Smt. Payal Agarwal, Kharsawan V. ITO, Ward-2(1), Jamshedpur

ITA 158/RAN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8295 (ITAT-RANCHI)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 04-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AJAY KR
• Keywords: Unexplained cash credit; Capital Gains
• Section: 271(1)(c); 143(3); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A NOS.158&199/RAN/2019 ASSESSMENT YEAR: 2013-14 SMT. PAYAL AGARWAL HOLDING NO.63, WARD NO.2, BAZAR SAHI, KHARSAWAN, SARAIKELA, KHARSAWAN. VS. ITO, WARD-2(1), JSR PAN/GIR NO. : AHXPA4256A ( APPELL ANT ) .. (RESPONDENT) APPELLANT BY SHRI DEVESH PODDAR, ADVOCATE RESPONDENT BY SHRI AJAY KR. ADDL. CIT, DR DATE OF HEARING 05.03.2020 DATE OF PRONOUNCEMENT 05.03.2020 O R D E R S. S. GODARA(ORAL): THESE TWO ASSESSEES APPEALS BOTH FOR ASSESSMENT YEAR 2013-14 ARISE AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS), JAMSHEDPUR DATED 02.01.2019 & 22.02.2019 PASSED IN CASE NO.585/JSR/2017-18 INVOLVING PROCEEDINGS U/S 147 R.W.S 143(3) AND U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT); RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. COMING TO ASSESSEES QUANTUM APPEAL ITA NO.158/RAN/2019, LEARNED COUNSEL REPRESENTING ASSESSEE IS FAIR ENOUGH IN NOT PRESSING FOR THE FORMER SUBSTANTIVE GROUND CHALLENGING VALIDITY OF REOPENING AT THIS STAGE. 3. COMING TO ASSESSEES LATTER SUBSTANTIVE GROUND CHALLENGING BOGUS LONG-TERM CAPITAL GAINS ADDITION OF RS.39,85,066/- AS WELL AS ENHANCEMENT OF RS.1,25,000/- AS BOGUS UNEXPLAINED CASH CREDITS DURING THE COURSE OF ASSESSMENT AS UPHELD IN THE LOWER APPELLATE PROCEEDINGS, THE ASSESSING OFFICER AS WELL AS CIT(A) HOLD THAT KEEPING IN MIND THE CORRESPONDING SCRIPS UPWARD/DOWNWARD ABNORMAL PRICE MOVEMENT COUPLED WITH THE COLLATERAL CIRCUMSTANCES SUFFICIENTLY INDICATE THAT SHE HAD DERIVED BOGUS LONG TERM CAPITAL GAINS. THEY HAVE ALSO APPLIED HONBLE APEX COURTS DECISIONS IN SUMATI DAYAL 214 ITR 801 I.T.A NOS.158&199/RAN/2019 SMT. PAYAL AGARWAL 2 & CIT V/S DURGA PRASAD MORE 82 ITR 540 THAT ANY EXPLANATION TENDERED IN PROCEEDINGS UNDER THE ACT HAVE TO BE CONSIDERED AS PER HUMAN PROBABILITIES BY REMOVING ALL BLINKERS. LEARNED COUNSELS ONLY PLEA DURING THE COURSE OF HEARING IS THAT THE CBDT HAS RECENTLY ISSUED A STANDARD OPERATING PROCEDURE (SOP) IN THE YEAR 2019 FOR EXAMINING SUCH ALLEGED SHARE TRANSACTIONS ON ALL FACTUAL/LEGAL ASPECTS. LEARNED DEPARTMENTAL REPRESENTATIVES CASE ON THE OTHER HAND IS THAT THE ASSESSEE HAS FAILED TO PROVE GENUINENESS & CREDITWORTHINESS OF THE IMPUGNED SHARE TRANSACTIONS. FACED WITH THIS SITUATION AND MORE PARTICULARLY KEEPING IN MIND THE FACT THAT THE BOARD HAS ITSELF PRESCRIBED AN EXTENSIVE EXERCISE TO THE FIELD AUTHORITIES AS WELL WHILST DEALING WITH THE CASE OF ALLEGED BOGUS SHARE TRANSACTIONS. I DEEM IT APPROPRIATE TO RESTORE THE INSTANT ISSUE BACK TO CIT(A) FOR AFRESH ADJUDICATION AS PER LAW. THE ASSESSEE LATTER GRIEVANCE ON MERIT AND THE INSTANT QUANTUM APPEAL ITA 158/RAN/2019 IS ACCEPTED FOR STATISTICAL PURPOSES. 4. THIS ASSESSEES APPEAL ITA NO.158/RAN/19 IS ALLOWED FOR STATISTICAL PURPOSES. 5. THE ASSESSEES PENALTY APPEAL ITA NO.199/RAN/19 ALSO FOLLOWS SUIT BEING CONSEQUENTIAL IN NATURE. 6. THIS ASSESSEES TWO APPEALS ITA NO.158&199/RAN/19 ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 05.03.2020. SD/- (S. S. GODARA) JUDICIAL MEMBER DATED: 05.03.2020. RS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) - 5. THE DR, ITAT, RANCHI 6. GUARD FILE BY ORDER SR. P.S., ITAT, RANCHI (ON TOUR)