ITO, Ward - 6(1), Kolkata, Kolkata V. M/s. Deeplok Financial Services Ltd., Kolkata

ITA 1279/KOL/2010

• Counselvise Citation: 127923514 RSA 2010
• Duration Of Justice: 5 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 21-06-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Capital asset converted into stock in trade; Business income; Opportunity of being heard; Cost of acquisition; Date of conversion
• Section: 143(3); 14A

Judgement Text

I.T.A. NO. 1279/KOL./2010 ASSESSMENT YEAR: 2006-2007 & C.O. NO. 120/KOL/2010 (IN ITA NO. 1279/KOL/2010) ASSESSMENT YEAR: 2006-2007 PAGE 1 OF 8 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 1279/KOL/ 2010 ASSESSMENT YEAR : 2006-2007 INCOME TAX OFFICER,................................ ............................APPELLANT WARD-6(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, 6 TH FLOOR, KOLKATA-700 069 -VS.- M/S. DEEPLOK FINANCIAL SERVICES LIMITED,........... ..............RESPONDENT 11/1, SARAT BOSE ROAD, 2 ND FLOOR, KOLKATA-700 020 [PAN : AABCD 0576 A] & C.O. NO. 120/KOL/2010 (ARSING OUT OF I.T.A. NO. 1279/KOL/ 2010) ASSESSMENT YEAR : 2006-2007 M/S. DEEPLOK FINANCIAL SERVICES LIMITED,........... ..............CROSS OBJECTOR 11/1, SARAT BOSE ROAD, 2 ND FLOOR, KOLKATA-700 020 [PAN : AABCD 0576 A] -VS.- INCOME TAX OFFICER,................................ ............................RESPONDENT WARD-6(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, 6 TH FLOOR, KOLKATA-700 069 APPEARANCES BY: SHRI NILOY BARAN SOM, JCIT, SR. D.R., FOR THE DEPARTMENT SHRI S.L. KOCHAR, ADVOCATE AND SHRI ANIL KOCHAR, AD VOCATE , FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : NOVEMBER 18, 2015 DATE OF PRONOUNCING THE ORDER : NOVEMBER 27, 2015 I.T.A. NO. 1279/KOL./2010 ASSESSMENT YEAR: 2006-2007 & C.O. NO. 120/KOL/2010 (IN ITA NO. 1279/KOL/2010) ASSESSMENT YEAR: 2006-2007 PAGE 2 OF 8 O R D E R PER SHRI P.M. JAGTAP :- THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-VI, KOLKATA DA TED 30.03.2010 FOR THE ASSESSMENT YEAR 2006-07 AND THE SAME IS BEING D ISPOSED OF ALONG WITH CROSS OBJECTION FILED BY THE ASSESSEE BEING C. O. NO. 120/KOL/2010. 2. IN THE SOLITARY GROUND IN ITS APPEAL, THE REVENU E HAS CHALLENGED THE ACTION OF THE LD. CIT(APPEALS) IN TREATING THE PROF IT OF RS.22,27,819/- ARISING TO THE ASSESESE FROM SALE OF CERTAIN SHARES AS LONG-TERM CAPITAL GAIN AS CLAIMED BY THE ASSESSEE AND NOT BUSINESS IN COME AS HELD BY THE ASSESSING OFFICER. 3. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF LEASING, FINANCE AND INVESTMENT. TH E RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY THE ASSES SEE ON 30.11.2006 DECLARING TOTAL INCOME OF RS.40,23,001/-. ON 01.04. 2004, I.E. DURING THE PREVIOUS ASSESSMENT YEAR 2005-06, THE FOLLOWING SHA RES WERE TRANSFERRED BY THE ASSESSEE FROM ITS TRADING STOCK INTO INVESTM ENT:- 1. HIND LEVER CHEM LIMITED 10,370 SHARES 2. CHAMBAL FERTILISERS CHEM LIMITED 38,000 SHARES 3. EVEREADY INDUSTRIES LIMITED 14,580 SHARES 4. SHRACHI SECURITIES LIMITED 48,000 SHARES 4. OUT OF THE ABOVE SHARES CLAIMED TO BE CONVERTED INTO INVESTMENT, ENTIRE SHARES OF HIND LEVER CHEM LIMITED AND SHRACH I SECURITIES LIMITED AND 5,000 SHARES OF CHAMBAL FERTILISERS CHEM LIMITE D WERE SOLD BY THE ASSESSEE IN THE PREVIOUS YEAR RELEVANT TO A.Y. 2005 -06. THE BALANCE 33,000 SHARES OF CHAMBAL FERTILISERS CHEM LIMITED A ND 14,580 SHARES OF EVEREADY INDUSTRIES LIMITED WERE SOLD BY THE ASSEES SEE DURING THE YEAR UNDER CONSIDERATION AND THE PROFIT ARISING FROM THE SAID SALE WAS CLAIMED I.T.A. NO. 1279/KOL./2010 ASSESSMENT YEAR: 2006-2007 & C.O. NO. 120/KOL/2010 (IN ITA NO. 1279/KOL/2010) ASSESSMENT YEAR: 2006-2007 PAGE 3 OF 8 TO BE EXEMPT FROM TAX BEING LONG-TERM CAPITAL GAIN. IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) FOR A.Y. 2005-06, TH E CLAIM OF THE ASSESSEE FOR CONVERSION OF SHARES FROM STOCK IN TRA DE INTO INVESTMENT WAS NOT ACCEPTED BY THE ASSESSING OFFICER AND RELYING O N THE SAID DECISION, THE ASSESSING OFFICER IN THE YEAR UNDER CONSIDERATION D ID NOT ACCEPT THE CLAIM OF THE ASSESSEE FOR EXEMPTION ON ACCOUNT OF LONG-TE RM CAPITAL GAIN ARISING FROM 33,000 SHARES OF CHAMBAL FERTILISERS CHEM LIMI TED AND 14,580 SHARES OF EVEREADY INDUSTRIES LIMITED AND BROUGHT T O TAX PROFIT ARISING FROM THE SAID SHARES AMOUNTING TO RS.22,27,819/- TO TAX IN THE HANDS OF THE ASSESSEE AS BUSINESS PROFIT. 5. THE ACTION OF THE ASSESSING OFFICER IN TREATING THE PROFIT ARISING FROM THE SALE OF SHARES OF CHAMBAL FERTILISERS CHEM LIMITED AND EVEREADY INDUSTRIES LIMITED AS BUSINESS PROFIT THEREBY DENYI NG ITS CLAIM FOR EXEMPTION ON ACCOUNT OF LONG TERM CAPITAL GAIN WAS CHALLENGED BY THE ASSESSEE IN THE APPEAL FILED BEFORE THE LD. CIT(APP EALS) AND AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSEE AS WELL AS THE MATERIAL AVAILABLE ON RECORD, THE LD. CIT(APPEALS) ACCEPTED THE CLAIM OF THE ASSESSEE THAT THE SAID PROFIT REPRESENTING LONG-TER M CAPITAL GAIN WAS EXEMPT FROM TAX FOR THE FOLLOWING REASONS GIVEN IN HIS IMPUGNED ORDER:- I HAVE ALSO GONE THROUGH THE ORDER OF THE CIT (A) ON THE ASSESSMENT ORDER FOR A.Y. 2005-06. THIS ORDER WAS P ASSED ON 21.5.2008. THE CIT (A) HAS RELIED ON THE CBDT CIRCULAR/INSTRUCTION NO.1827 DT. 31.8.1989 AND HELD THAT HUGE NUMBER OF SHARES WAS ACQUIRED AND ALSO SOLD ON DIFF ERENT OCCASIONS, SO MAIN MOTIVE WAS TO EARN PROFIT BY DEA LING IN SHARES. THE CIT(A) HAS NOT SPECIFICALLY DISCUSSED I N THE ORDER REGARDING THE VALIDITY OF CONVERSION OF SHARES FROM TRADING A/C TO INVESTMENT ACCOUNT. THE CIT (A) ORDER CONCLUDED THAT THE PROFIT EARNED BY THE ASSESSEE COMPANY IN SHARE TRAN SACTION CONSTITUTE BUSINESS INCOME AND ACCORDINGLY, ASSESSE D UNDER THE HEAD BUSINESS AND THE CLAIM OF THE ASSESSEE COMPANY TO TREAT THE SAME AS CAPITAL GAIN DENIED. AS SEEN FROM INCOM E TAX ACT, THE IT ACT DOES NOT CONTAIN ANY PROVISIONS PROHIBIT ING THE CONVERSION OF SHARES FROM TRADING ACCOUNT TO INVEST MENT ACCOUNT. THE ITAT MUMBAI H BENCH IN THE CASE OF A CIT VS. BRIGHT STAR INVESTMENTS PVT. LTD. [2/07/2008] IN TH EIR ORDER I.T.A. NO. 1279/KOL./2010 ASSESSMENT YEAR: 2006-2007 & C.O. NO. 120/KOL/2010 (IN ITA NO. 1279/KOL/2010) ASSESSMENT YEAR: 2006-2007 PAGE 4 OF 8 HELD THAT ASSESSEE CONVERTED SAME SHARES FROM STOCK IN TRADE TO INVESTMENT ON 1 ST APRIL 1998 AT BOOK VALUE, THEREAFTER SOLD THEM AND CLAIMED THE RECEIPTS AS LONG TERM CAPITAL GAINS A.O. APPLYING SECTION 45(2), TREATED THE RECEIPTS AS BUS INESS INCOME UPTO THE DATE OF CONVERSION AND THEREAFTER LONG TER M CAPITAL GAINS. THE HON'BLE ITAT FURTHER OBSERVED 'WHILE INCORPORAT ING THE SUBSECTION (2) TO SECTION '45, THE LEGISLATURE HAS NOT VISUALIZED THE SITUATIONS IN THE OTHER WAY ROUND, W HERE, THE STOCK IN TRADE IS TO BE CONVERTED INTO THE INVESTME NTS AND LATER ON THE INVESTMENT WAS SOLD ON PROFIT. IN THE ABSENC E OF A SPECIFIC PROVISION TO DEAL WITH THIS TYPE OF SITUAT IONS, A RATIONAL FORMULA SHOULD BE WORKED OUT TO DETERMINE THE PROFI TS AND GAINS ON TRANSFER OF THE ASSET. WE ARE ALSO CONSCIO US ABOUT THE JUDGEMENT IN CASES OF SIR KAKABHI PREMCHAND VS. CIT (1952) 24 ITR 506 (SC), CIT V. DHANUKA AND SONS ITR 24 (CAL) WHICH IT HAS BEEN HELD THAT THERE CANNOT BE AN ACTUAL PROFIT OR LOSS OF SUCH TRANSFER WHEN NO THIRD PARTY IS INVOLVED AND T HE ITEMS ARE KEPT IN A DIFFERENT ACCOUNT OF THE ASSESSEE BY HIMS ELF. THE ACQUISITION OF GAIN OR LOSS WOULD ARISE ONLY IN FUT URE WHEN, THE STOCK TRANSFERRED TO THE INVESTMENT ACCOUNT MIGHT B E DEALT WITH BY THE ASSESSEE. IF SUCH SHARES BE DISPOSED OF F AT A VALUE OTHER THAN THE VALUE AT WHICH IT WAS TRANSFERRED FR OM THE BUSINESS STOCK, THE QUESTION OF CAPITAL LOSS OR CAP ITAL GAIN WOULD ARISE. IN THE ABSENCE OF A SPECIFIC PROVISION TO DEAL WITH THE PRESENT SITUATION, TWO FORMULAS CAN BE EVOLVED TO WORK OUT THE PROFITS AND GAINS ON TRANSFER OF THE ASSETS. ON E FORMULA WHICH HAS BEEN ADOPTED BY THE ASSESSING OFFICER I.E ., DIFFERENCE BETWEEN THE BOOK VALUE OF THE SHARES AND THE MARKET VALUE OF THE SHARES ON THE DATE OF CONVERSION SHOULD BE TAKE N AS A BUSINESS INCOME AND THE DIFFERENCE BETWEEN THE SALE PRICE OF THE SHARES AND THE MARKET VALUE OF THE SHARES ON TH E DATE OF CONVERSION, BE TAKEN AS A