CIT v Pruthvi Brokers & Shareholders (P.) Ltd. [2012] 23 taxmann.com 23 (Bombay HC) Facts of the case: Assessee had claimed in his return for A.Y. 2004-05 a deduction under section 43B in respect of payment of SEBI fees of Rs. 10,00,000 each paid on 16th July, 2004 and 29th April, 2004 i.e. during the financial year 2004-05. Thus, admittedly, for the relevant assessment year viz. 2004-05, the assessee was not entitled to a deduction in respect of the said payments. In the course of assessment proceedings before the AO, the assessee stated that the claim was made inadvertently. The respondent, however, made a claim of Rs. 40,00,000 under section 43B in respect of payment of the SEBI fees on 9th May, 2003 i.e. in the assessment year 2004-05. The AO rejected the claim on the ground that he had no authority to allow any relief or deduction which had not been claimed in the return. CIT(A) and ITAT ruled in assessee’s favour and allowed the deduction. Hence, the instant Departmental appeal.
Daily Archives: July 5, 2012
Jafferali K. Rattonsey v DCIT [IT APPEAL NO. 5068 (MUM.) OF 2009 dated 25.1.2012] (Mumbai ITAT) Background: The assessee had claimed exemption for Long Term Capital Gain of Rs. 4,94,51,910/- on account of sale of shares u/s.10(38) of the I.T. Act. During the course of assessment, the assessee furnished demat account, brokers’ note and bank account statements to substantiate his claim u/s 10(38). AO noted that shares are dematerialized immediately before the date of sale i.e. either on the same date of sale or 2 to 3 days before the sale of shares. The AO contended that the date of purchase can be considered only as date of dematerialization in the Demat Account with Techno Shares and Stocks Ltd. Price of the shares on the date of dematerialization would then become the purchase price of the assessee. The sale was held to be short term capital gains. CIT(A) upheld the decision of AO in this context