Sh. Subhash Chand Verma, New Delhi v. ITO, New Delhi

CO 334/DEL/2012 | 2002-2003
Pronouncement Date: 12-11-2014 | Result: Dismissed

Appeal Details

RSA Number 33420123 RSA 2012
Assessee PAN AABHS3422B
Bench Delhi
Appeal Number CO 334/DEL/2012
Duration Of Justice 2 year(s) 1 month(s) 18 day(s)
Appellant Sh. Subhash Chand Verma, New Delhi
Respondent ITO, New Delhi
Appeal Type Cross Objection
Pronouncement Date 12-11-2014
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 12-11-2014
Date Of Final Hearing 29-10-2014
Next Hearing Date 29-10-2014
Assessment Year 2002-2003
Appeal Filed On 24-09-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G NEW DELHI) BEFORE SHRI H. S. SIDHU JUDICIAL MEMBER AND SHRI T.S. KAPOOR ACCOUNTANT MEMBER I.T.A. NO.5334 /DEL/2011 ASSESSMENT YEAR : 2002-03 ITO WARD 27(2) VS. SUBHASH CHAND VERMA NEW DELHI E-239 DOUBLE STOREY RAMESH NAGAR NEW DELHI-110 015 C.O. NO.334/DEL/2012 (ASSESSMENT YEAR 2002-03) SUBHASH CHAND VERMA VS. ITO WARD 27(2) E-239 DOUBLE STOREY NEW DELHI RAMESH NAGAR NEW DELHI-110 015 GIR / PAN:AABHS3422B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI BRR KUMAR SR. DR RESPONDENT BY : SHRI R.S. SINGHVI ADV. ORDER PER T.S. KAPOOR AM: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) DATED 30.09.2011. THE ONLY ISSUE RAISED BY THE REV ENUE IN THIS APPEAL IS THE ACTION OF LD. CIT(A) BY WHICH HE HAD DELETED AN ADD ITION OF RS.31 14 775/- MADE BY THE A.O. U/S 68 OF THE ACT. THE ASSESSEE H AS ALSO FILED CROSS OBJECTION TO THE APPEAL FILED BY THE REVENUE WHEREI N HE HAS TAKEN THE LEGAL GROUND OF NON SERVICE OF NOTICE U/S 143(2) OF THE A CT. ITA NO.5334/DEL/2011 C.O. NO.334/DEL/2012 2 2. AT THE OUTSET THE LD. A.R. WITHDREW CROSS OBJEC TION OF THE ASSESSEE AND SUBMITTED THAT HIS CASE ON MERIT WAS ALSO VERY STRONG. LD. D.R. INVITED OUR ATTENTION TO ASSESSMENT ORDER AND SUBMITTED THA T THE AMOUNT RECEIVED BY THE ASSESSEE FROM M/S. S.J. CAPITAL LTD. WAS IN FAC T AN ACCOMMODATION ENTRY AND MOREOVER THE FACT THAT THESE ENTRIES BEING ACC OMMODATION ENTRIES WAS UNEARTHED BY INVESTIGATION WING OF THE DEPARTMENT. READING FORM LD. CIT(A)S ORDER LD. D.R. SUBMITTED THAT LD. CIT(A) WITHOUT GOING INTO THE FACTS OF THE CASE HAS HELD THE TRANSACTION TO BE GE NUINE WHEREAS THE FACTS REMAIN THAT DELHI STOCK EXCHANGE WHEREIN THE ENTRIE S WERE STATED TO HAVE HAPPENED WAS ALREADY CLOSED. 