ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4(2), KOLKATA, AAYAKAR BHAWAN POORVA V. SUCCESS TOURS AND TRAVELS PRIVATE LIMITED, KOLKATA

MA 36/KOL/2025

AI Insights

The case involves the Assistant Commissioner of Income Tax, Central Circle-4(2), Kolkata as the applicant and Success Tour And Travels Pvt. Ltd. as the respondent. The Revenue challenged the order of the CIT(Appeals) which had deleted an addition of Rs.29,87,950 for fictitious losses claimed by the respondent in trading futures and options. Initially, the Tribunal dismissed the Revenue's appeal due to the low tax effect, adhering to the CBDT's Circular No.9/2024. However, upon the Revenue's Miscellaneous Application citing the exceptional clause of the Circular, the Tribunal recalled its earlier order and restored the appeal for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790826 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-12-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 19-03-2025
• Laws Referred To: CBDT Circular No.9/2024, CBDT Circular No.5 of 2024
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Accommodation entries; Transactions in derivatives; Futures and options

Judgement Text

" M.A. No. 36/KOL/2025 (A.Y. 2016-2017) (in ITA No. 2055/KOL/2024) Success Tour And Travels Pvt. Ltd. 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH, KOLKATA Before Shri Sonjoy Sarma, Judicial Member & Shri Rakesh Mishra, Accountant Member M.A. No.36/KOL/2025 (in I.T.A. No. 2055/KOL/2024) Assessment Year: 2016-2017 Assistant Commissioner of Income Tax,......Applicant Central Circle-4(2), Kolkata -Vs.- Success Tour And Travels Pvt. Ltd.,.........Respondent 8m Ho Chi Minh Sarani, Bhowanipur, Kolkata-700071 [PAN:AALCS5655H] Appearances by: Shri S.B. Chakraborthy, Addl. Sr. D.R., appeared on behalf of the Revenue Shri Miraj D. Shah, A.R., appeared on behalf of the assessee Date of concluding the hearing : November 28, 2025 Date of pronouncing the order : December 02, 2025 O R D E R Per Shri Rakesh Mishra, Accountant Member:- The present Miscellaneous Application is directed at the instance of the Revenue pointing out an apparent error in the order of the Tribunal dated 27th November, 2024. Printed from counselvise.com M.A. No. 36/KOL/2025 (A.Y. 2016-2017) (in ITA No. 2055/KOL/2024) Success Tour And Travels Pvt. Ltd. 2 2. It is pleaded by the ld. Departmental Representative that the ld. CIT(Appeals) has deleted the addition of Rs.29,87,950/- in A.Y. 2016-17 on account of fictitious loss claimed by trading in Futures and options in equity derivative segment of BSE/NSE as part of reversal trade in illiquid options through the brokers Odyssey Securities Pvt. Ltd. without appreciating the material brought on record and facts evaluated by the ld. Assessing Officer in the assessment order. This order of the ld. CIT(Appeals) was challenged before the Tribunal by the Revenue. However, the Tribunal has dismissed the appeal on the ground that tax effect by virtue of relief given by the ld. CIT(Appeals) is less than the monetary limit of Rs.60 lakhs and, therefore, the order of the ld. CIT(Appeals) cannot be challenged before the Tribunal. 3. The Revenue has filed the present Miscellaneous Application contending therein that the Hon’ble ITAT upheld the order of the ld. CIT(Appeals) simply by virtue of low monetary tax effect as per latest CBDT’s Circular No.9/2024 dated 17.09.2024 involved in the case without going through the merit/exceptional clause involved. Its case clearly falls within the exceptional clause, i.e. cases involving organized tax evasion by way of fictitious loss booked in trading (F&O) equity derivative segment against accommodation entries vide para 3.1(h) of Circular No.5 Printed from counselvise.com M.A. No. 36/KOL/2025 (A.Y. 2016-2017) (in ITA No. 2055/KOL/2024) Success Tour And Travels Pvt. Ltd. 3 of 2024 dated 15.03.2024. The Revenue has requested for recall of the order of the Tribunal dated 27.11.2024, which has dismissed the appeal of the Revenue on account of low tax effect and to decide the appeal on merits. 4. On the other hand, the ld. A.R. stated that there is no merit in the application of the Revenue. 5. We have heard the rival contentions and also perused the material available on record. A perusal of the assessment order at page 20 itself shows that the addition was made on account of fictitious loss to the tune of Rs.29,87,950/- trading in (F&O) equity derivative segment of BSE/NSE as part of ‘reversal trade in illiquid options’ through the broker Odyssey Securities Private Limited, which was disallowed in the absence of any compliance. Even though the tax effect mentioned in Form 36 is Rs.5,67,710/-, however, as the case falls under the exception mentioned in the Circular No. 9 of 2024 dated 17th September, 2024, the order of the Tribunal dated 27.11.2024 is hereby recalled and appeal of the Revenue is restored to its original number. The Registry is directed to post the same for hearing afresh before the regular Bench in due course of time and the same is taken note of by the ld. Representatives of both the sides. Printed from counselvise.com M.A. No. 36/KOL/2025 (A.Y. 2016-2017) (in ITA No. 2055/KOL/2024) Success Tour And Travels Pvt. Ltd. 4 6. In the result, the Miscellaneous Application of the Revenue is allowed. Order pronounced in the open Court on 02nd December 2025. Sd/- Sd/- (Sonjoy Sarma) (Rakesh Mishra) Judicial Member Accountant Member Kolkata, the 02nd day of December, 2025 Copies to : (1) Assistant Commissioner of Income Tax, Central Circle-4(2), Kolkata (2) Success Tour And Travels Pvt. Ltd., 8m Ho Chi Minh Sarani, Bhowanipur, Kolkata-700071 (3) Commissioner of Income Tax (Appeals)-27, Kolkata; (4) CIT- , Kolkata; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha Printed from counselvise.com "