Kiran Devi Jain, CHENNAI V. ITO Non Corporate Ward 5(1), CHENNAI

ITA 1850/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4006 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 01-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: D ANAND

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1849/CHNY/2018 ( )( / ASSESSMENT YEAR : 2014-15 M/S KANHAIYALAL & SONS (HUF), NO.39, KALATHIPILLAI 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.1850/CHNY/2018 ( )( / ASSESSMENT YEAR : 2014-15 SMT. KIRAN DEVI JAIN, NO.39, KALATHIPILLAI STREET, SOWCARPET, CHENNAI - 600 079. PAN : AALPK 2359 K V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI D. ANAND, ADVOCATE -.+, / 0 / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT 1 / 2$ / DATE OF HEARING : 17.01.2019 34) / 2$ / DATE OF PRONOUNCEMENT : 06.02.2019 2 I.T.A. NO.1849/CHNY/18 I.T.A. NO.1850/CHNY/18 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : BOTH THE APPEALS OF INDEPENDENT ASSESSEES ARE DIR ECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-5, CHENNAI, DATED 20.03.2018 AND PERTAIN TO ASSESSMENT YEAR 201 4-15. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS REJEC TION OF CLAIM OF THE ASSESSEES UNDER SECTION 10(38) OF THE INCOME-TAX AC T, 1961 (IN SHORT 'THE ACT'). 3. SHRI D. ANAND, THE LD.COUNSEL FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE A SSESSEES UNDER SECTION 10(38) OF THE ACT ON THE BASIS OF THE INFOR MATION SAID TO BE RECEIVED FROM THE INVESTIGATION WING OF THE DEPARTM ENT AT KOLKATA. ACCORDING TO THE LD. COUNSEL, THE COPIES OF THE INV ESTIGATION REPORT SAID TO BE RECEIVED FROM KOLKATA AND OTHER ENQUIRIES SAID T O BE CONDUCTED BY THE ASSESSING OFFICER WERE NOT FURNISHED TO THE ASSESSE ES. IT IS NOT KNOWN HOW THE COMPANY IN WHICH THE ASSESSEES INVESTED IS CONSIDERED TO BE PENNY STOCK COMPANY? THEREFORE, THE LD.COUNSEL SUB MITTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSE SSING OFFICER WITH A DIRECTION TO FURNISH A COPY OF THE INVESTIGATION RE PORT SAID TO BE RECEIVED FROM THE INVESTIGATION WING OF THE DEPARTMENT AT KO LKATA AND TO DECIDE THE ISSUE AFRESH THEREAFTER IN ACCORDANCE WITH LAW. THE LD.COUNSEL HAS 3 I.T.A. NO.1849/CHNY/18 I.T.A. NO.1850/CHNY/18 ALSO PLACED HIS RELIANCE ON THE ORDER OF THIS TRIBU NAL IN SHRI ARAVIND NANDLAL KHATRI IN I.T.A. NO.2035/CHNY/2018 DATED 03 .12.2018. 4. WE HEARD SHRI AR.V. SREENIVASAN, THE LD. DEPARTM ENTAL REPRESENTATIVE ALSO. ADMITTEDLY, THE ASSESSING OFF ICER DISALLOWED THE CLAIM OF THE ASSESSEES ON THE BASIS OF THE INFORMAT ION SAID TO BE RECEIVED FROM THE INVESTIGATION WING OF THE DEPARTMENT AT KO LKATA WITH REGARD TO INVESTMENT MADE BY THE ASSESSEES IN THE PENNY STOCK COMPANY. IT IS NOT IN DISPUTE THAT A COPY OF THE INVESTIGATION REPORT SAID TO BE RECEIVED FROM KOLKATA WAS NOT FURNISHED TO THE ASSESSEE. MOREOVE R, DETAILS OF THE ENQUIRIES SAID TO BE MADE BY THE ASSESSING OFFICER WERE ALSO NOT FURNISHED TO THE ASSESSEES. IN THOSE CIRCUMSTANCES , THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSING OFFICER H AS TO RECONSIDER THE ISSUE AFRESH AFTER FURNISHING THE MATERIAL RELIED U PON BY THE ASSESSING OFFICER. ACCORDINGLY, THE ORDERS OF BOTH THE AUTHO RITIES BELOW ARE SET ASIDE AND THE ENTIRE ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL BRING ON RECO RD THE ROLE OF THE ASSESSEES IN PROMOTING THE COMPANY AND THE RELATION SHIP OF THE ASSESSEES, IF ANY WITH THE PROMOTERS, ROLE OF THE A SSESSEES IN INFLATING THE PRICE OF SHARES, ETC. THE ASSESSING OFFICER SH ALL ALSO FURNISH A COPY OF THE INVESTIGATION REPORT SAID TO BE RECEIVED FRO M THE INVESTIGATION WING OF THE DEPARTMENT AT KOLKATA AND OTHER MATERIALS IF ANYTHING IN HIS 4 I.T.A. NO.1849/CHNY/18 I.T.A. NO.1850/CHNY/18 POSSESSION AND THEREAFTER DECIDE THE ISSUE AFRESH I N ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE A SSESSEES. 5. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEES ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 6 TH FEBRUARY, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 6 TH FEBRUARY, 2019. KRI. / -278 98)2 /COPY TO: 1. +, /APPELLANTS 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A)-5, CHENNAI 4. PRINCIPAL CIT-9, CHENNAI 5. 8; -2 /DR 6. <( = /GF.