ACIT CEN CIR 24, MUMBAI v. RANJEETSINGH BINDRA, MUMBAI

ITA 6254/MUM/2012 | 2005-2006
Pronouncement Date: 19-11-2014 | Result: Dismissed

Appeal Details

RSA Number 625419914 RSA 2012
Assessee PAN AERPB2424A
Bench Mumbai
Appeal Number ITA 6254/MUM/2012
Duration Of Justice 2 year(s) 1 month(s) 8 day(s)
Appellant ACIT CEN CIR 24, MUMBAI
Respondent RANJEETSINGH BINDRA, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 19-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 19-11-2014
Date Of Final Hearing 27-10-2014
Next Hearing Date 27-10-2014
Assessment Year 2005-2006
Appeal Filed On 11-10-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA PRESIDENT AND B. R.BASKARAN (AM) . . . . ./I.T.A. NO.6254 & 6255/MUM/2012 ( / ASSESSMENT YEAR :2005-06 & 2006-07) ASSTT. COMMISSIONER OF INCOME TAX CC 21 ROOM NO.403 4 TH FLOOR AAYAKAR BHAVAN M K ROAD MUMBAI-400020 / VS. SHRI RANJEETSINGH BINDRA A-71 COZY HOME 251 PALI HILL BANDRA (W) MUMBAI-400050 ( / APPELLANT) .. ( / RESPONDENT) ./ ! ./ PAN/GIRNO.:AERPB2424A ' / REVENUE BY : SHRI MANJUNATH SWAMY # ' /ASSESSEE BY : NONE $ % # & ' / DATE OF HEARING : 27.10.2014 ()*+ # & ' /DATE OF PRONOUNCEMENT : 19.11.2014 / O R D E R PER B R BASKARAN ACCOUNTANT MEMBER: THE APPEALS FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDERS PASSED BY LD CIT(A)-39 MUMBAI AND THEY RELATE TO THE ASSESSM ENT YEARS 2005-06 AND 2006-07. THE LONG TERM CAPITAL GAIN ASSESSED AS BU SINESS INCOME IN BOTH THE YEARS HAVING BEEN DELETED BY LD CIT(A) THE REVENU E IS IN APPEAL BEFORE US. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AND HENC E WE PROCEED TO DISPOSE OF THE APPEAL EX-PARTE WITHOUT THE PRESENC E OF THE ASSESSEE. 3. WE HAVE HEARD LD D.R AND PERUSED THE RECORD. TH E FACTS RELATING TO THE ISSUE ARE THAT THE ASSESSEE HAD PURCHASED 45000 SHA RES OF M/S RAMAKRISHNA FINCAP LTD ON 25.7.2003 IN AN OFF MARKET TRANSACTIO N. EARLIER THE ASSESSEE HAD SOLD SHARES OF LIC HOUSING FINANCE AND SBI ON 25.6. 2003 AND EARNED SHORT TERM ITA NOS.6254 & 6255/MUM/2012 2 CAPITAL GAIN OF RS.1 12 430/- AND THE SAID PROCEEDS WERE UTILIZED TO PURCHASE THE SHARES OF M/S RAMAKRISHNA FINCAP LTD. THE ASSESSEE DEMATED THE SHARES ON 2.9.2004. SUBSEQUENTLY THE ASSESSEE SOLD 12 000 SH ARES IN THE YEAR RELEVANT TO ASST. YEAR 2005-06 AND THE BALANCE QUANTITY OF SHAR ES WERE SOLD IN THE YEAR RELEVANT TO AY 2006-07. THUS THE ASSESSEE EARNED LONG TERM CAPITAL GAIN OF RS.15 42 630/- AND RS.60 24 551/- RESPECTIVELY IN A Y 2005-06 AND 2006-07. THE ASSESSEE CLAIMED THE SAME AS EXEMPT IN BOTH THE YEA RS UNDER CONSIDERATION. THE SHARES OF M/S RAMAKRISHNA FINCAP LTD HAD BEEN D ESIGNATED AS PENNY STOCK AND ITS SHARES PRICES ALSO WENT UP AT ASTRON OMICALLY HIGH LEVEL. HENCE THE AO DISBELIEVED THE SHARE