BHIKAMCHAND BETALA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is an appeal under Section 260 A of the Income Tax Act, 1961. By this appeal, the appellant has challenged the legality and validity of the order dated 24. 1. 2003 passed by the Income Tax Appellate Tribunal, Gauhati Bench, Guwahati in Income Tax Appeal No. 118 (Gau)/99 for the assessment year 1995-96. The facts of the present appeal may be briefly stated at the very outset :

(2.) THE appellant is an assessee under the Income Tax Act, 1961 (for short the Act), assessed to tax by the Income Tax Officer, Ward 1 (5), Guwahati. The status of the assessee is that of HUF and the assessment year under consideration is 1995-96. During the assessment proceeding a claim was made by the assessee of share business loss amounting to Rs. 3,99,860/ -. On various ground mentioned in the assessment order dated 31. 3. 98, the assessing officer concluded that the transaction in shares as claimed by the assessee cannot be treated as genuine. Accordingly, the share business loss of Rs. 3,99,860/- was not allowed and the same was added back to the total income of the assessee for the said year.

(3.) THE assessee preferred an appeal before the Commissioner, Income Tax Officer (Appeals), Guwahati, questioning the addition of the aforesaid amount to its income. The appellate authority vide order dated 30. 10. 98 allowed the said appeal of the assessee by holding that the disallowance of the loss of share business amounting to Rs. 3,99,860/- was based on a wrong perception of the facts. The assessing officer was directed to allow the loss so claimed.