Sukhram Herenj, Kolkata v. ACIT, CIR-17, KOLKATA, Kolkata

ITA 1534/KOL/2015 | 2008-2009
Pronouncement Date: 28-09-2016

Appeal Details

RSA Number 153423514 RSA 2015
Assessee PAN AAMPH4045C
Bench Kolkata
Appeal Number ITA 1534/KOL/2015
Duration Of Justice 8 month(s) 27 day(s)
Appellant Sukhram Herenj, Kolkata
Respondent ACIT, CIR-17, KOLKATA, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2016
Appeal Filed By Assessee
Bench Allotted SMC
Tribunal Order Date 28-09-2016
Assessment Year 2008-2009
Appeal Filed On 31-12-2015
Judgment Text
I.T.A. NO. 1534/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA B(SMC) BENCH KOLKATA BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER I.T.A. NO.1534/KOL/2015 ASSESSMENT YEAR: 2008-2009 SUKHRAM HERENJ .................................... ......................................APPELLANT 21 HOCHIMIN NAGAR MAIN ROAD 16 FEET MAIN ROAD SAKUNTALA PARK KOLKATA-700 061 [PAN: AAMPH 4045 C] -VS.- ASSISTANT COMMISSIONER OF INCOME TAX .............. ......................RESPONDENT CIRCLE-17 KOLKATA BAMBOO VILLA KOLKATA APPEARANCES BY: MS. PADMASREE SARKAR FCA FOR THE ASSESSEE SHRI UDAY KUMAR SARDAR JCIT D.R. FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : JULY 26 2016 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 28 2016 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-19 KOLKATA DA TED 06.11.2015 WHEREBY HE UPHELD THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 154. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L WHO WAS EMPLOYED WITH INDIAN OIL CORPORATION DURING THE YEA R UNDER CONSIDERATION. FOR THE SAID YEAR THE RETURN OF INC OME WAS FILED BY THE ASSESSEE ON 31.07.2008 DECLARING TOTAL INCOME OF RS .9 50 798/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS NOTICE D BY THE ASSESSING OFFICER THAT THE ASSESSEE HAS ENTERED INTO SUBSTANT IAL TRANSACTIONS IN SALE AND PURCHASE OF SHARES. IN THE RETURN OF INCOME TH E ASSESSEE HOWEVER HAD NOT OFFERED ANY INCOME FROM CAPITAL GAIN. IN TH IS REGARD THE I.T.A. NO. 1534/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 2 OF 4 EXPLANATION OFFERED BY THE ASSESSEE BEFORE THE ASSE SSING OFFICER WAS THAT ALL THE SHARES WERE SOLD BY HIM AFTER HOLDING THE S AME FOR MORE THAN ONE YEAR AND SINCE THE LONG-TERM CAPITAL GAIN ARISING F ROM SUCH SALE WAS NOT CHARGEABLE TO TAX THE SAME WAS NOT DISCLOSED IN TH E RETURN OF INCOME. THE ASSESSEE HOWEVER COULD NOT SUPPORT AND SUBSTANTIA TE THIS EXPLANATION BY FOLLOWING THE RELEVANT DETAILS OF PURCHASE AND S ALE OF SHARES DESPITE SUFFICIENT OPPORTUNITY AFFORDED BY THE ASSESSING OF FICER. THE ASSESSING OFFICER THEREFORE DID NOT ACCEPT THE EXPLANATION OF THE ASSESSEE AND PROCEEDED TO ESTIMATE THE INCOME OF THE ASSESSEE FR OM PURCHASE AND SALE OF SHARES AT RS.10 00 000/- AND BROUGHT THE SAME TO TAX IN THE HANDS OF THE ASSESSEE UNDER THE HEAD LONG-TERM CAPITAL GAIN IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 31.12.2010. THEREAFTER THE ASSESSEE MOVED AN APPLICATION UNDER SECTION 154 SEEKING RECTIFICATION OF THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) ON THE GROUND THAT