PUSHPA BAI, CHENNAI V. ITO NON CORPORATE WARD 6 (1), CHENNAI

ITA 1752/CHNY/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1872 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 23-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R PADMANABHAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.1750/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 SHRI RAKESH KUMAR KUNDANMALJI JAIN, 44/40, E.K. AGRAHARAM, PARK TOWN, CHENNAI - 600 003. PAN : AAEPR 5870 M V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.1751/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 SHRI RANJIT KUMAR KUNDANMAL (HUF), 44/39, E.K. AGRAHARAM, PARK TOWN, CHENNAI - 600 003. PAN : AACHR 0071 C V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.1752/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 SMT. PUSHPA BAI, 81, AUDIAPPA NAICKEN STREET, SOWCARPET, CHENNAI - 600 079. PAN : AAHPP 5053 B V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) 2 I.T.A. NOS.1750 TO 1757/CHNY/18 ./ ITA NO.1753/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 MS. KAJAL JAIN, 44/39, E.K. AGRAHARAM, PARK TOWN, CHENNAI - 600 003. PAN : AAKPJ 2012 R V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.1754/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 KANHAYALAL JAIN & SONS (HUF), 39, KALATHI PILLAI STREET, SOWCARPET, CHENNAI - 600 079. PAN : AAAHS 6895 P V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.1755, 1756 & 1757/CHNY/2018 ( )( / ASSESSMENT YEARS : 2010-11, 2012-13 & 2013-14 SHRI S. KANHAYALAL JAIN, 39, KALATHI PILLAI STREET, SOWCARPET, CHENNAI - 600 079. PAN : AAIPJ 1171 H V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANTS BY : SHRI R. PADMANABHAN, CA -.+, / 0 / RESPONDENT BY : SHRI GURU BASHYAM, JCIT 1 / 2% / DATE OF HEARING : 05.11.2018 3') / 2% / DATE OF PRONOUNCEMENT : 16.11.2018 3 I.T.A. NOS.1750 TO 1757/CHNY/18 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE APPEALS FILED BY FIVE INDEPENDENT ASSESSEES ARE DIRECTED AGAINST THE RESPECTIVE ORDERS OF THE COMMI SSIONER OF INCOME TAX (APPEALS) -5, CHENNAI. SINCE COMMON ISS UE ARISES FOR CONSIDERATION IN ALL THESE APPEALS, WE HEARD THESE APPEALS TOGETHER AND DISPOSING OF THE SAME BY THIS COMMON ORDER. 2. THE ASSESSEES CLAIM FOR EXEMPTION UNDER SECTION 10(38) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'), WHIC H WAS NOT ALLOWED BY THE ASSESSING OFFICER AFTER REFERRING TO THE INV ESTIGATION REPORT SAID TO BE RECEIVED FROM INVESTIGATION WING OF THE DEPARTMENT AT KOLKATA. 3. WE HEARD SHRI R. PADMANABHAN, THE LD. REPRESENTA TIVE FOR THE ASSESSEES AND SHRI GURU BASHYAM, THE LD. DEPART MENTAL REPRESENTATIVE. ADMITTEDLY, THE INVESTIGATION REPO RT SAID TO BE RECEIVED BY THE ASSESSING OFFICER FROM KOLKATA WAS NOT FURNISHED TO THE ASSESSEES. MOREOVER, THE STATEMENT SAID TO BE RECORDED FROM SHRI ASHOK KUMAR KAYAN AT KOLKATA WAS ALSO NOT FURN ISHED TO THE ASSESSEES. THE REVENUE CLAIMS THAT THE ASSESSEES H AVE INVESTED 4 I.T.A. NOS.1750 TO 1757/CHNY/18 IN PENNY STOCK COMPANIES. IT IS NOT KNOWN HOW THE REVENUE CLAIMS THAT THE ASSESSEES INVESTED IN PENNY STOCK COMPANIE S? HOW THE PENNY STOCK COMPANIES ARE ALLOWED TO ISSUE PUBLIC S HARES SO AS TO INVITE THE GENERAL PUBLIC FOR INVESTMENT? IT IS AL SO NOT KNOWN HOW THIS KIND OF COMPANIES ARE ALLOWED TO BE LISTED IN STOCK EXCHANGE? THEREFORE, AN INVESTIGATION HAS TO BE MADE BY THE A SSESSING OFFICER. THE ASSESSING OFFICER SHALL FURNISH A COP Y OF INVESTIGATION REPORT SAID TO BE RECEIVED FROM THE INVESTIGATION W ING OF THE DEPARTMENT AT KOLKATA AND A COPY OF STATEMENT RECOR DED FROM SHRI ASHOK KUMAR KAYAN AT KOLKATA TO THE ASSESSEES. ACC ORDINGLY, THE ORDERS OF BOTH AUTHORITIES BELOW ARE SET ASIDE AND THE ASSESSING OFFICER IS DIRECTED TO FURNISH COPIES OF THE INVEST IGATION REPORT RECEIVED FROM THE DEPARTMENT AT KOLKATA AND THE STA TEMENTS RECORDED AT KOLKATA AND AT CHENNAI AND ALSO TO MAKE A THOROUGH INVESTIGATION HOW THE PENNY STOCK COMPANIES ARE ALL OWED TO ISSUE PUBLIC SHARES AND BRING ON RECORD THE ACTION TAKEN AGAINST THE OFFICERS WHO ARE RESPONSIBLE FOR ALLOWING SUCH PENN Y STOCK COMPANIES TO ISSUE PUBLIC SHARES. THE ASSESSING OF FICER SHALL ALSO EXAMINE WHETHER THESE COMPANIES ARE LISTED IN STOCK EXCHANGE. IF SO, WHAT ARE THE ACTIONS TAKEN FOR DELISTING SUCH C OMPANIES FROM STOCK EXCHANGE. THE ASSESSING OFFICER SHALL EXAMIN E ALL THESE 5 I.T.A. NOS.1750 TO 1757/CHNY/18 ASPECTS AND BRING ON RECORD ALL MATERIAL FACTS AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVI NG A REASONABLE OPPORTUNITY TO THE ASSESSEES. 4. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSE SSEES ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 16 TH NOVEMBER, 2018 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 16 TH NOVEMBER, 2018. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANTS 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-5, CHENNAI-34 4. PRINCIPAL CIT-9, CHENNAI 5. 7: -2 /DR 6. ;( < /GF.