession of shares, which countered the Assessing Officer's assertions. The Tribunal upheld the Commissioner’s ruling, emphasizing that the core issue was factual in nature and reaffirmed the legitimacy of the transactions. This case highlights the critical balance between tax compliance and legitimate business activities, emphasizing the importance of thorough documentation and evidence in tax-related disputes. |
| Court |
Delhi High Court
|
| Entities Involved |
Not available
|
| Judges |
Badar Durrez Ahmed,
Rajiv Shakdher
|
| Lawyers |
R.D. Jolly,
Salil Aggarwal,
Prakash Kumar
|
| Petitioners |
Commissioner of Income Tax, Delhi IV
|
| Respondents |
Praveen Electronics Ltd.
|
| Citations |
2009 SLD 2246,
(2009) 312 ITR 170,
(2009) 178 TAXMAN 8
|
| Other Citations |
Mcdowell v. CTO [1985] 154 ITR 148,
Bhagat Construction Co. (P.) Ltd. v. CIT [2001] 250 ITR 291,
Union of India v. Azadi Bachao Andolan [2003] 263 ITR 706
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
28(i),
260A
|