Income Tax Appellate Tribunal - Mumbai
Smt. Priti Akhilesh Mehta, Mumbai vs Dy Cit Circle- 29(2), Mumbai on 21 February, 2020
IN THE INCOME TAX APPELLATE TRIBUNAL "C" BENCH, MUMBAI
BEFORE HON'BLE SHRI VIKAS AWASTHY, JM AND
SHRI S. RIFAUR RAHMAN, AM
SA Nos. 97/Mum/2020
(Arising out of ITA No. 462/Mum/2020 )
(Assessment Year : 2014-15)
Priti Akhilesh Mehta ITO Ward 26(2)(7), Mumbai
A-162, Vikash Paradise Tower-3, बनाम/
LBS Marg, Mulund (W), Vs.
Mumbai-400 080
स्थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. ALAPM5609E
(अपीलाथी /Appellant) : (प्रत्यथी / Respondent)
अपीलाथी की ओर से / Appellant by : Shri Rakesh Joshi, AR
प्रत्यथी की ओर से/Respondent by : Shri Uojol Rajnish, DR
सनु वाई की तारीख / : 21.02.2020
Date of Hearing
घोषणा की तारीख /
: 21.02.2020
Date of Pronouncement
आदे श / O R D E R
Per S. Rifaur Rahman, Accountant Member:
The present Stay Application (SA) is filed by the assessee arising out of I.T.A. No. 462/Mum/2020 for the assessment year 2014-15 in respect of stay on the recovery of the outstanding demand.
Page 1 of 4
SA Nos. 97/Mum/2020 Priti Akhilesh Mehta
2. At the outset, Ld. AR submitted that the assessment was completed U/s 143(3) r.w.s. 147 of the Act. The assessment was reopened after recording reasons that assessee is one of the beneficiary of dealing in shares of Moryo Ind. Ltd and claimed long term capital gain on sale of such shares. However, the fact of the case is that assesse has converted investment in these shares into stock in trade and as per provisions of section 45(2) of the Act booked notional capital gain on such conversion. Part of such shares held as stock in trade were sold during the year hence profit on such sale party offered as capital gain and paid taxes thereon U/s 112 of the Act and part of which offered as business income. He further submitted that for unsold stock national capital gain as per section 45(2) credited to capital account. Therefore, there is no claim of exemption U/s 10(38) of the Act. However, Ld AO did not appreciate facts of the case and added entire income U/s 68 of the Act including notional capital gain. In addition to this, Ld AO also disallowed interest paid and other expenses claimed against business income and Ld. CIT(A) has also upheld the order of AO ex-parte without granting opportunity of being heard. He further submitted that AO raised total demand of Rs. 36,49,940/- (including interest of Rs. 9,62,564/-) after giving credit of prepaid taxes of Rs. 22,56,916/- and the assessee has paid a sum of Rs. 7,47,491/- and pending tax demand of Rs. 29,02,449/-.
3. On the other hand, Ld DR appearing for the revenue relied on the orders passed by revenue authorities and opposed the plea of the assessee for stay on the recovery of the outstanding demand.
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SA Nos. 97/Mum/2020 Priti Akhilesh Mehta
4. Considered the rival submissions and material placed on record, the bench felt that the issue involved in this case, can be disposed off on the basis of merit, we direct as under:-
(i) That the appeal of the assessee pending with the tribunal be taken up for an out of turn hearing on 03.03.2020 before the regular Bench and
(ii) That assessee's plea for stay of the recovery of outstanding demand is hereby dismissed.
5. Since the date of hearing has already been fixed in the presence of the parties, hence service of formal notice is dispensed with.
6. Order pronounced in the open court on 21.02.2020 immediately after completion of hearing.
Sd/- Sd/-
(Vikas Awasthy) (S. Rifaur Rahman)
न्याययक सदस्य / Judicial Member लेखा सदस्य / Accountant Member
मंब
ु ई Mumbai; ददनांक Dated : 21/02/2020
Sr.PS Dhananjay
आदे श की प्रतिलिपि अग्रेपिि/Copy of the Order forwarded to :
1. अपीलाथी / The Appellant
2. प्रत्यथी / The Respondent
3. आयकर आयुक्त(अपील) / The CIT(A)
4. आयकर आयुक्त / CIT - concerned Page 3 of 4 SA Nos. 97/Mum/2020 Priti Akhilesh Mehta
5. ववभागीय प्रयतयनधि, आयकर अपीलीय अधिकरण, मंब ु ई / DR, ITAT, Mumbai
6. गार्ड फाईल / Guard File आदे शानस ु ार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीिीय अधिकरण, मुंबई / ITAT, Mumbai Page 4 of 4