Sh. Arun Kumar Maheshwari, Panchkula V. ACIT, Circle, Panchkula

ITA 162/CHANDI/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1339 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 11-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SUDARSHAN
• Keywords: Opportunity of being heard; Cost of acquisition; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH A, CHANDIGARH .., !' '# $, % &' BEFORE: SHRI. N.K.SAINI, VP & SHRI , SANJAY GARG, J M ITA NO. 162/CHD/2019 ASSESSMENT YEAR : 2015-16 SHRI ARUN MAHESHWARI #295, SECTOR 7, PANCHKULA THE ASSTT. CIT PANCHKULA CIRCLE PANCHKULA PAN NO: AAXPM6701F APPELLANT RESPONDENT !' ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE #!' REVENUE BY : SHRI ARVIND SUDARSHAN, SR. DR $ %! & DATE OF HEARING : 10/12/2019 '()*! & DATE OF PRONOUNCEMENT : 10/12/2019 &(/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT. 03/01/2019 OF LD. CIT(A), PANCHKULA. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L : 1. THAT THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS IN UPHOLDING THE ADDITION OF RS. 2,79,238/- DISALLOWING THE PURCHASE COST OF SHARES AS DECLARED WHICH IS ARBITRARY AND UNJUSTIFIED. 2. THAT IT IS THE SETTLED PRINCIPLE THAT COST IS ALWAY S DEDUCTIBLE WHILE ARRIVING AT THE ACTUAL INCOME AND AS SUCH UPHOLDING OF THE A DDITION IS ARBITRARY AND UNJUSTIFIED. 3. THAT THE ORDER OF THE LD. CIT(A) IS ERRONEOUS, ARBI TRARY, OPPOSED TO THE FACTS OF THE CASE AND THUS UNTENABLE. 2 3. FROM THE ABOVE GROUNDS IT WOULD BE CLEAR THAT TH E ONLY GRIEVANCE OF THE ASSESSEE RELATES TO THE SUSTENANCE OF ADDITION OF R S. 2,79,238/- DISALLOWED BY THE A.O. ON ACCOUNT OF PURCHASE COST OF SHARES. 4. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT AN IDENTICAL ISSUE HAVING SIMILA R FACTS HAS ALREADY BEEN ADJUDICATED BY ITAT CHANDIGARH BENCH B IN THE CA SE OF FAMILY MEMBERS OF THE ASSESSEE AND THAT THE LD. CIT(A) HAS PASSED THE COMMON ORDER IN THE CASE OF THE ASSESSEE AND HIS FAMILY MEMBERS WHICH WAS SU BJECT MATTER TO THE ASSESSEES APPEAL IN ITA NO. 159/CHD/2019 AND 160/C HD/2019 FOR THE A.YS. 2015- 16 IN THE CASES OF SMT. SHASHI MAHESHWARI AND SMT. SHARMILA MAHESHWARI VS. ACIT RESPECTIVELY, COPY OF THE SAID ORDER DT. 26/08 /2019 WAS FURNISHED WHICH IS PLACED ON RECORD. 5. LD. DR ALTHOUGH SUPPORTED THE ORDERS OF THE AUTH ORITIES BELOW BUT COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PA RTIES AND THE MATERIAL AVAILABLE ON THE RECORD, IT IS NOTICED THAT AN IDEN TICAL ISSUE HAVING SIMILAR FACTS HAS ALREADY BEEN DECIDED BY THE ITAT CHANDIGARH BEN CH B IN ITA NO. 159/CHD/2019 AND 160/CHD/2019 IN THE CASE OF FAMIL Y MEMBERS OF THE ASSESSEE NAMELY SMT. SHASHI MAHESHWARI AND SMT. SHARMILA MAH ESHWARI WHEREIN THE RELEVANT FINDINGS HAVE BEEN GIVEN IN PARA 9 OF THE ORDER DT. 26/08/2019 WHICH READ AS UNDER: 9. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE, THESE FACTS ARE NOT CLEAR AS TO WHETHER THE ASSESSEE PURCHASED THE SHARES THROUG H IPO AND AS TO WHETHER THE ORDER DT. 29/06/2015 OF THE SEBI WAS CONFRONTED TO THE ASSESSEE. WE THEREFORE, DEEM IT APPROPRIATE TO SET ASIDE THIS ISSUE BACK TO THE FILE OF THE A.O. TO BE ADJUDICATED AFRESH, IN ACCORDANCE WITH LAW AFTER PR OVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3 SO RESPECTFULLY FOLLOWING THE AFORESAID REFERRED TO ORDER THIS ISSUE IS SET ASIDE TO THE FILE OF THE A.O. TO BE ADJUDICATED AFRESH IN AC CORDANCE WITH LAW AS DIRECTED IN THE AFORESAID REFERRED TO ORDER DT. 26/08/2019. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 10/12/2019 ) SD/- SD/- '# $ .., (SANJAY GARG ) ( N.K. SAI NI) % &'/ JUDICIAL MEMBER / VICE PRESIDENT AG DATE: 10/12/2019 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE (+ $ BY ORDER, ; # ASSISTANT REGISTRAR