DINESH KUMAR RAMUKA,KOLKATA V. ITO, WARD-37(1), KOLKATA

ITA 1973/KOL/2024

AI Insights

The case involves an appeal by Dinesh Kumar Ramuka against the order of the National Faceless Appeal Centre, Delhi, concerning the assessment year 2015-16. The primary issue was the validity of the reopening of the assessment under sections 147 and 148 of the Income Tax Act, based on information from 'Project Falcon' which alleged non-genuine profits from stock options trading. The Tribunal examined whether the income had indeed escaped assessment and found that it had been fully disclosed in the original return, leading to the quashing of the reopening and the subsequent assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473929 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARCHANA GUPTA
• Assessee Lawyers: S.K. PRANSUKHA
• Keywords: Reopening of assessment; Bogus
• Section: 147; 148; 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C(SMC)” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM ITA No.1973/KOL/2024 (Assessment Year:2015-16) Dinesh Kumar Ramuka DA-206, Salt Lake City Sector-1, Kolkata-700064, West Bengal Vs. ITO, Ward-37(1) 3, Govt Place, Kolkata-700001 West Bengal (Appellant) (Respondent) PAN No. AHDPR8959D Assessee by : Shri S.K. Pransukha, AR Revenue by : Shri Archana Gupta, DR Date of hearing: 27.03.2025 Date of pronouncement : 01.04.2025 O R D E R This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 31.07.2024 for the AY 2015-16. 02. The only issue raised by the assessee during the course of hearing was with respect to invalid reopening of assessment u/s 147 read with section 148 of the Act and prayed that the assessment framed u/s 147 read with section 144B of the Act dated 30.03.2022 deserved to be quashed. 03. The facts in brief are that the assessee filed the return of income on 10.01.2016, declaring total income of ₹6,17,260/-, which was processed u/s 143(1) of the Act on 21.04.2016. The case of the assessee was reopened u/s 147 of the Act based on the information gathered by the department under ‘Project Falcon’ from DGIT, Mumbai. As per the information the assessee had obtained and Page | 2 ITA No.1973/Kol/2024 Dinesh Kumar Ramuka; A.Y. 2015-16 benefitted from engaging in reversal trades in lliquid stock options on Bombay Stock Exchange resulting in non-genuine/ bogus profit of ₹4,99,000/- and has also incurred commission expenses of ₹30,610/- in cash for availing non-genuine profit. 04. After hearing the rival contentions and perusing the materials available on record, including the reasons cited before us, a copy of which available at page no. 16 and 17 of the paper book which state that the assessee had purchased stock option for aggregate premium value amounting to ₹12,81,000/- and sold the same for aggregate premium value of ₹17,80,000/- resulting into a profit of ₹4,99,000/- and accordingly, the income of the assessee has escaped assessment. Though the assessee did not appear before either of the authorities below i.e. the ld. AO as well as the ld. Commissioner of Income-tax (Appeals), however, considering the smallness of amount I deem it fit not to refer the matter to any of the lower authorities as it would involve unnecessary wastage of time and manpower of the department. This being an open and shut case and is being adjudicated at this forum itself. We note from the profit and loss account that assessee has fully disclosed profit in commodity dealing of ₹4,96,401.97 in the revenue side of the profit and loss account and also in the computation of total income which is in agreement with the return filed for the instant assessment year. Therefore, the very foundation of the reopening of the assessment fails as income as noted by the ld. AO in the reasons to believe stood assessed to tax in the return itself. Accordingly, we quash the reopening of proceeding and also consequent order. The appeal of the assessee is allowed. Page | 3 ITA No.1973/Kol/2024 Dinesh Kumar Ramuka; A.Y. 2015-16 05. In the result, the appeal of the assesseeis allowed Order pronounced in the open court on 01.04.2025. Sd Sd/- (RAJESH KUMAR) (ACCOUNTANT MEMBER) Kolkata, Dated: 01.04.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "