Smt. Asha Devi Mohta, Kolkata V. D.C.I.T Cir - 34,kolkata, Kolkata

ITA 1041/KOL/2013

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1378 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 20-03-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 02-05-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMARADDL CI T LD
• Assessee Lawyers: P J BHIDE FCA LD
• Keywords: Deemed dividend

Judgement Text

1 ITA NO.1041//KOL/2013 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: K OLKATA BEFORE: SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUD ICIAL MEMBER I.T.A NO. 1041/KOL/2013 A.Y: 2007-08 ASHA DEVI MOHTA VS. D.C.I.T., CIR-34, KOLKA TA PAN: AFCPM 4757R [APPELLANT] [RESPONDENT ] FOR THE APPELLANT : SHRI P.J. BHIDE, FCA, LD. AR FOR THE RESPONDENT : SHRI SAURABH KUMAR,ADDL.CI T, LD.SR.DR DATE OF HEARING : 18-09-2017 DATE OF PRONOUNCEMENT : 06-10-2017 ORDER SHRI S.S.VISWANETHRA RAVI, JM: THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER D T. 07-01- 2013 PASSED BY THE CIT-A,XX, KOLKATA FOR THE ASSESS MENT YEAR 2007- 08. 2. HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. 3. THE AO ADDED AN AMOUNT OF RS.1,14,03,73/- TREATI NG THE SAME AS DEEMED DIVIDEND INCOME AS PER SECTION 2(22)(E) O F THE ACT. BEFORE THE CIT-A THE ASSESSEE ARGUED THAT THE PROVISIONS O F SECTION 2(22)(E) OF THE ACT DOES NOT APPLY TO THE ASSESSEE AS THE A SSESSEE WAS HAVING LESS THAN 1% OF TOTAL PAID UP SHARES OF THE COMPANY AS ON THE DATE OF ASSESSMENT. BUT, HOWEVER, THE CIT-A DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE AND CONFIRMED THE IMPUGNED ADDITION MA DE BY THE AO. 4. BEFORE US THE LD.AR SUBMITS THAT THE ASSESSEE SO LD 23,400 SHARES TO M/S. RADHA KISHAN MOHTA ON 10-07-2006 AND ON THE DATE OF ASSESSMENT THE ASSESSEE WAS HOLDING ONLY 140 SHARES , WHICH IS LESS THAN 1% OF THE TOTAL PAID UP CAPITAL. THE LD.AR REF ERRED TO PAGE NO. 2 OF THE PAPER BOOK AND ARGUED THAT THE ASSESSEE FILE D A LETTER DT. 01- 11-2010 BEFORE THE AO STATING THAT THE ASSESSEE WAS HOLDING 23540 2 ITA NO.1041//KOL/2013 EQUITY SHARES @ RS. 100/- EACH AND SOLD 23,400 SHAR ES TO M/S. RADHA KISHAN MOHTA FOR A CONSIDERATION OF RS.3,15,90,000 /- AND WAS HOLDING 140 SHARES AND THE SAME WAS REFLECTED IN TH E BOOKS OF ACCOUNT AND ALSO DISCLOSED THE SAME IN THE RETURN O F INCOME. INSPITE OF HAVING KNOWLEDGE THAT THE ASSESSEE WAS HOLDING L ESS THAN 1% SHARES, THE AO HIGH HANDEDLY ADDED THE SAME. BUT TH E LD.AR WAS NOT ABLE TO SHOW THAT THE ASSESSEE OFFERED AND DISCLOSE D THE SALE CONSIDERATION OF RS.3,15,90,000/- IN THE RETURN OF INCOME FOR THE A.Y 2007-08 AS THE SHARES WERE STATED TO HAVE BEEN SOLD ON 10-07-2006 I.E. RELEVANT TO A.Y UNDER CONSIDERATION. WE FURTHE R FIND THAT THE SAME WAS CONVEYED TO AO BY SAID LETTER DT. 01-11-20 10 BY THE ASSESSEE AND IT WAS NOT REFERRED IN THE ASSESSMENT ORDER BY THE AO. THEREFORE, TAKING INTO CONSIDERATION THE SUBMISSION S OF ASSESSEE AND IN THE INTEREST OF JUSTICE, WE DEEM IT FIT AND PROP ER TO REMAND THE ISSUE TO THE FILE OF THE AO WITH THE DIRECTION TO C ONDUCT ENQUIRY WITH REGARD TO THE SUBMISSION THAT THE ASSESSEE OFFERED THE SALE CONSIDERATION OF RS. 3,15,90,000/- IN THE RETURN OF INCOME AND THE ISSUES INCIDENTAL THERETO. THE ASSESSEE SHALL BE AT LIBERTY TO FILE REQUISITE EVIDENCES, IF ANY, TO SUBSTANTIATE ITS CL AIM. THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 06-10-2017 SD/- SD/- WASEEM AHMED S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 06-10-2017 PP(SR.P.S.) 3 ITA NO.1041//KOL/2013 COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT/ASSESSEE: SMT. ASHA DEVI MOHTA C/O RADHA KISHAN MOHTA 7 LYONS RANGE, STOCK EXCHANGE BUILDING, 2 ND FLOOR, ROOM NO. 4C, KOLKATA-1. 2 RESPONDENT/REVENUE THE DCIT, CIR-34, AAYKAR BHAVAN, POORVA, 110 SHANTIPALLY,E.M BYE PASS, KOLKATA-107. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR.PS/H.O.O ITAT KOLKATA