ALL THE SHARES SOLD DURIN G THE YEAR UNDER CONSIDERATION HAVING BEEN HELD BY HIM FOR MORE THAN ONE YEAR THE LONG- TERM CAPITAL GAIN ARISING FROM SUCH SALE WAS NOT CH ARGEABLE TO TAX. HOWEVER KEEPING IN VIEW THAT THE RELEVANT DETAILS AND EVIDENCE TO SUPPORT AND SUBSTANTIATE THIS CLAIM WERE NOT BROUGH T ON RECORD BY THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDING S UNDER SECTION 143(3) THE ASSESSING OFFICER HELD THAT THERE WAS N O MISTAKE APPARENT FROM RECORD IN HIS ORDER PASSED UNDER SECTION 143(3 ) ON THIS ISSUE AND ACCORDINGLY THE APPLICATION FILED BY THE ASSESSEE UNDER SECTION 154 WAS REJECTED BY HIM. 3. ON APPEAL THE LD. CIT(APPEALS) UPHELD THE ACTIO N OF THE ASSESSING OFFICER IN REJECTING THE APPLICATION OF THE ASSESSE E UNDER SECTION 154 BY OBSERVING THAT IN THE ABSENCE OF RELEVANT DETAILS A ND DOCUMENTS PLACED ON RECORD BY THE ASSESSEE IN SUPPORT OF HIS CLAIM OF L ONG-TERM CAPITAL GAIN THERE WAS NO MISTAKE APPARENT FROM RECORD IN THE OR DER OF THE ASSESSING OFFICER PASSED UNDER SECTION 143(3) WHICH COULD BE RECTIFIED UNDER SECTION 154. AGGRIEVED BY THE ORDER OF THE LD. CIT( APPEALS) THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. I.T.A. NO. 1534/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 3 OF 4 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERV ED THAT THE CLAIM OF THE ASSESSEE FOR EXEMPTION ON ACCOUNT OF LONG-TERM CAPI TAL GAIN ARISING FROM THE SALE OF SHARES WAS NOT ACCEPTED BY THE ASSESSIN G OFFICER FOR WANT OF RELEVANT DETAILS AND DOCUMENTS AS THE ASSESSEE HAD FAILED TO PRODUCE THE SAME BEFORE THE ASSESSING OFFICER DESPITE SUFFICIEN T OPPORTUNITY AFFORDED TO HIM. THE RELEVANT DETAILS AND DOCUMENTS SUPPORTI NG THE CLAIM OF THE ASSESSEE FOR SUCH EXEMPTION THUS WERE NOT AVAILABLE ON RECORD BEFORE THE ASSESSING OFFICER WHEN THE ASSESSMENT UNDER SECTION 143(3) WAS COMPLETED AND THIS BEING THE UNDISPUTED POSITION I FIND MYSELF IN AGREEMENT WITH THE LD. CIT(APPEALS) THAT IT CANNOT BE SAID THAT THERE WAS ANY MISTAKE IN THE ORDER OF THE ASSESSING OFFICER P ASSED UNDER SECTION 143(3) IN DISALLOWING THE CLAIM OF THE ASSESSEE FOR EXEMPTION ON ACCOUNT OF LONG-TERM CAPITAL GAIN AND ESTIMATING THE INCOME OF THE ASSESSEE ON ACCOUNT OF SHORT-TERM CAPITAL GAIN AT RS.10 00 000/ -. THE IMPUGNED ORDER OF THE D. CIT(APPEALS) UPHOLDING THE ORDER PASSED B Y THE ASSESSING OFFICER UNDER SECTION 154 REJECTING THE APPLICATION OF THE ASSESSEE FOR RECTIFICATION THEREFORE IS UPHELD AND THIS APPEAL FILED BY THE ASSESSEE IS DISMISSED. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON SEPTEMBER28 2016. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA THE 28 TH DAY OF SEPTEMBER 2016 COPIES TO : (1) SUKHRAM HERENJ 21 HOCHIMIN NAGAR MAIN ROAD 16 FEET MAIN ROAD SAKUNTALA PARK KOLKATA-700 061 (2) ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-17 KOLKATA BAMBOO VILLA KOLKATA I.T.A. NO. 1534/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 4 OF 4 (3) COMMISSIONER OF INCOME TAX (APPEALS)-19 KOLKA TA; (4) COMMISSIONER OF INCOME TAX- (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES KOLKATA LAHA/SR. P.S.