The case of ITA 1072/DEL/2019 presents a contentious issue regarding the disallowance of long term capital losses claimed by All Grow Finance & Investment Pvt. Ltd. against the Deputy Commissioner of Income Tax, Circle-10(1), New Delhi for the assessment year 2003-04.
All Grow Finance & Investment Pvt. Ltd., an investment firm based in New Delhi, filed this appeal against the order of the Commissioner of Income Tax (Appeals)-34, New Delhi. The original assessment disallowed long term capital losses amounting to Rs. 75,35,065, which were claimed on the sale of shares from Escorts Limited, a transaction that allegedly took place in the assessment year 1997-98.
The company argued that the shares sold were purchased in the assessment year 1997-98 and held in a demat account, thus qualifying as long-term assets. The dispute arose over discrepancies in the documentation regarding the acquisition year and value of the shares at the time of purchase, leading to the assessing officer’s decision to disallow the losses.
The tribunal reviewed submissions from both the assessee and the Department. Despite several hearings, the appellant failed to appear, leading the tribunal to decide based on the merits presented by the Department’s representative. The tribunal agreed with the lower authority’s findings that the assessee did not adequately support the claim of long term capital loss with necessary documentation.
The tribunal upheld the decision of the Commissioner of Income Tax Appeals, confirming the disallowance of the long term capital loss. This case highlights the critical need for maintaining and presenting clear and accurate documentation to support financial claims in tax matters.
This judgment serves as a precedent for similar disputes and stresses the importance of compliance with documentary requirements in financial and tax reporting.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform