Sri. H.N. Gopalakrishna Setty, Bangalore V. ITO, Bangalore

ITA 1296/BANG/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63802 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-11-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 16-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIJOY KUMAR
• Assessee Lawyers: PRATHIBA
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI N. BARAT H VAJA SANKAR, VICE - PRESIDENT A ND SMT. P.MADHAVI DEVI , JUDICIAL MEMBER ITA NO.1296/BANG/2011 (ASSESSMENT YEAR: 2004-05) SHRI H.N.GOPALAKRISHNA SETTY, NO.325, 6 TH MAIN , HAL II STAGE, BANGALORE - 560038. PAN:ACGPS0894Q VS. APPELLANT INCOME - TAX OFFICER, WARD 7(4), BANGALORE. RESPONDENT A PPELLANT BY: MS.PRATHIBA. ADVOCATE. RESPONDENT BY : SHRI BIJOY KUMAR PANDA. DATE OF HEARING: 22 - 11 - 2012. DATE OF PRONOUNCEMENT: 22 - 11 - 2012 O R D E R PER SMT. P.MADHAVI DEVI, JM: THIS IS ASSESSEES APPEAL AND IS DIRECTED AGAINST T HE ORDER OF THE CIT(A)-LTU, BANGALORE, DATED 31-10-2011 FOR THE ASSESSMENT YEAR 2004-05. 2. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CI T(A) IN CONFIRMING THE ADDITIONS MADE TO THE RETURNED INCOM E IN THE ASSESSMENT ORDER HOLDING THAT THE SHARES HELD DURIN G THE YEAR WERE HELD FOR LESS THAN A YEAR RESULTING IN SHORT-TERM C APITAL GAIN. IT IS ITA NO.1296/BANG/2011 PAGE 2 OF 3 THE CASE OF THE ASSESSEE THAT THE SHARES HELD WERE BONUS SHARES ALLOTTED ON ACCOUNT OF EQUITY SHARE WHICH WERE HELD BY THE ASSESSEE FOR MORE THAN A DECADE AND THEREFORE THE CAPITAL GA IN ARISING FROM THE SALE OF SUCH SHARES IS LONG TERM CAPITAL GAIN WHICH IS EXEMPT U/S10(38) OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT']. 3. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS FILED BEFORE US EVIDENCE TO DEMONSTRAT E THAT THE EQUITY SHARES WERE HELD BY THE ASSESSEE FROM 16-10- 1990 TO 16-10-2012. SHE HAS ALSO FILED ADDITIONAL DOCUMENT S SUCH AS COPIES OF DIVIDEND WARRANT SLIPS OF SBI, COPIES OF LETTERS OF M/S.LINK INTIME INDIA PVT. LTD., ALONG WITH MRPL DIVIDEND WA RRANT SLIPS AND THE LETTER OF THE BANGALORE STOCK EXCHANGE LTD. ALO NG WITH DIVIDEND WARRANT SLIPS OF HINDUSTAN LEVER LTD. ETC. TO SHOW THAT THE SHARES WERE HELD BY THE ASSESSEE FOR MORE THAN A DECADE. AN APPLICATION UNDER RULE 29 OF THE APPELLATE TRIBUNAL RULES IS FI LED SEEKING ADMISSION OF THE ADDITIONAL EVIDENCE FILED BEFORE T HE TRIBUNAL. 4. AS THE VERY ISSUE AS TO WHETHER THE CAPITAL GAIN S ARISING OUT OF SALE OF BONUS SHARES IS SHORT TERM CAPITAL G AIN OR LONG TERM CAPITAL GAIN IS DEPENDENT UPON THE ADDITIONAL EVIDE NCE FILED BY THE ASSESSEE, WE ARE OF THE OPINION THAT THE ENDS OF JU STICE WOULD BE MET IF THE ADDITIONAL EVIDENCE FILED BY THE ASSESSE E IS ADMITTED. THEREFORE, WE ADMIT THE ADDITIONAL EVIDENCE FILED B Y THE ASSESSEE AND REMAND THE ISSUE BACK TO THE FILE OF THE AO WIT H A DIRECTION TO CONSIDER THE ISSUE DE NOVO IN ACCORDANCE WITH LAW IN VIEW OF THE ITA NO.1296/BANG/2011 PAGE 3 OF 3 ADDITIONAL EVIDENCE FILED BY THE ASSESSEE. NEEDLES S TO MENTION THAT THE ASSESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF H EARING. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND NOVEMBER, 2012 . SD/- SD/- (N.BARATHVAJA SANKAR) VICE-PRESIDENT (SMT. P. MADHAVI DEVI ) JUDICIAL MEMBER EKS COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) CONCERNED 4. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBU NAL, BANGALORE