M/s Emm Bee Fincap Pvt. Ltd. vs The DCIT, Central Circle-1, Chandigarh

Parties Involved

Facts Summary

The case involves appeals against the order passed by the Commissioner of Income Tax (Appeals) regarding the assessment years 2007-08, 2008-09, and 2009-10. The assessee, M/s Emm Bee Fincap Pvt. Ltd., had claimed a long-term capital loss of Rs. 1,35,00,000/- from the sale of unquoted shares, which was disallowed by the Assessing Officer. The assessee had not provided any evidence to support the claim of the sale of unquoted shares, leading to the disallowance of the claimed capital loss. The matter was set aside by the ITAT and restored to the Assessing Officer to decide afresh in light of a circular issued by the CBDT. However, the assessee failed to produce any evidence before the Assessing Officer, leading to the confirmation of the disallowance by the Commissioner of Income Tax (Appeals).…

Legal Issues

• 1. Disallowance of claim of Long Term Capital Loss on sale of unquoted shares
• 2. Not allowing carry forward of losses

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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