CAPITAL GAIN. THE OTHER F ORMULA WHICH IS ADOPTED BY THE ASSESSEE I.E., THE DIFFERENCE BET WEEN THE SALE PRICE OF THE SHARES AND THIS COST OF ACQUISITION OF SHARE, WHICH IS THE BOOK VALUE ON THE DATE OF CONVERSION WITH IN DEXATION FROM THE DATE OF CONVERSION, SHOULD BE COMPUTED AS A CAPITAL GAIN. IN THE ABSENCE OF SPECIFIC PROVISION, OUT OF THESE TWO FORMULAE, THE FORMULA WHICH IS FAVOURABLE TO THE AS SESSEE, SHOULD BE ACCEPTED. IN CASE OF CIT V. DHANUKA AND SONS 124 ITR (CAL) IT HAS BEEN CATEGORICALLY HELD THAT PROFIT AND GAINS ON SH ARES TRANSFERRED FROM TRADING ACCOUNT TO INVESTMENT ACCO UNT AT PREVAILING MARKET RATE IS NOT A TRANSACTION AT ALL BECAUSE A PERSON CANNOT HAVE TRANSACTION WITH HIMSELF AND IN TURN SUCH PROFIT CANNOT BE TAXED. IF SUCH SHARES BE DISPOSED OF AT A VALUE OTHER THAN THE VALUE AT WHICH IT WAS TRANSFERRED FR OM THE BUSINESS STOCK, THE QUESTION OF CAPITAL LOSS OR CAP ITAL GAIN WOULD ARISE. IN THE PRESENT CASE THE CONVERSION OF SHARES FROM TRADING ACCOUNT TO INVESTMENT ACCOUNT WAS DONE AT S TOCK I.T.A. NO. 1279/KOL./2010 ASSESSMENT YEAR: 2006-2007 & C.O. NO. 120/KOL/2010 (IN ITA NO. 1279/KOL/2010) ASSESSMENT YEAR: 2006-2007 PAGE 5 OF 8 EXCHANGE QUOTED RATES AS ON 1.4.2004. THE SHARES OF CHAMBAL FERTILIZERS WERE SOLD IN THE MONTH OF FEBRUARY, 200 6 AND THE SHARES OF EVEREADY INDUSTRIES LIMITED IN THE MONTH OF DECEMBER, 2005. THE CLAIM OF THE APPELLANT FOR CAPI TAL GAIN IN RESPECT OF SHARES OF THESE TWO COMPANIES IS ACCEPTA BLE. IN VIEW OF THE ABOVE DISCUSSION, IN MY OPINION THE CONVERSI ON OF SHARES OF THE TWO COMPANIES FROM TRADING ACCOUNT TO INVEST MENT ACCOUNT IS LEGITIMATE AND THE A.O. IS DIRECTED TO T REAT THE INCOME ON-SALE OF THESE 2 SHARES AS INCOME FROM LON G TERM CAPITAL GAINS. THIS GROUND OF APPEAL IS ALLOWED. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE REVENUE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 6. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. D.R., THE ORDER OF THE ASSESSING OFFICER PASSED IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2005-06 REJECTING THE CLAIM OF THE ASSESSEE FOR CONVERSION OF THE RELEVANT SHARES FROM STOCK IN TRA DE INTO INVESTMENT HAS BEEN UPHELD BY THE TRIBUNAL VIDE ITS ORDER DATED 13 .05.2011 PASSED IN ASSESSEES OWN CASE IN ITA NO. 1475/KOL/2008. HE HA S CONTENDED THAT THE SHARES SOLD BY THE ASSESSEE DURING THE YEAR UND ER CONSIDERATION THUS ARE HELD TO BE STOCK IN TRADE OF THE ASSESSEE BY TH E TRIBUNAL IN THE IMMEDIATELY PRECEDING YEAR, I.E. A.Y. 2005-06 AND C ONSEQUENTLY THE PROFIT ARISING FROM THE SALE OF THE SAID SHARES IN THE YEA R UNDER CONSIDERATION IS LIABLE TO BE ASSESSED TO TAX IN THE HANDS OF THE AS SESSEE AS BUSINESS INCOME AS RIGHTLY HELD BY