M/s Hansraj Jhanwar (HUF), Kolkata V. I.T.O.,Ward-34(3), Kolkata

ITA 1259/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5731 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 24-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: P J BHIDE; R C JHAWER
• Keywords: Unexplained cash credit; Capital Gains; Bogus
• Section: 68; 69C; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH KOLKATA [BEFORE SRI S. S. GODARA, JUDICIAL MEMBER] ./I.T.A NO.1231/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2015-16) SANJEEV BUBNA (HUF) 11A, JUDGES COURT ROAD, ALIPORE, KOLKATA. VS. ITO, WARD-36(3), KOLKATA ./ ./PAN/GIR NO.: AAFHS3337B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI P J BHIDE, FCA RESPONDENT BY : SMT. RANU BISWAS, ADDL. CIT-DR & ./I.T.A NO.1258/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2015-16) SMT. KAMALA DEVI JHANWAR 89, NETAJI SUBHAS ROAD, DALHOUSIE, KOLKATA. VS. ITO, WARD-35(3), KOLKATA ./ ./PAN/GIR NO.: ACOPJ2000K (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI R C JHAWER, CA RESPONDENT BY : SMT. RANU BISWAS, ADDL. CIT-DR & ./I.T.A NO.1259/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2015-16) M/S HANSRAJ JHANWAR 89, NETAJI SUBHAS ROAD, DALHOUSIE, KOLKATA. VS. ITO, WARD-34(3), KOLKATA ./ ./PAN/GIR NO.: AABHH0566H (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI R C JHAWER, CA RESPONDENT BY : SMT. RANU BISWAS, ADDL. CIT-DR I.T.A NO.1231, 1258,1259,1260,1261&1262/KOL/2019 SANJEEV BUBNA (HUF) & OTHERS ASSESSMENT YEAR: 2015-16 PAGE | 2 & ./I.T.A NO.1260/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2015-16) SHRI NARRU KUMAR JHANWAR 89, NETAJI SUBHAS ROAD, DALHOUSIE, KOLKATA. VS. ITO, WARD-35(2), KOLKATA ./ ./PAN/GIR NO.: ACXPJ2501N (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI R C JHAWER, CA RESPONDENT BY : SMT. RANU BISWAS, ADDL. CIT-DR & ./I.T.A NO.1261/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2015-16) M/S INDRA CHAND JHANWAR (HUF) 89, NETAJI SUBHAS ROAD, DALHOUSIE, KOLKATA. VS. ITO, WARD-35(2), KOLKATA ./ ./PAN/GIR NO.: AAAHI2559E (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI R C JHAWER, CA RESPONDENT BY : SMT. RANU BISWAS, ADDL. CIT-DR & ./I.T.A NO.1262/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2015-16) SHRI NARRU KUMAR JHANWAR (HUF) 89, NETAJI SUBHAS ROAD, DALHOUSIE, KOLKATA. VS. ITO, WARD-35(2), KOLKATA ./ ./PAN/GIR NO.: AACHN8739H (APPELLANT) .. (RESPONDENT) I.T.A NO.1231, 1258,1259,1260,1261&1262/KOL/2019 SANJEEV BUBNA (HUF) & OTHERS ASSESSMENT YEAR: 2015-16 PAGE | 3 APPELLANT BY : SHRI R C JHAWER, CA RESPONDENT BY : SMT. RANU BISWAS, ADDL. CIT-DR / DATE OF HEARING : 29/01/2020 /DATE OF PRONOUNCEMENT : 14/02/2020 / O R D E R PER SHRI S. S. GODARA: THESE SIX ASSESSEES HAVE FILED THEIR AS MANY INSTANT APPEALS FOR ASSESSMENT YEAR 2015-16 AGAINST THE COMMISSIONER OF INCOME TAX (A)S SEPARATE ORDERS TREATING THEIR LONG-TERM CAPITAL GAINS OF RS.40,20,000/-, RS.3,59,250/-, RS.4,49,683/-, RS.4,48,625/-, RS.4,50,750/- & RS.4,49,500/-, RESPECTIVELY AS BOGUS UNEXPLAINED CASH CREDITS U/S 68, INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) INVOLVED IN SUCH SHARE TRANSACTIONS. I HAVE HEARD ALL THESE ASSESSEES AS WELL AS THE REVENUE. CASE FILES PERUSED. 