The ACIT, circle-5(3), Ahmedabad V. Shri Jagat Pravinbhai Sarabhai, Ahmedabad

ITA 1505/AHD/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7184 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 02-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘बी’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD (through web-based video conferencing platform) ] ] BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA No. 1505/Ahd/2019 Assessment Years : 2011-12 ACIT, Circle-5(3), Ahmedabad Vs Shri Jagat Pravinbhai Sarabhai, 2A, Shantiniketan-4, 14, Gitabaug Society, Paldi, Ahmedabad-38007 PAN : ADFPS 9932 D अपीलाथ牸 अपीलाथ牸अपीलाथ牸 अपीलाथ牸/ (Appellant) 灹त् 灹त् 灹त् 灹त् यथ牸 यथ牸यथ牸 यथ牸/ (Respondent) Revenue by : Shri Kamlesh Makwana, Sr DR Assessee by : Shri Bharat Shah, AR सुनवाई क琉 तारीख/Date of Hearing : 10/11/2021 घोषणा क琉 तारीख /Date of Pronouncement: 01/12/2021 आदेश आदेशआदेश आदेश/O R D E R PER RAJPAL YADAV, VICE PRESIDENT : The Revenue is in appeal before the Tribunal against the order of learned Commissioner of Income-tax (Appeals)-5, Ahmedabad [“CIT(A) in short] dated 17.07.2019 passed for Assessment Year 2011-12. Though the Revenue has taken 6 grounds of appeal, but its grievances revolve around a single issue viz. the learned CIT(A) has erred in deleting the addition of Rs.2,10,474/- made by the Assessing Officer under Section 68 of the Income- Tax Act, 1961 (“the Act” in short). 2. The brief facts of the case are that the assessee has filed his return of income on 29.03.2012 declaring total income of Rs.3,11,490/-. The assessee has claimed exemption under Section 10(38) of the Act of Rs.2,10,474/- which was a Long Term Capital Gain arose from the sale of shares of M/s. Devika Proteins Limited. The learned Assessing Officer treated this as a ITA No. 1505/Ahd/2019 ACIT Vs Shri Jagat Pravinbhai Sarabhai AY : 2011-12 2 penny stock and a bogus claim. He accordingly made addition under Section 68 of the Act. 3. On appeal, the learned CIT(A) deleted this addition by recording the following findings:- “5.2 I have carefully considered the facts of the case and submission made by the appellant. In the assessment order, it is noticed by the AO that the assessee has earned long term capital gain income on sale of shares of M/s. Devika Proteins Limited to the tune of Rs.2,10,474/- and the same was claimed as exempt u/s. 10(38) of the Act. The AO treated the entire transaction as Penny Stock transaction and thereby made addition Rs.2,10,474/- u/s.68 of the Act. 5.3 The appellant has given the evidence that the shares were bought for genuine investment long back in the year 2000-2001 and at that time these shares by any stretch of imagination cannot be treated as penny stock. To substantiate the above contention, the appellant filed copy of transaction statement for the period 01/06/2001 to 01/10/2010 which substantiates the claim made by the appellant. The appellant further submitted that the above Retails were also filed before the AO. In view of the above facts, the contention of appellant is found tenable and accordingly addition made by the AO on account of bogus capital gain is deleted.” 4. After due consideration of the findings of the learned CIT(A), we do not find any error in it. The shares were purchased long back in 2000-2001 and sold after retaining them for more than 10 years. There is nothing with the Assessing Officer to treat it as a bogus investment to earn profit in a short span of time. Therefore, the appeal of the Revenue is devoid of any merit and, accordingly, it is dismissed. 5. In the result, the appeal of the Revenue is dismissed. Order pronounced in the Court on 01 st December 2021 at Ahmedabad. Sd/- Sd/- (WASEEM AHMED) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE-PRESIDENT Ahmedabad, Dated 01/12/2021 *Bt ITA No. 1505/Ahd/2019 ACIT Vs Shri Jagat Pravinbhai Sarabhai AY : 2011-12 3 आदेश क琉 灹ितिलिप अ灡ेिषत/Copy of the Order forwarded to : 1. अपीलाथ牸 / The Appellant 2. 灹瀄यथ牸 / The Respondent. 3. संबंिधत आयकर आयु猴 / Concerned CIT 4. आयकर आयु猴)अपील (/ The CIT(A)- 5. िवभागीय ि ि ि ,आयकर अपीलीय अि करण,/DR,ITAT, Ahmedabad, 6. गाड榁 फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Ahmedabad 1. Date of dictation- ...25.11.2021...... 2. Date on which the typed draft is placed before the Dictating Member ...01.12.2021............ Other member ...01.12.2021.................. 3. Date on which the approved draft comes to the Sr.P.S./P.S. - ...01.12.2021............... 4. Date on which the fair order is placed before the Dictating Member for Pronouncement ...01.12.2021 5. Date on which the file goes to the Bench Clerk...02.12.2021................ 6. Date on which the file goes to the Head Clerk.................................. 7. The date on which the file goes to the Assistant Registrar for signature on the order..................... 8. Date of Despatch of the Order..................