INCOME TAX OFFICER-3(4), KANPUR V. SMT. SHILPI AGARWAL, KANPUR

ITA 163/LKW/2020

AI Insights

The case involves an appeal by the revenue against the order of the Learned Commissioner of Income-tax (Appeals) - I, Kanpur, which pertained to the assessment year 2015-16. The revenue challenged the deletion of an addition of Rs. 44,44,174 by the Commissioner, arguing that the sale of shares involved was part of a dubious design to provide accommodation entry of Long Term Capital Gain. The tribunal noted that the tax dispute had been settled by the assessee under the Direct Tax Vivad se Vishwas Scheme, 2024, and consequently, the appeal was dismissed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471438 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHINAV MEHROTRA
• Assessee Lawyers: SUNIL KUMAR RAJWANSHI
• Keywords: Condonation of delay; Earning of tax free income; Penny stocks; Bogus
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.163/LKW/2020 (Assessment Year: 2015-16) ITO-3(4) 16/69, Aayakar Bhawan, Civil Lines, Kanpur-208001. v. Smt Shilpi Agarwal 7/166(1), Swaroop Nagar, Kanpur-208002. PAN:AJFPA9933Q (Appellant) (Respondent) Appellant by: Shri Abhinav Mehrotra, Adv Respondent by: Shri Sunil Kumar Rajwanshi, Addl. CIT(DR) Date of hearing: 26 03 2025 Date of pronouncement: 28 03 2025 O R D E R PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the revenue, is directed against the order of the Learned Commissioner of Income-tax (Appeals) - I, Kanpur dated 19.11.2018 pertaining to the assessment year 2015-16. The revenue has raised the following grounds of appeal: - “1. The Ld. Commissioner of Income Tax (Appeals)-I, Kanpur has erred in Law and on facts in deleting the addition of Rs. 44,.44,174/- without going into the merits of the case and ignoring the findings recorded by the assessing officer in assessment order that the sale of shares in this case is not a natural phenomenon but an arrangement of dubious design of providing accommodation entry of Long Term Capital Gain to introduce unaccounted own money as exempt income in the form of LTCG on sale of shares and the assessee being fully aware of it is also a part of this manipulation. 2. The Ld. Commissioner of Income Tax (Appeals)-l, Kanpur has erred in law and on facts without appreciating the facts that the issue involved pertains to organized scam/tax evasion activity and unique modus operandi of this embezzlement for which CBDT’s Circular No. 23 of 2019 dated 06.09.2019 and subsequent O.M. dated 16.09.2019 mandate that the appeals may be filed on merits in case of the assessee claiming bogus LTCG/STCG through Penny Stocks. 3. That the order of the Ld. Commissioner of Income tax (Appeals) is erroneous, unjust and bad in law be vacated and the order dated ITA No.163/LKW/2020 Page 2 of 3 29.12.2016 passed u/s 143(3) of I.T. Act of the Assessing Officer be resorted. 4. That the appellant craves leave to modify any of the grounds of appeal mentioned above and/or add any fresh grounds as and when it is required to do so.” 2. It is reported by the Registry that the appeal is barred by limitation for 380 day’s. The assessee has filed an application seeking condonation of delay in filing of this appeal. The application for condonation of delay is supported by an affidavit of the assessee. The Ld. Sr. Departmental Representative for Revenue did not express any objection to the delay being condoned. Therefore, we condone the delay in filing of this appeal and admit the appeal for decision of merits. 3. The Learned Authorized Representative of the assessee, at the outset, submitted that the tax dispute has been settled and Form no. 5 has been issued under the Direct Tax Vivad se Vishwas Scheme, 2024 and a copy of certificate in Form-5 is placed on record. 4. The Learned Departmental Representative has no objection for withdrawal of the appeal. 5. In the light of the aforesaid facts discussed, since the tax disputes has been settled by the assessee’s for A.Y. 2015-16, the aforesaid captioned departmental appeal will not survive and therefore same is hereby as dismissed. 6. In the result, the appeal of the revenue is dismissed. Order pronounced in the open Court on 28/03/2025. Sd/- Sd/- [ANADEE NATH MISSHRA] [KUL BHARAT] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 28/03/2025 Vijay Pal Singh, (Sr. PS) ITA No.163/LKW/2020 Page 3 of 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard file By order //True Copy// Assistant Registrar "