1992 (6) TMI 49 - AT - Income Tax

Summary

Issues: Delay in Appeal Presentation, Disallowance of Short-term Capital Loss, Validity of Loss Claim, Tax Planning Allegations

Delay in Appeal Presentation:
The judgment addresses a delay of 5 days in presenting the appeal, which the ITO explained in a covering letter requesting condonation of the delay. The delay was condoned, and the appeal was disposed of on merits.

Disallowance of Short-term Capital Loss:
The appeal concerns the income-tax assessment of an assessee for the assessment year 1986-87, where the ITO disallowed a claimed short-term capital loss on the sale of shares. The CIT(A) disagreed with the ITO, allowing the loss of Rs. 70,000. The Revenue objected to this decision, leading to the present appeal.

Validity of Loss Claim:
The judgment analyzes the arguments presented by the Revenue, contending that the loss claim was to neutralize other income and was a tax planning strategy. The Revenue relied on specific cases and the ITO's remarks about the share-broker not being produced. However, the tribunal found the loss to be genuine based on the evidence provided by the assessee, including share purchase details, payment receipts, and market quotations.

Tax Planning Allegations:
The Revenue alleged that the assessee used the short-term capital loss claim as a tax planning device. However, the tribunal found no evidence to support this claim and rejected the Revenue's contentions. The tribunal upheld the CIT(A)'s decision to allow the loss claim of Rs. 70,000.

The tribunal dismissed the appeal, confirming the decision to allow the short-term capital loss claimed by the assessee based on the evidence presented and rejecting the Revenue's allegations of tax planning.