3. LD. A.R. ON THE OTHER HAND SUBMITTED THAT THE A MOUNT RECEIVED BY THE ASSESSEE WAS A SALE CONSIDERATION WHICH WAS RECEIVE D BY HIM ON ACCOUNT OF SALE OF SHARES WHICH WERE PURCHASED BY HIM EARLIER AND WHICH WAS REFLECTED IN THE BALANCE SHEET OF THE ASSESSEE AND TO STRENGT HEN HIS ARGUMENT LD. A.R. TOOK US TO PAPER BOOK PAGE 87 WHERE A COPY OF BALAN CE SHEET OF THE ASSESSEE AS ON 31.03.2001 WAS PLACED. INVITING OUR ATTENTIO N TO THE INVESTMENT HEAD IN THE BALANCE SHEET LD. A.R. SUBMITTED THAT SHARE S OF M/S. WELCOME COIR LTD. ARE MENTIONED AS INVESTMENT AND THESE WERE SOL D DURING THE YEAR UNDER CONSIDERATION AGAINST WHICH THE ASSESSEE HAD RECEIV ED PAYMENT. IT WAS SUBMITTED THAT THESE SHARES WERE PURCHASED BY MAKIN G PAYMENT THROUGH CHEQUE IN THE EARLIER YEAR AND AGAINST PROPER CONTR ACT NOTE COPY OF WHICH WAS PLACED AT PAPER BOOK PAGES 23-33. 4. IN HIS REJOINDER LD. D.R. SUBMITTED THAT THE CA SES OF S J CAPITAL AND M K FINANCE PVT. LTD. WERE PENDING BEFORE VARIOUS F ORUMS AND REVENUE HAS CHALLENGED THE DECISIONS. ITA NO.5334/DEL/2011 C.O. NO.334/DEL/2012 3 5. LD. A.R. INVITED OUR ATTENTION TO PAPER BOOK PAG ES 128-130 WHERE A COPY OF HON'BLE DELHI HIGH COURT ORDER IN T HE CASE OF VISHAL HOLDINGS AND CAPITAL LTD. WAS PLACED WHEREIN UNDER SIMILAR SET OF CIRCUMSTANCES THE HON'BLE HIGH COURT HAD DECIDED I N FAVOUR OF ASSESSEE. IT WAS SUBMITTED THAT SIMILAR ENTITY MKS FINSEC PVT. LTD. WAS THERE IN THAT CASE. 6. WE HAVE HARD RIVAL PARTIES AND HAVE GONE THROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT LD. CIT(A) HAS GIVE N THE RELIEF BY OBSERVING AS UNDER: THE MAIN CONTENTION OF THE APPELLANT IS THAT THE A DDITION OF RS.31 14 775/- ALONG WITH COMMISSION OF RS.15 574/- IS ARBITRARY ILLEGAL AND BAD IN LAW. THE APPELLANT H AS SUBMITTED THAT HE HAD PURCHASED 35 000 EQUITY SHARES OF M/S. WELCOME COIR INDUSTRIES LTD. DURING A.Y.2001-02 FOR AN AMO UNT OF RS.3 12 388/-. THE APPELLANT SUBMITTED THE CONTRAC T NOTES FOR PURCHASE OF SHARES AND PROOF THAT THESE SHARES WERE QUOTED ON DELHI STOCK EXCHANGE. HE ALSO SUBMITTED THE RATE CO PY GIVING RATE OF SHARES AS ON THE DATE OF PURCHASE. THE BILL OF THE BROKER AND THE COPY OF THE BANK ACCOUNT FROM WHERE THE PAY MENT WAS MADE WAS ALSO PLACED ON RECORD. THE RETURN OF INCOM E FOR A.Y. 2001-02 ALONG WITH COMPUTATION OF INCOME PROFIT AN D LOSS ACCOUNT AND BALANCE SHEET ETC. WAS ALSO PLACED ON R ECORD EVIDENCING THE PURCHASE OF SHARES IN A.Y. 2001-02. THE DEPARTMENT ACCEPTED THIS RETURN OF INCOME. THEREAFT ER THE APPELLANT SOLD THESE 35 000 EQUITY SHARES OF M/S. W ELCOME COIR INDUSTRIES LTD. THROUGH M/S. S J CAPITAL LTD. FOR A SUM OF RS.31 14 775/- IN A.Y. 2002-03. SIMILAR DOCUMENTARY EVIDENCE IN THE FORM OF CONTRACT NOTES OF THE BROKER BILL O F THE BROKER RATE COPY OF THE SHARE CONFIRMATION OF ACCOUNT WIT