VASUMATHI VINOD KUMAR,, CHENNAI v. ITO, NCW - 2,, CHENNAI

ITA 2145/CHNY/2019 | 2015-2016
Pronouncement Date: 29-11-2019 | Result: Allowed

Appeal Details

RSA Number 214521714 RSA 2019
Assessee PAN ABQPV8292A
Bench Chennai
Appeal Number ITA 2145/CHNY/2019
Duration Of Justice 4 month(s) 10 day(s)
Appellant VASUMATHI VINOD KUMAR,, CHENNAI
Respondent ITO, NCW - 2,, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-11-2019
Last Hearing Date 16-10-2019
First Hearing Date 16-10-2019
Assessment Year 2015-2016
Appeal Filed On 19-07-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH CHENNAI . . . . ! # !$ BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI S. JAYARAMAN ACCOUNTANT MEMBER ./ ITA NO.2145/CHNY/2019 & '& / ASSESSMENT YEAR : 2015-16 SMT. VASUMATHI NO.12 (OLD NO.26) BALA MUDALI STREET T. NAGAR CHENNAI - 600 017. PAN : ABQPV 8292 A V. THE INCOME TAX OFFICER NON CORPORATE WARD 2(1) CHENNAI - 600 034. ()*/ APPELLANT) (+ )*/ RESPONDENT) )* - . / APPELLANT BY : SHRI D. ANAND ADVOCATE + )* - . / RESPONDENT BY : SHRI AR.V. SREENIVASAN JCIT / - 0# / DATE OF HEARING : 16.10.2019 12' - 0# / DATE OF PRONOUNCEMENT : 29.11.2019 / O R D E R PER N.R.S. GANESAN JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -2 CHENNA I DATED 24.05.2019 AND PERTAINS TO ASSESSMENT YEAR 2015-16. 2. SHRI D. ANAND THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE CLAIMED EXEMPTION UNDER SECTION 1 0(38) OF THE 2 I.T.A. NO.2145/CHNY/19 INCOME-TAX ACT 1961 (IN SHORT 'THE ACT') IN RESPEC T OF LONG TERM CAPITAL GAINS ARISING OUT OF SALE OF SHARES TO THE EXTENT OF 50 89 779/-. IN FACT ACCORDING TO THE LD. COUNSEL THE ASSESSEE INVESTED IN SHARES OF M/S GCM SECURITIES LTD. THE L D. COUNSEL FURTHER SUBMITTED THAT THE ASSESSING OFFICER MAINLY PLACED HIS RELIANCE ON THE INVESTIGATION REPORT OF DIRECTORATE OF INVESTIGATION KOLKATA. ACCORDING TO THE LD. COUNSEL A COPY OF T HE SAID INVESTIGATION REPORT WAS NOT FURNISHED TO THE ASSES SEE. THEREFORE THE LD. COUNSEL SUBMITTED THAT AN OPPORTUNITY MAY B E GIVEN TO THE ASSESSEE BY REMITTING BACK THE MATTER TO THE FILE O F THE ASSESSING OFFICER. 3. ON THE CONTRARY SHRI AR.V. SREENIVASAN THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT HE IS P LACING RELIANCE ON THE ORDERS OF THE ASSESSING OFFICER AS WELL AS T HE CIT(APPEALS). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE ASSESSEE MADE INVESTMENTS IN THE SHARES OF M/S GCM SECURITIE S LTD. FROM THE ORDER OF THE CIT(APPEALS) IT APPEARS THAT THE A SSESSEE SOLD 6000 SHARES OF M/S GCM SECURITIES LTD. AND ON SALE OF THESE 3 I.T.A. NO.2145/CHNY/19 SHARES THE ASSESSEE DISCLOSED LONG TERM CAPITAL G AINS TO THE EXTENT OF 50 89 779/-. THIS WAS DISALLOWED BY THE ASSESSING OFFICER ON THE GROUND THAT THE COMPANY IN WHICH THE ASSESSEE INVESTED IS A PENNY STOCK COMPANY. HOWEVER IT IS NOT BROUGHT ON RECORD HOW THE ASSESSEE IS INVOLVED IN PROMOTING TH E PENNY STOCK COMPANY AND HOW THE ASSESSEE INVOLVED IN INFLATING THE SHARES OF THE COMPANY. MOREOVER THE COPY OF THE INVESTIGATI ON REPORT SAID TO BE RECEIVED FROM THE INVESTIGATION WING OF THE DEPA RTMENT AT KOLKATA WAS NOT FURNISHED TO THE ASSESSEE. ON IDEN TICAL CIRCUMSTANCES THIS TRIBUNAL IN THE CASE OF KANHAIY ALAL & SONS (HUF) V. ITO IN I.T.A. NO.1849/CHNY/2018 HAS REMIT TED BACK THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR REC ONSIDERATION. IN FACT THIS TRIBUNAL HAS OBSERVED AT PARA 4 OF ITS O RDER DATED 06.02.2019 AS FOLLOWS:- 4. WE HEARD SHRI AR.V. SREENIVASAN THE LD. DEPARTMENTAL REPRESENTATIVE ALSO. ADMITTEDLY THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEES ON THE BASIS OF THE INFORMATION SAID TO B E RECEIVED FROM THE INVESTIGATION WING OF THE DEPARTMENT AT KOLKATA WITH REGARD TO INVESTMENT MAD E BY THE ASSESSEES IN THE PENNY STOCK COMPANY. IT IS NOT IN DISPUTE THAT A COPY OF THE INVESTIGATION REPORT SAID TO BE RECEIVED FROM KOLKATA WAS NOT FURNISHED TO TH E ASSESSEE. MOREOVER DETAILS OF THE ENQUIRIES SAID TO BE 4 I.T.A. NO.2145/CHNY/19 MADE BY THE ASSESSING OFFICER WERE ALSO NOT FURNISH ED TO THE ASSESSEES. IN THOSE CIRCUMSTANCES THIS TRI BUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSING OFF ICER HAS TO RECONSIDER THE ISSUE AFRESH AFTER FURNISHING THE MATERIAL RELIED UPON BY THE ASSESSING OFFICER. ACCORDINGLY THE ORDERS OF BOTH THE AUTHORITIES BEL OW ARE SET ASIDE AND THE ENTIRE ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL BRING ON RECORD THE ROLE OF THE ASSES SEES IN PROMOTING THE COMPANY AND THE RELATIONSHIP OF TH E ASSESSEES IF ANY WITH THE PROMOTERS ROLE OF THE ASSESSEES IN INFLATING THE PRICE OF SHARES ETC. T HE ASSESSING OFFICER SHALL ALSO FURNISH A COPY OF THE INVESTIGATION REPORT SAID TO BE RECEIVED FROM THE INVESTIGATION WING OF THE DEPARTMENT AT KOLKATA AND OTHER MATERIALS IF ANYTHING IN HIS POSSESSION AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WI TH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEES. 5. IN VIEW OF THE ABOVE THIS TRIBUNAL IS OF THE CO NSIDERED OPINION THAT THE MATTER NEEDS TO BE RE-EXAMINED BY THE ASSESSING OFFICER. ACCORDINGLY ORDERS OF BOTH THE AUTHORITI ES BELOW ARE SET ASIDE AND THE ISSUE RAISED BY THE ASSESSEE WITH REG ARD TO DEDUCTION UNDER SECTION 10(38) OF THE ACT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL EXA MINE THE MATTER AS DIRECTED BY THIS TRIBUNAL IN THE CASE OF KANHAIY ALAL & SONS (HUF) (SUPRA) AND THEREAFTER DECIDE THE ISSUE AFRESH IN A CCORDANCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE A SSESSEE. 5 I.T.A. NO.2145/CHNY/19 6. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 29 TH NOVEMBER 2019 AT CHENNAI. SD/- SD/- (. !) ( . . . ) (S. JAYARAMAN) (N.R.S. GANESAN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI 4 /DATED THE 29 TH NOVEMBER 2019. KRI. - +056 76'0 /COPY TO: 1. )*/ APPELLANT 2. + )*/ RESPONDENT 3. / 80 () /CIT(A)-2 CHENNAI 4. PRINCIPAL CIT-1 CHENNAI 5. 69 +0 /DR 6. :& ; /GF.