SHRI VIKAS JAIN, JAIPUR V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7, JAIPUR

ITA 1048/JPR/2018

• Counselvise Citation: [2019] 113 COUNSELVISE.COM (IT) 6400 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 11-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANMOHAN KANDPAL ACIT DHK
• Keywords: Share purchase agreement; Reasonable cause
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA , ACCOUNTANT MEMBER VK;DJ VIHY LA -@ ITA NO. 1048/JP/2018 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2014-15 VIKAS JAIN, C/O- SHAH SURENDRA & ASSOCIATES, 208, ANUKAMPA II, M.I. ROAD, JAIPUR-302001. C UKE VS. D.C.I.T., CIRCLE-7, JAIPUR. LFKK;H YS[KK LA -@THVKBZVKJ LA -@ PAN/GIR NO.: ACEPJ 3172 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKS J LS @ ASSESSEE BY : SHRI RAJNIKANT BHATRA (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI MANMOHAN KANDPAL (ACIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 19/11/2019 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 20/11/2019 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD.CIT(A)-3, JAIPUR DATED 28/08/2018 FOR THE A.Y. 2014-15 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. IN THIS APPEAL, THE ASSESSEE IS BASICALLY AGGRIEVED FOR THE EX PARTE ORDER PASSED BY THE LD. CIT(A). THE ASSESSEE FILED AN AFFIDAVIT TO EXPLAIN THAT PROPER OPPORTUNITY WAS NOT GIVEN BY THE LD. CIT(A) TO THE ASSESSEE. ITA 1048/JP/2018 VIKAS JAIN VS DCIT 2 3. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT THE ASSESSEES CLAIM OF EXEMPTION U/S 10(38) OF THE ACT IN RESPECT OF LONG TERM CAPITAL GAIN WAS DECLINED BY THE A.O. BY THE IMPUGNED ORDER, THE LD. CIT(A) DISMISSED THE ASSESSEES APPEAL WITHOUT GOING ON MERIT AFTER OBSERVING THAT THE ASSESSEE HAS FAILED TO OFFER ANY EXPLANATION FOR SUBMISSION IN SUPPORT OF THE GROUNDS RAISED IN THIS APPEAL. 4. THE LD AR SHRI RAJNIKANT BHATRA INVITED OUR ATTENTION TO THE COPY OF PURCHASE BILL OF SHARE PURCHASED FROM M/S KAPPAC PHARMA LTD., COPY OF ACCOUNT STATEMENT OF ASSESSEE IN THE BOOKS OF BROKER M/S NATRAJ CAPITAL & CREDIT PVT. LTD., COPY OF SHARE TRANSFER FORM AND SHARE CERTIFICATES, COPY OF BANK STATEMENT HIGHLIGHTING THE AMOUNT PAID FOR PURCHASE OF SHARES, COPY OF SALE BILL (CONTRACT NOTE OF SALE OF SHARES OF M/S KAPPAC PHARMA LTD.), COPY OF ACCOUNT STATEMENT OF ASSESSEE IN THE BOOKS OF BROKER M/S MASTER CAPITAL SERVICES LTD., COPY OF BANK STATEMENT HIGHLIGHTING THE CONSIDERATION RECEIVED ON SALE OF SHARES AND COPY OF D-MAT ACCOUNT/SHARE HOLDING STATEMENT. IN VIEW OF ALL THESE DOCUMENTARY EVIDENCES, IT WAS ARGUED BY THE LD AR THAT THE ASSESSEES CLAIM FOR LONG TERM CAPITAL GAIN WERE WRONGLY DENIED BY THE A.O. ITA 1048/JP/2018 VIKAS JAIN VS DCIT 3 5. AFTER GOING THROUGH THE AFFIDAVIT, I AM SATISFIED THAT THERE WAS REASONABLE CAUSE FOR NON-APPEARANCE BEFORE THE LD. CIT(A), THEREFORE, IN THE SUBSTANTIAL INTEREST OF JUSTICE, I RESTORE THE MATTER BACK TO THE FILE OF THE LD. CIT(A) FOR DECIDING THE MATTER AFRESH ON MERIT AFTER CONSIDERING THE ASSESSEES CONTENTION. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN REASONABLE OPPORTUNITY OF HEARING. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH NOVEMBER, 2019 SD/- JES 'K LH 'KEKZ ( RAMESH C SHARMA ) YS[KK LNL; @ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 20 TH NOVEMBER, 2019 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- VIKAS JAIN, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE D.C.I.T., CIRCLE-7, JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 1048/JP/2018) VKNS 'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR