Ketan Dineshchandra Mehta, CHENNAI V. ITONCR 11(3), Chennai

ITA 2318/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8327 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 07-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V M MAHIDAR
• Assessee Lawyers: M KARUNAKARAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , ! .#$#%, ' !( BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ./ ITA NO.2317/CHNY/2018 % *% / ASSESSMENT YEAR : 2014-15 SHRI SHIYAL VIMAL KUMAR, 1/504, SOUTH AVENUE ROAD, MUTHAMIZH NAGAR, KODUNGAIYUR, CHENNAI - 600 118. PAN : CTNPS 7792 B V. THE INCOME TAX OFFICER, NON CORPORATE WARD 6(4), CHENNAI - 600 034. (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : SHRI M. KARUNAKARAN, ADVOCATE ./,- 0 1 / RESPONDENT BY : SHRI V.M. MAHIDAR, JCIT 2 0 3' / DATE OF HEARING : 20.12.2018 45* 0 3' / DATE OF PRONOUNCEMENT : 02.01.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -5, CHENNA I, DATED 29.06.2018 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2 I.T.A. NO.2317/CHNY/18 2. SHRI M. KARUNAKARAN, THE LD.COUNSEL FOR THE ASSE SSEE, SUBMITTED THAT THE ASSESSEE PURCHASED 25000 SHARES OF KAILASH AUTO FINANCE LTD. ON SALE OF SAID SHARES, ACCORDIN G TO THE LD. COUNSEL, THE ASSESSEE CLAIMED LONG TERM CAPITAL GAI NS OF 9,14,416/-. THE ASSESSEE HAS ALSO CLAIMED EXEMPTIO N UNDER SECTION 10(38) OF THE INCOME-TAX ACT, 1961 (IN SHOR T 'THE ACT'). HOWEVER, ACCORDING TO THE LD. COUNSEL, THE ASSESSIN G OFFICER ON THE BASIS OF INFORMATION SAID TO BE RECEIVED FROM THE D IRECTORATE OF INVESTIGATION AT KOLKATA, FOUND THAT KAILASH AUTO F INANCE LTD. IS A PENNY STOCK COMPANY, HENCE, THE ASSESSEE IS NOT ELI GIBLE FOR EXEMPTION UNDER SECTION 10(38) OF THE ACT. PLACING RELIANCE ON THE ORDER OF THIS TRIBUNAL IN MR. ANIL KUMAR SHIYAL V. ITO IN I.T.A. NO.2066/CHNY/2018 DATED 03.12.2018, THE LD.COUNSEL SUBMITTED THAT ON IDENTICAL CIRCUMSTANCE, THIS TRIBUNAL REMIT TED BACK THE MATTER TO THE FILE OF THE ASSESSING OFFICER. 3. WE HEARD SHRI V.M. MAHIDAR, THE LD. DEPARTMENTAL REPRESENTATIVE ALSO. IT IS NOT IN DISPUTE THAT THE INVESTIGATION REPORT OF THE DIRECTORATE OF INVESTIGATION AT KOLKATA WAS RELIED UPON BY THE ASSESSING OFFICER AND THE CIT(APPEALS) TO DENY EXEM PTION UNDER SECTION 10(38) OF THE ACT. THE SAID INVESTIGATION REPORT WAS NOT 3 I.T.A. NO.2317/CHNY/18 FURNISHED TO THE ASSESSEE. THEREFORE, THIS TRIBUN AL IS OF THE CONSIDERED OPINION THAT THE MATTER NEEDS TO BE RE-E XAMINED BY THE ASSESSING OFFICER AFTER FURNISHING ALL THE DOCUMENT S RELIED UPON BY THE ASSESSING OFFICER AND THE CIT(APPEALS). ACCORD INGLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE EN TIRE ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER IN THE LIGHT OF THE MATERIAL THAT MAY BE FILED BY THE ASSESSEE. THE ASSESSING OFFICE R SHALL ALSO FURNISH ALL THE COPIES OF THE MATERIAL INCLUDING TH E INVESTIGATION REPORT SAID TO BE RECEIVED FROM THE DIRECTORATE OF INVESTIGATION, KOLKATA AND THEREAFTER DECIDE THE ISSUE AFRESH IN A CCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE A SSESSEE. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 2 ND JANUARY, 2019 AT CHENNAI. SD/- SD/- ( !.#$#% ) ( . . . ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 2 ND JANUARY, 2019. 4 I.T.A. NO.2317/CHNY/18 KRI. 0 .389 :9*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 ;3 () /CIT(A)-5, CHENNAI-34 4. PRINCIPAL CIT-9, CHENNAI 5. 9< .3 /DR 6. =% > /GF.