Smt. Meena Bansal, V. Assistant Commissioner Of Income Tax,

CO 57/JAB/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1114 (ITAT-JABALPUR)
• Duration Of Justice: 5 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-05-2019
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 23-08-2013
• Court: TRIBUNAL
• Department Lawyers: V B SARGOR
• Assessee Lawyers: SUNIL NEMA ADVS
• Keywords: Bogus purchase
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE SHRI D.T. GARASIA, J.M. AND SHRI B.C.MEENA, A.M. I.T(S.S.).A.NO.65/JAB/2013 A.Y. : 2009-10 ACIT, CIRCLE SATNA VS S MT.MEENA BANSAL, MIG 3, HEDGEWAR NAGAR, REWA APPELLANT RESPONDENT PAN NO. : ADFPB1005N C.O. NO.57/JAB/2013 (ARISING OUT OF I.T(S.S.).A.NO.65/JAB/2013 A.Y. : 2009-10 S MT.MEENA BANSAL, MIG 3, HEDGEWAR NAGAR, REWA VS ACIT, CIRCLE SATNA CROSS OBJECTOR RESPONDENT -: 2: - 2 DEPARTMENT BY : SHRI V.B.SARGOR, DR ASSESSEE BY : SHRI K.P.DEWANI AND SHRI SUNIL NEMA, ADVS. DATE OF HEARING : 28 . 0 5 .201 5 DATE OF PRONOUNCEMENT : 25 . 0 6 .201 5 O R D E R PER BENCH APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FIL ED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF CIT( A)-28, MUMBAI, DATED 23.03.2013 FOR THE ASSESSMENT YEAR 20 07-08. 2. THE ONLY GROUND TAKEN BY THE REVENUE IS THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN FACTS AND IN LAW IN DELETING THE ADDITION OF RS. 28,56,083/- ON ACCOUNT OF BOGUS PURCHASE AND SALE OF SHARES OF THE COMPANY. 3. SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE DERIV ES INCOME FROM HOUSE PROPERTY, TANKER LORRY PLYING AND INCOME FROM WAREHOUSE AND OTHER SOURCES. THE ASSESSEE IS A DIRECTOR IN PRIVATE LIMITED COMPANIES, NAMELY, REWA GREEN AG ROTECH -: 3: - 3 PRIVATE LIMITED, BANPRABHA REAL ESTATE PRIVATE LIMI TED AND VEDANT VEDIKA PRIVATE LIMITED. THE INCOME OF THE TA NKER LORRY WAS ASSESSED U/S 44AE OF THE INCOME-TAX ACT, 1961. HER HUSBAND SHRI ARUN BANSAL HAD A PARTNERSHIP FIRM UND ER THE NAME AND STYLE OF BANSAL WAREHOUSE. LAND AND BUILDI NG PURCHASED BY THE BANSALS FROM M/S. KEN ELECTRICALS AND MERCHANTS INDIA, REWA. THE ASSESSEE HAS DISCLOSED T HE CAPITAL GAIN OF RS. 16,32,819/- ON ACCOUNT OF SALE OF TWO P IECES OF LAND. THE FAMILY OF THE ASSESSEE CONSISTS OF ARUN B ANSAL, MEENA BANSAL AND A DAUGHTER. BOTH THE ASSESSEE AND HER HUSBAND SHRI ARUN BANSAL ARE ASSESSED TO TAX. 4. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSEE HAS FILED THE COPY OF THE CAPITAL ACCOUNT AND BANK STAT EMENTS MAINTAINED IN UNION BANK OF INDIA, REWA AND ASSESSE E HAS FILED HIS INVESTMENT IN COMPANIES AND PARTNERSHIP. ON VERIFICATION OF THE CAPITAL ACCOUNT AND COMPUTATION OF TOTAL INCOME, THE AO FOUND THAT THE ASSESSEE HAS EARNED L ONG TERM CAPITAL GAIN ON SALE OF SHARES OF LIMITED COMPANY M /S. KHOOBSURAT LIMITED. THE SHARES OF THE COMPANY ARE S HOWN TO HAVE BEEN PURCHASED AT RS. 1,31,000/- IN FINANCIAL YEAR 2004- -: 4: - 4 05 AND SOLD THE SAME FOR RS. 28,56,083.80 PS. DURIN G THE YEAR UNDER CONSIDERATION AND LONG TERM CAPITAL GAIN HAS BEEN SHOWN AT RS. 27,25,084/- AND CLAIMED AS EXEMPT U/S 10 OF THE INCOME-TAX ACT, 1961. THE ASSESSEE HAS FILED TH E DETAILS OF STT PAYMENT. THE ASSESSEE HAS ALSO FURNISHED COPY O F LEDGER ACCOUNT OF OBE STOCKS & SECURITIES PRIVATE LIMITED. HOWEVER, ON VERIFICATION OF THE COMPANY, NONE OF THE COMPANY WAS IN THE NAME OF KHOOBSURAT LIMITED. THEREFORE, WHOLE TR ANSACTION OF SALE AND PURCHASE IS BOGUS. THEREFORE, THE AMOUN T OF RS. 28,56,083/- WAS ADDED TO THE INCOME OF THE ASSESSEE . 5. THE MATTER CARRIED TO LD. CIT(A) AND THE LD. CIT(A) DELETED THE ADDITION BY OBSERVING AS UNDER :- 9. I HAVE EXAMINED THE CONTENTIONS AND SUBMISSIONS MADE BY THE ASSESSEE AND ALSO LOGIC GIVEN BY THE AO IN HIS ASSESSMENT ORDER. THE AO HAS APPARENTLY TREATED THIS AMOUNT AS UNEXPLAINED ON THE GROUND THAT THE COMPANY M/S. KHOOBSURAT LIMITED IS NOT LISTED ON THE ROC WEBSITE OR NOT LISTED IN THE STOCK EXCHANGE OR REGISTERED WITH REGISTRAR -: 5: - 5 OF COMPANY AND THEREFORE THE ENTIRE AMOUNT RECEIVED BY THE ASSESSEE IS LIABLE TO BE TAXED. HOWEVER, ON PERUSAL OF THE DETAILS IT IS QUITE CLEAR THAT THE COMPANY M/S. KHOOBSURAT LTD. IS LISTED WITH CALCUTTA STOCK EXCHANGE AND AS PER THE DETAILS DOWNLOADED FROM THE WEBSITE, THE STATUS OF THE COMPANY WAS ACTIVE AS ON 16.02.2013. THEREFORE, THE CLAIM OF THE AO THAT THIS COMPANY IS NOT LISTED IS UNJUSTIFIED. FURTHER, THE COMPANY IS ALSO REGISTERED WITH REGISTRAR OR COMPANY, KOLKATTA. AS PER THE DETAILS AVAILABLE ON ROC WEBSITE, THE COMPANY M/S. KHOOBSURAT LIMITED HAVE REGISTRATION NO.034793, PAID UP CAPITAL OF RS.13.28 CRORES, ITS ADDRESS IS SHOWN AS 1, R.N. MUKHERJEE ROAD, MEZANINE FLOOR, R.NO.12, KOLKATA, WEST BANGAL-700 001. FURTHER, THE COMPANY STATUS HAS BEEN VERY CLEARLY SHOWN AS ACTIVE, THE DATE OF LAST AGM (ANNUAL GENERAL MEETING) HAS BEEN -: 6: - 6 SHOWN AS 29.09.2012, DATE OF LAST BALANCE SHEET HAS BEEN SHOWN AS 31.03.2012 AND IT IS VERY CLEARLY MENTIONED THAT IT IS A LISTED COMPANY. ACCORDINGLY, THE CLAIM OF THE AO THAT THIS COMPANY IS NOT REGISTERED WITH