H M/S. S J CAPITAL LTD. GIVING COMPLETE DETAILS OF SALE OF SHA RES AND PAYMENT MADE TO THE APPELLANT CONFIRMATION FROM TH E PRINCIPAL OFFICER DELHI STOCK EXCHANGE THAT M/S. MKM FINSEC PVT. LTD. AND M/S. S. J. CAPITAL LTD. ARE MEMBERS OF DELHI ST OCK EXCHANGE LTD. (OBTAINED BY THE A.O. U/S. 133(6) OF THE I T ACT 1961) HAVE ALL BEEN PLACED ON RECORD. I HAVE PERUSE D CAREFULLY ITA NO.5334/DEL/2011 C.O. NO.334/DEL/2012 4 THE DOCUMENTARY EVIDENCE AND THE ARGUMENTS GIVEN BY THE APPELLANT IN SUPPORT OF HIS CONTENTIONS. I HAVE ALS O GONE THROUGH THE ASSESSMENT ORDER AND THE REMAND REPORT OF THE AO. THE FACT REMAINS THAT THE DEPARTMENT HAS ACCEPTED T HE PURCHASE OF 35 000 EQUITY SHARES OF M/S. WELCOME CO IR INDUSTRIES LTD. BY THE APPELLANT IN A.Y. 2001-02. T HE APPELLANT HAS BEEN ABLE TO PROVE THE GENUINENESS OF THE TRANS ACTION BY PLACING ON RECORD THAT THE SHARE WAS LISTED ON DELH I STOCK EXCHANGE AND BY ALSO PLACED ON RECORD THE RATE COPY AS ON THAT DATE. EVEN THE AO HAS ACCEPTED THAT THE BROKERS THR OUGH WHOM PURCHASE AND SALE OF THESE SHARES WAS TRANSACTED A RE REGISTERED SHARE BROKERS WITH DELHI STOCK EXCHANGE. THEREFORE IN MY OPINION HAVING ACCEPTED THE PURCHASE OF SHAR ES IN A.Y. 2001-02 AS GENUINE THE ASSERTION OF THE AO THAT TH E SALE OF THESE SHARES IN A.Y. 2002-03 IS FICTITIOUS DOES NO T REMAIN TENABLE. IN THE LIGHT OF EVIDENCES PLACED ON RECORD BY THE APPELLANT THE ADDITIONS MADE BY THE AO AMOUNTING T O RS.31 14 775/- BEING THE SALE PRICE OF SHARES AND P RESUMED COMMISSION THEREON OF RS.15 574/- IS HEREBY DELETED . 7. FROM THE ABOVE FINDINGS OF LD. CIT(A) WE FIND T HAT HE HAS PASSED A REASONED AND SPEAKING ORDER WHEREIN HE HAS NARRATED ALL THE FACTS OF THE CASE. HE HAS HELD THAT PAYMENTS RECEIVED BY THE ASSESSEE WERE ON ACCOUNT OF SALE OF SHARES WHICH WERE SUPPORTED BY PROPER CONTRACT N OTES. WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A). IN VIEW OF T HE ABOVE THE APPEAL FILED BY THE REVENUE IS DISMISSED. 8. THE C.O. FILED BY THE ASSESSEE IS ALSO DISMISSED AS WITHDRAWN. 9. IN VIEW OF ABOVE BOTH THE APPEAL FILED BY THE R EVENUE AS WELL AS C.O. FILED BY THE ASSESSEE ARE DISMISSED. 10. ORDER PRONOUNCED ON THIS 12 TH NOV. 2014. SD./- SD./- (H. S. SIDHU ) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 12 TH NOV. 2014 ITA NO.5334/DEL/2011 C.O. NO.334/DEL/2012 5 SP COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DEL HI. TRUE COPY. BY ORDER (ITAT NEW DELHI). S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT SR. PS/PS 7 FILE SENT TO BENCH CLERK SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER