Adihemshree Financial vs. ACIT-19(1)

Parties Involved

Facts Summary

Adihemshree Financial, a partnership firm engaged in trading of shares and securities, filed its return of income reporting a loss of Rs 21,37,669/-. The Assessing Officer alleged that the assessee claimed business loss of Rs. 11,77,52,893/- in trading of scrips involved in price rigging. The assessee went in appeal before the Commissioner of Income Tax (Appeals) who allowed the appeal. The revenue then appealed to the ITAT. The ITAT dismissed the appeals, holding that the losses incurred by the assessee are in the regular course of its business and deserved to be set off against the regular business profits.…

Legal Issues

• 1. Deletion of entire disallowance of business loss claimed by the assessee.
• 2. Disallowance of losses incurred on trading of specific scrips.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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