This case concerns the appeal filed by Vikramendra Prasad Bhalla against the decision of the CIT(A)-8, New Delhi, dated January 30, 2020. The appeal, registered under ITA No. 955/Del/2020, addresses the assessment year 2006-07 and focuses on the rejection of the claim to set off carry forward losses from speculative business against normal profits.
The main ground of appeal challenges the Assessing Officer’s decision to reject the set off of carry forward losses amounting to Rs. 54,84,520 from speculative business activities in the assessment year 2005-06 against the normal profits of 2006-07. The appellant argued that all required documents and contract notes were provided, but the AO failed to acknowledge these and based his findings on the absence of a response from the National Stock Exchange despite reminders.
The Tribunal, comprising Dr. B. R. R. Kumar, Accountant Member, and Shri Anubhav Sharma, Judicial Member, noted that the core issue revolved around the examination of contract notes which the AO allegedly ignored. The criteria for the transactions to be considered speculative were specified, including electronic execution through a broker and support by a time-stamped contract note.
The Tribunal remanded the matter to the file of the Assessing Officer to re-examine the contract notes. It was directed that if the contract notes were not on record, the assessee should be given an opportunity to present them. If these conditions were met, the speculative loss should be allowed.
The appeal was allowed for statistical purposes, emphasizing the necessity for the Assessing Officer to consider all relevant documentation provided by the taxpayer. This case underscores the importance of thorough documentation and procedural adherence in the adjudication of speculative loss claims.
Income Tax Appeal Analysis: Vikramendra Prasad Bhalla vs. ITO, Ward-22(4), New Delhi, AY 2006-07
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