2. IT TRANSPIRES AT THE OUTSET THAT THE ASSESSEES IDENTICAL SOLE SUBSTANTIVE GRIEVANCE IN ALL THESE CASES THAT BOTH THE LEARNED LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN TREATING THEIR RESPECTIVE LONG-TERM CAPITAL GAINS DERIVED FROM SALE OF VARIOUS SCRIPS INVOLVING VARYING SUMS AS BOGUS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT DESPITE THE FACT THAT ALL THE COGENT/CONTEMPORANEOUS EVIDENCE DULY PROVES GENUINENESS AND CREDITWORTHINESS THEREOF. LEARNED AUTHORIZED REPRESENTATIVES ALSO REFERRED TO THE ASSESSEES VOLUMINOUS PAPER-BOOKS TO THIS EFFECT. HE FURTHER SUBMITTED THAT THE CBDTS RECENT SOP ISSUED IN THE YEAR 2019; ALONG WITH ANNEXURE A-D, HAS DIRECTED THE FIELD AUTHORITIES TO CARRY OUT DETAILED INVESTIGATIONS ON MULTIPLE ASPECTS. 3. THE ASSESSEES CASE ACCORDINGLY IS THAT THE CBDT ITSELF HAS ACKNOWLEDGED IN SOP THAT SUCH AN ADDITION HAS TO BE BASED ON ACTUAL THAN CIRCUMSTANTIAL I.T.A NO.1231, 1258,1259,1260,1261&1262/KOL/2019 SANJEEV BUBNA (HUF) & OTHERS ASSESSMENT YEAR: 2015-16 PAGE | 4 EVIDENCE. THE REVENUE ON THE OTHER HAND PLEADED TO AFFIRM THE IMPUGNED ADDITIONS, SINCE THE ASSESSEES COULD NOT PROVE GENUINENESS/CREDITWORTHINESS OF THEIR SHARE TRANSACTIONS INDICATING ARTIFICIAL RIGGING OF SCRIP PRICES. 4. AFTER GIVING MY THOUGHTFUL CONSIDERATION TO THE FOREGOING RIVAL PLEADINGS AND ON PERUSAL OF ALL THE CASE FILES, I NOTE THAT LEARNED LOWER AUTHORITIES IDENTICAL FINDINGS HAVE GONE BY CIRCUMSTANTIAL THAN ACTUAL EVIDENCE BEFORE INVOKING THE IMPUGNED ADDITION. I THEREFORE DEEM IT APPROPRIATE THAT THE CIT(A) NEEDS TO BE RE- EXAMINE THE ENTIRE ISSUE AFRESH IN ALL THESE CASES IN VIEW OF THE CBDTS LATEST SOP, NOT CONSIDERED EARLIER AS PER LAW WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING IN CONSEQUENTIAL PROCEEDINGS. THESE ASSESSEES IDENTICAL SOLE SUBSTANTIVE GRIEVANCE IS RESTORED BACK TO THE CIT(A) THEREFORE. 4. COMMISSION EXPENDITURE ADDITION, IF ANY, U/S 69C OF THE ACT ALSO FOLLOWS SUIT. 5. THESE ASSESSEES APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. A COPY OF THE INSTANT COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 14.02.2020. SD/- (S. S. GODARA) JUDICIAL MEMBER /KOLKATA; / DATE: 14/02/2020 RS / COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT (I) SANJEEV BUBNA (HUF) (II) SMT. KAMALA DEVI JHANWAR (III) M/S HANSRAJ JHANWAR (IV) SHRI NARRU KUMAR JHANWAR (V) M/S INDRA CHAND JHANWAR (HUF) (VI) SHRI NARRU KUMAR JHANWAR (HUF) I.T.A NO.1231, 1258,1259,1260,1261&1262/KOL/2019 SANJEEV BUBNA (HUF) & OTHERS ASSESSMENT YEAR: 2015-16 PAGE | 5 TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 2. THE RESPONDENT- (I)ITO, WARD-36(3), KOLKATA (II) ITO, WARD-35(3), KOLKATA (III) ITO, WARD-34(3), (IV) ITO, WARD-35(2), KOLKATA (V) ITO, WARD-35(2), KOLKATA (VI) ITO, WARD-35(2), KOLKATA 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.