ACIT, CIRCLE- 4(2), NEW DELHI V. NAVEL KISHORE GUPTA, NEW DELHI

ITA 159/DEL/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0353 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2014-2015
• Appeal Filed On: 05-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Income from undisclosed sources
• Section: 13

Judgement Text

ITA NO:- 159/DEL/2018 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMB ER ITA NO:- 159/DEL/2018 ( ASSESSMENT YEAR: 2014-15) ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-4(2), NEW DELHI VS . SHRI. NAVEL KISHORE GUPTA, AG-402, SHALIMAR BAGH, DELHI-110006 APPELLANT RESPONDENT PAN NO: AET PG1792C REVENUE BY : MS. RAKHI VIMAL, SR. DR ASSESSEE BY : SHRI. SATYAJEET GOEL, CA PER ANADEE NATH MISSHRA, AM (A) THE AFOREMENTIONED APPEAL IN THE CASE OF THE REVEN UE IS TAKEN UP TOGETHER FOR THE SAKE OF CONVENIENCE AND BREVITY; A ND ARE HEREBY DISPOSED OFF THROUGH THIS ORDER. GROUNDS TAKEN IN THIS APPE AL OF REVENUE ARE AS UNDER: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION M ADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT OF RS. 1,68,09,388/- U/S 68 OF THE I.T. ACT, 1961 WITHOUT APPRECIATING THE FACT THAT: A) THE FINANCIAL RESULT AND GRAPH SHOWING ARTIFICIAL I NCREASE OF SHARE ITA NO:- 159/DEL/2018 PAGE 2 OF 4 PRICE OF M/S ECO FRIENDLY FOOD PROCESSING PART LIMIT ED WHICH HAS BEEN EVIDENCED FROM THE TRADING DETAILS VERIFIED BY SEBI ON BSE EXCHANGE.] B) THE BENEFIT OF LTCG WAS PROVIDED TO PREFERENTIAL AL LOTEES/PRE IPO TRANSFEREES SO AS TO CONVERT UNACCOUNTED INCOME INT O ACCOUNTED ONE WITH NO PAYMENT OF TAXES AS LTCG IS TAX EXEMPT. C) THE ASSESSEE HAS PURCHASED SHARES OF M/S ECO FRIENDL Y FOOD PROCESSING PARK LIMITED AT RS. 99,000/- DURING FY 20 12-13 AND THE SAME WAS SOLD AT RS. 1,69,08,388/- DURING FY 2014-15 WHICH IS 16979% OF RETURNS WHEREAS THE NORMAL RETURNS ON INV ESTMENT ARE 7.80% FOR FY 2012-13 AND 18.70% FOR FY 2014-15 FOR BSE/SENSEX. D) THE STRONG PERFORMANCE OF M/S ECO FRIENDLY FOOD PROC ESSING PARK LTD WITHOUT HAVING ANY SUPPORTING FINANCIAL RESULTS ITSELF IS A CIRCUMSTANTIAL EVIDENCE TO SHOW THAT LTCG IS NOT GE NUINE. 2. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THE APPEAL. (B) AT THE TIME OF HEARING, AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE INFORMED US THAT THE ASSESSEE HAS OPTED TO SETTLE T HE AFOREMENTIONED APPEALS UNDER VIVAD SE VISHWAS SCHEME, 2020 (VSVS, FOR SHORT) AND THA T THE ASSESSEE HAS ALREADY FILED THE RELEVANT FORMS. THE LD. COUNSEL FOR ASSESSEE ALS O DREW OUR ATTENTION TO LETTER DATED 13 TH MARCH, 2021 FILED IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) GIVING INTIMATION FOR THE SAME, AND REQUESTING TO WITHDRAW THIS APPEA L. (B.1) AT THE TIME OF HEARING BEFORE US, THE LD. COUNSEL F OR ASSESSEE AS WELL AS THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE (LD. SR . DR, FOR SHORT) SUBMITTED BEFORE US THAT THIS APPEAL MAY BE TREATED AS WITHDRAWN AND MA Y BE DISMISSED ON ACCOUNT OF THE AFORESAID VSVS. AFTER DUE CONSIDERATION, AND IN V IEW OF THE FOREGOING; AND AS BOTH SIDES HAVE AGREED TO THIS; WE ARE OF THE VIEW THAT THIS A PPEAL HAS BECOME INFRUCTUOUS, AND WE ITA NO:- 159/DEL/2018 PAGE 3 OF 4 TREAT THIS APPEAL AS WITHDRAWN ON ACCOUNT OF THE AF ORESAID VSVS. ACCORDINGLY, THIS APPEAL HAVING BECOME INFRUCTUOUS, ARE HEREBY DISMISSED AS WITHDRAWN, SUBJECT TO SETTLEMENT OF THE DISPUTES IN THE APPEALS UNDER THE AFORESAID VSV S. (C) BEFORE WE PART, WE HEREBY CLARIFY, BY WAY OF AB UNDANT CAUTION, THAT IF FOR SOME REASON THE DISPUTES UNDER THESE APPEALS BEFORE US ARE NOT SETTLED UNDER THE AFORESAID VSVS, THEN THE ASSESSEE WILL BE AT LIBERTY TO APPRO ACH ITAT FOR RESTORATION OF THESE APPEALS, IN ACCORDANCE WITH LA W. (D) IN THE RESULT, THE APPEAL IS DISMISSED. THIS ORDER HAS BEEN ALREADY PRONOUNCED ON 15 TH MARCH, 2021 IN OPEN COURT, IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES; AFTE R CONCLUSION OF THE HEARING. SD/- SD/- (SUDHANSHU SRIVASTAVA) (ANADEE NAT H MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 15/03/2021 SH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO:- 159/DEL/2018 PAGE 4 OF 4