THE ASSESSING OFFICER. TH E LD. COUNSEL FOR THE ASSESESE, ON THE OTHER HAND, HAS RELIED UPON VARIOU S JUDICIAL PRONOUNCEMENTS, WHEREIN A SIMILAR CONVERSION OF SAL ES BY THE ASSESSEE FROM STOCK IN TRADE INTO INVESTMENT HAS BEEN ACCEPT ED. HE HAS CONTENDED THAT THE ISSUE INVOLVED IN THIS APPEAL OF THE REVEN UE THUS IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE IN PRINCIPLE BY T HESE VARIOUS JUDICIAL PRONOUNCEMENTS AND THE IMPUGNED ORDER OF THE LD. CI T(APPEALS) GIVING RELIEF TO THE ASSESSEE DESERVES TO BE UPHELD IRRESP ECTIVE OF THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2005-0 6 REJECTING THE CLAIM I.T.A. NO. 1279/KOL./2010 ASSESSMENT YEAR: 2006-2007 & C.O. NO. 120/KOL/2010 (IN ITA NO. 1279/KOL/2010) ASSESSMENT YEAR: 2006-2007 PAGE 6 OF 8 OF THE ASSESSEE FOR CONVERSION OF SHARES FROM STOCK IN TRADE INTO INVESTMENT. WE ARE UNABLE TO ACCEPT THIS CONTENTION OF THE LD. COUNSEL FOR THE ASSESESE. IT IS TRUE THAT IN THE VARIOUS JUDICI AL PRONOUNCEMENTS CITED BY THE LD. COUNSEL FOR THE ASSESESE, THE CONVERSION OF SHARES FROM STOCK IN TRADE INTO INVESTMENT HAS BEEN ACCEPTED DESPITE THE RE BEING NO SPECIFIC PROVISION TO RECOGNIZE SUCH CONVERSION. HOWEVER, IN ASSESSEES OWN CASE, THE TRIBUNAL HAS NOT ACCEPTED SUCH CONVERSION IN TH E IMMEDIATELY PRECEDING YEAR, I.E. A.Y. 2005-06 AND IT, THEREFORE , FOLLOWS THAT THE SHARES SOLD BY THE ASSESSEE DURING THE YEAR UNDER CONSIDER ATION CONTINUED TO CONSTITUTE ITS STOCK IN TRADE AND NOT INVESTMENT. C ONSEQUENTLY THE PROFIT ARISING FROM THE SALE OF THE SAID SHARES, IN OUR OP INION, IS CHARGEABLE TO TAX IN THE HANDS OF THE ASSESSEE AS ITS BUSINESS IN COME AS RIGHTLY HELD BY THE ASSESSING OFFICER AND NOT LONG-TERM CAPITAL GAI N AS HELD BY THE LD. CIT(APPEALS). WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) ON THIS ISSUE AND RESTORE THAT OF THE ASSESSING OFFICER. THE APPEAL OF THE REVENUE IS ACCORDINGLY ALLOWED. 7. AS REGARDS THE CROSS OBJECTION FILED BY THE ASSE SSEE, IT IS OBSERVED THAT THERE IS A DELAY OF 21 DAYS ON THE PART OF THE ASSESESE IN FILING THIS CROSS OBJECTION. IN THIS REGARD, THE LD. COUNSEL FO R THE ASSESESE HAS FILED AN APPLICATION SEEKING CONDONATION OF THE SAID DELA Y AND KEEPING IN VIEW THE REASON GIVING THEREIN, WHICH ARE DULY SUPPORTED BY AN AFFIDAVIT FILED BY THE ASSESSEE, WE ARE SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE DELAY ON THE PART OF THE ASSESSEE IN FILING THIS C. O. BEFORE THE TRIBUNAL. WE, THEREFORE, CONDONE THE SAME AND PROCEED TO DECI DE THE CROSS OBJECTION FILED BY THE ASSESSEE ON MERIT. 8. AT THE TIME OF HEARING BEFORE US, LD. REPRESENTA TIVES OF BOTH THE SIDES HAVE AGREED THAT THE SOLITARY ISSUE INVOLVED IN THE C.O. OF THE ASSESSEE RELATING TO THE DISALLOWANCE MADE BY THE A SSESSING OFFICER UNDER SECTION 14A AND SUSTAINED BY THE LD. CIT(APPEALS) I S SQUARELY COVERED BY I.T.A. NO. 1279/KOL./2010 ASSESSMENT YEAR: 2006-2007 & C.O. NO. 120/KOL/2010 (IN ITA NO. 1279/KOL/2010) ASSESSMENT YEAR: 2006-2007 PAGE 7 OF 8 THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2005-06 (SUPRA), WHEREIN A SIMILAR ISSUE HAS BEEN R ESTORED BY THE TRIBUNAL TO THE FILE OF THE ASSESSING OFFICER VIDE PARAGRAPH NO. 6 OF ITS ORDER, WHICH READS AS UNDER:- 6. AT THE TIME OF HEARING, LD. COUNSEL APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THERE WAS SOME ARITHMET ICAL MISTAKE BY THE ASSESSING OFFICER IN HIS ASSESSMENT ORDER WH EREIN HE HAS TREATED THE LONG TERM CAPITAL GAIN AS RS.77,13,674/ - WHEREAS ACTUAL LONG TERM CAPITAL GAIN IS RS.60,17,764/- ONL Y. HENCE, IT IS SUBMITTED THAT THE ISSUE MAY BE RESTORED TO THE FIL E OF THE ASSESSING OFFICER FOR RECOMPUTATION. FOR WHICH LD. DEPARTMENTAL REPRESENTATIVE HAS NOT MADE ANY SERIOUS OBJECTION T O RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR CONSIDERING THE MATTER AFRESH. UNDER THIS CIRCUMSTANCES AND IN THE INTEREST OF JUSTICE, WE RESTORE THE MATTER TO THE FILE OF THE A SSESSING OFFICER FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW AND AS PER RATIO OF JUDGMENT IN THE CASE OF GODREJ BOYCEE MANUFACTUR ING CO. LTD. -VS. DCIT [2010] 328 ITR 81 (BOMBAY) AFTER GIVING P ROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HENCE, GROUND NOS. 4 & 5 RAISED BY THE ASSESSEE ON THIS ISSUE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 9. AS THE ISSUE INVOLVED IN THE YEAR UNDER CONSIDER ATION AS WELL AS THE MATERIAL FACTS RELEVANT THERETO ARE SIMILAR TO THAT A.Y. 2005-06, WE SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) ON THIS ISSUE AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH AS PER THE SAME DIRECTION, AS GIVEN BY THE T RIBUNAL FOR ASSESSMENT YEAR 2005-06. THE CROSS OBJECTION OF THE ASSESESE I S ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALL OWED, WHILE THE C.O. OF THE ASSESSEE IS TREATED AS ALLOWED FOR STAT ISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 27, 2015. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 27 TH DAY OF NOVEMBER, 2015 I.T.A. NO. 1279/KOL./2010 ASSESSMENT YEAR: 2006-2007 & C.O. NO. 120/KOL/2010 (IN ITA NO. 1279/KOL/2010) ASSESSMENT YEAR: 2006-2007 PAGE 8 OF 8 COPIES TO : (1) INCOME TAX OFFICER, WARD-6(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, 6 TH FLOOR, KOLKATA-700 069 (2) M/S. DEEPLOK FINANCIAL SERVICES LIMITED, 11/1, SARAT BOSE ROAD, 2 ND FLOOR, KOLKATA-700 020 (3) COMMISSIONER OF INCOME-TAX (APPEALS)-VI, KOLKA TA (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.