REGISTRAR OF COMPANY IS FAR FROM TRUTH. COMING TO THE TRANSACTION OF SHARES AND SALE OF SHARES, IT IS IMPORTANT TO MENTION OVER HERE THAT THE COMPANY PURCHASED THE SHARES DURING FY 2004-05 FOR A SUM OF RS.1,31,000/- AND ALL ALONG THE SHARES WERE WITH THE ASSESSEE FOR LAST SO MANY YEARS. THESE SHARES HAS BEEN SOLD DURING THE FY 2008-09, AFTER A GAP OF ABOUT 4 YEARS FOR A TOTAL CONSIDERATION OF RS.28,56,083/-. THE ASSESSEE HAD SUBMITTED COMPLETE DETAILS IN THIS REGARD BEFORE THE AO INCLUDING CONTRACT NOTES OF ASHISH STOCK BROKING PVT. LTD., CERTIFICATE OF CALCUTTA STOCK EXCHANGE REGARDING PAYMENT OF SECURITY TRANSACTION -: 7: - 7 TAX AND RECEIPT OF SALE CONSIDERATION THROUGH CHEQUE. ALL THESE DETAILS FILLED BEFORE ME ALSO AND I HAVE PERUSED THESE DETAILS AND FIND NO INFIRMITY WHAT SO EVER. SINCE THE SALE OF SHARES HAS HAPPENED THROUGH STOCK EXCHANGE AND SL1 IS PAID ON SUCH SALE AND SALE CONSIDERATION HAS COME TO THE ASSESSEE THROUGH CHEQUE, THE GENUINENESS OF SUCH TRANSACTION SHOULD NOT BE DOUBTED BY THE AO, SPECIALLY WHEN THE ASSESSEE HELD THE SHARES FOR A PERIOD OF OVER 4 YEARS. 10. SINCE, THE ABOVE SALE TRANSACTION OF SHARES AMOUNT TO LONG TERM CAPITAL GAIN, THE SAME IS EXEMPT FROM TAX U/S.10(38) OF THE ACT. ACCORDINGLY, THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 28,56,083/-MADE IN THE ASSESSMENT ORDER. -: 8: - 8 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE LD. CIT(A) HAS HELD THAT M/S. KHO OBSOORAT LIMITED IS LISTED IN KOLKATA STOCK EXCHANGE AS PER DETAILS DOWNLOADED FROM WEB SITE. THE LD. CIT(A) HELD THAT THE COMPANY IS REGISTERED WITH THE REGISTRAR OF COMPANI ES AND HE HAS HELD THAT REGISTRATION NUMBER IS 034793. THE LD . CIT(A) HAS HELD THAT THE COMPANY WAS ACTIVE. THEREFORE, TH E LD. CIT(A) HAS HELD THAT TRANSACTION WITH THIS COMPANY IS GENU INE ONE. 7. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. D.R. COULD NOT BRING ANY CONTRARY MATERIAL AGAINST THE FINDING OF THE LD. CIT(A). THEREFORE, WE HAVE NO ALTERNATIV E BUT TO ENDORSE THE ACTION OF THE LD. CIT(A). GROUND OF THE REVENUE FAILS. 8. CROSS OBJECTION FILED BY THE ASSESSEE IS MERELY IN SUPPORT OF THE APPEAL. THE CROSS OBJECTION IS DISMI SSED AS IT IS SUPPORTIVE. -: 9: - 9 9. IN THE RESULT THE REVENUES APPEAL IS DISMISSED AND THE CROSS OBJECTION IS ALSO DISMISSED. THIS ORDER IS PRONOUNCED IN ACCORDANCE WITH RULE 34(4) OF I.T.A.T. RULES, BY PUTTING THE COPY OF THE SAME ON NOTICE BOARD ON 25 TH JUNE, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 25 TH JUNE, 2015. CPU* 176