ISHWAR RIJHUMAL PUJARA, NEW DELHI V. ACIT, CIRCLE 30(1), NEW DELHI

ITA 2058/DEL/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5195 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-11-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 18-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUNIL KHARBANDA
• Section: 147; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.2058/DEL/2023 Assessment Year 2011-12 Shri Ishwar R Pujara, S-145 Greater Kailash Part-II, New Delhi. Vs. ACIT, Circle-30(1), Delhi TAN/PAN: AKKPP3651L (Appellant) (Respondent) Appellant by: Shri Sunil Kharbanda, CA Ms. Jyoti Gilotra, CA Respondent by: Shri Om Prakash, Sr.DR Date of hearing: 22 11 2023 Date of pronouncement: 22 11 2023 O R D E R PER PRADIP KUMAR KEDIA-A.M. : The ca pt ioned appeal has been fi l ed b y t he assessee agai nst th e orde r of the C o mmi ssi oner of I nco me Ta x ( Appeals), Nat ional Facel ess Appeal Cent re, Delhi ( ‘CI T( A) ’ i n short ) dat ed 31. 05. 2023 ar isi ng f ro m t he assess me nt order dat ed 25. 12. 2018 passed b y the Assessing Offi cer ( AO) u nder Secti on 143( 3) r. w. Sect io n 147 of t he I ncome Tax Act , 1961 ( the Act ) con cer nin g AY 2011-12. 2. As per t he gr ounds of appeal , the a ssessee has chall enged the a ddi ti on of Rs. 23, 67,786/- as unexpl ai ned invest ment under Secti on 68 of the Act i n rel at i on t o t ransacti on i n scri p na mel y, M/ s. SVC Resourc es Lt d. I.T.A. No.8689/Del/2019 2 3. When t he mat t er was call ed for hear ing, t he l d. c ouns el for the assessee submi t ted t hat the assessee has ent er ed int o purchase tra nsacti on of t he scr ip na mel y, M/ s. SVC Resources Lt d. aggregat ing t o 1, 45, 000 share s at an aggregat e pur chase consi derat i on of R s. 23, 67, 786/ - duri ng t he Fi nancial Year 20 10- 11 relevant t o Assess me nt Yea r 2011- 12 in quest ion f r o m regist er ed sha re br oker S yst e mat ic Shar es and St ock Indi a Lt d. The ld. counsel sub mi tt ed t hat as agai nst the tot al purchase of 1, 45, 000 shar es, the assessee has sol d onl y 87, 301 s hares and der ived a meage r pr ofi t of Rs. 52, 145. 93 whi ch was dul y di sclosed in t he r etur n of i nco me. Remai ning 57699 shares of the aforesai d scr ip were not sol d dur ing t he ye ar at al l and l yi ng in the closi ng st ock. T he Assessi ng O ffi cer has perfunctor il y reli ed upon t he m odus opera ndi bas ed on S EBI re port whi ch was for t he peri od u pto Nove mber, 20 10 w her eas th e t ra nsacti ons i n the inst ant case have been execut ed much l at er t o such r epor t. Int ri guin gl y, th e Assessi ng O ff i cer has added the ent ir e purchase tr ansact ion of Rs. 23, 67, 786/ - t hat t oo, wit h t he ai d of Secti on 68 of t he Act whic h i s not a ppli cabl e at t he f ir st inst ance. On being inquir ed b y t he Benc h, t he ld. counsel fairl y ad mit ted t hat t he or der passed b y t he CI T(A) i s ex-part e owi ng to no n-at t enda nce on behal f of the assessee. The ld. counsel thus sought an appropr i at e r el ief i n t he mat ter. 4. The l d. DR f or the Revenue, on the ot her hand, rel ied upon the or ders passed b y t he lower aut hor it ies and s ub mi t t ed that i t was i ncu mbent u pon t he assessee to at t end t he pr oceedi ngs bef ore t he CI T( A) and the ref ore, t he mat t er shoul d be r eferr ed bac k to t he CI T( A ), if t he Tri bunal so consi ders i t expedient . I.T.A. No.8689/Del/2019 3 5. I ha ve caref ull y consi der ed the ri vals su b mi ssi ons and per used t he assessment or der and t he f irst appel late order. 6. The ld. counsel for t he assessee has pai nstaki ngl y t ook me through t he natu re of tra nsacti on as discerni bl e fro m t he assess ment or der and t he mat eri al pl aced on record. T her e app ears t o be apparent fal l ac y i n t he case ma de out b y t he Assessi ng Off icer agai nst the assessee. The Assessing Offi cer has added the purchase consi de rat ion whi l e rel yi ng upon t he al leged manipulat i ons i n t he prof it s der ive d b y c ert ain class of invest ors as note d on behalf of t he SEBI r eport . If that i s so, the result ant capi tal gains on sale of sh ares can possibl y be under scanner . The Assessing O ffi cer has not cast doubt on t he source of pur chase of shares per se but howe ver has re sort ed t o addit ions of t he ent ir e purchase cost t hat t oo under Se ct i on 68 of the Act . Ostensibl y secti on 68 i s not appli ca ble at the fir st inst ance f or the si mpl e r eason th at purc hase cost whi ch is subj ect mat t er of addit ion i s an outfl ow as a gai nst t he i nflo w whic h co mes un der the swee p of Sect ion 68 of t he Act . The wh ole basi s of t he addi ti on b y t he Assessing Of fi cer t hus app ears t o be based on an unf ounded pre mi se. 7. Havi ng not ed su ch apparent fal l ac y, I si mul t ane ousl y have to agree wi t h the sub mi ssi on ma de on behal f of the Revenue t hat the st at utor y r e med y avail able bef ore C IT( A) c ann ot be b ye - passed. It was t he dut y o f t he assessee t o at tend the pr oceedi ngs bef ore t he CI T(A) for di sposal of appeal. 7. Under t he circ u mst ances, I a m const raint t o r estor e the ma ter back to t he fi l e of the CIT( A) for disposal of t he appeal i n I.T.A. No.8689/Del/2019 4 accor dance wi th law af ter gi vi ng pr oper opport uni t y t o t he assessee. 8. I n the result , the appeal of t he assessee i s al lowed f or stati sti cal purpose s. Order pronounced in the open Court on 22/11/2023 Sd/- [PRADIP KUMAR KEDIA] ACCOUNTANT MEMBER DATED: /11/2023 Prabhat