TRANSACTIONS AND ASSESSED THE LONG TERM CAPITAL GAIN AS BUSINESS INCOME OF THE ASSESSEE IN BOTH THE YEAR S. THE LD CIT(A) HOWEVER HELD THAT THE GAIN ARISING ON SALE OF SHARES OF M/S RAMAKRISHNA FINCAP LTD SHOULD BE ASSESSED AS LONG TERM CAPITAL GAIN ONLY A ND ACCORDINGLY DELETED THE ADDITION MADE BY THE AO. 4. ON A PERUSAL OF THE ORDER PASSED BY LD CIT(A) WE NOTICE THAT THE ASSESSEE HAS PROVED THE SOURCES FOR THE PURCHASE OF SHARES OF M/S RAMAKRISHNA FINCAP LTD AND ALSO FURNISHED BROKER BILL AND CONTR ACT NOTE IN SUPPORT OF THE SAME. THE BROKERS HAVE ALSO CONFIRMED THE FACT OF P URCHASE. SINCE IT WAS AN OFF MARKET TRANSACTION THE PURCHASES WERE NOT AVAILABL E WITH THE STOCK EXCHANGE. THEREAFTER THE ASSESSEE HAS DEMATED THE SHARES IN SEP 2004 AND STARTED SELLING THE SHARES IN INSTALLMENTS FROM 4.11. 2004 TO 25.4.2005. ALL THE SALE HAVE BEEN CARRIED THROUGH STOCK EXCHANGE. THE LD CIT(A) HAVE ALSO NOTICED THAT THE PURCHASE OF SHARES HAVE BEEN DULY ACCOUNTED FOR IN THE BALANCE SHEET FILED ALONG WITH THE RETURN OF INCOME PERTAINING TO ASSES SMENT YEAR 2004-05 ON 1.11.2004. THE SALE TRANSACTIONS HAVE ALSO BEEN AC COUNTED FOR IN THE BOOKS. THE ASSESSEE HAS POINTED OUT THAT THE SHARE PRICE OF THE ABOVE SAID COMPANY HAS GONE UP FURTHER AFTER ITS SALE BY THE ASSESSEE. UNDER THESE SET OF FACTS THE LD CIT(A) HELD THAT THE ASSESSING OFFICER HAS MEREL Y DISBELIEVED THE EVIDENCES FURNISHED BY THE ASSESSEE ONLY ON SURMISES AND SUS PICION. ACCORDINGLY HE ALLOWED THE APPEAL OF THE ASSESSEE IN RESPECT OF TH IS GROUND. 5. DURING THE COURSE OF HEARING BEFORE US THE LD D.R COULD NOT PRODUCE ANY MATERIAL TO CONTRADICT THE FINDINGS GIVEN BY LD CIT (A). EVEN THOUGH THE LD D.R ITA NOS.6254 & 6255/MUM/2012 3 SUBMITTED THAT THE LD CIT(A) HAS ACCEPTED ADDITIONA L EVIDENCES WE NOTICE THAT THE FIRST APPELLATE AUTHORITY HAS CONFRONTED THE SA ME WITH THE AO BY CALLING FOR A REMAND REPORT. LATER THE LD CIT(A) HAS DECIDED T HE ISSUE IN BOTH THE YEARS IN FAVOUR OF THE ASSESSEE BY EXAMINING THE DOCUMENTS F ILED BY THE ASSESSEE. UNDER THESE SET OF FACTS WE DO NOT FIND ANY INFIRM ITY IN THE VIEW TAKEN BY LD CIT(A). ACCORDINGLY WE UPHOLD HIS ORDERS IN BOTH THE YEARS. 6. IN THE RESULT BOTH THE APPEALS FURNISHED BY THE REVENUE ARE DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 19TH NOV 2014 . ()*+ $ -. / 0 19TH NOV 2014 ) # 1% 2 SD SD ( . . / H.L. KARWA) ( . . / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER - $ % MUMBAI: 19TH NOV 2014. . 4 . ./ SRL SR. PS !'#$ %$' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. $ 5& ( ) / THE CIT(A)- CONCERNED 4. $ 5& / CIT CONCERNED 5. 6. 67 1 4&489 ' 89 + - $ % / DR ITAT MUMBAI CONCERNED 1 : % / GUARD FILE. ; $ / BY ORDER TRUE COPY < (ASSTT. REGISTRAR) ' 89 + - $ % /ITAT MUMBAI