Madhubala Jain, CHENNAI V. ITO Non Corporate Ward 9(2), CHENNAI

ITA 2373/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 2463 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 17-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: D ANAND

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !' .$%$&, ( ') BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ./ ITA NO.2373/CHNY/2018 & +& / ASSESSMENT YEAR : 2013-14 SMT. MADHUBALA JAIN, NO.5D, SHATRUNJAY APARTMENTS, 42/57 VEPERY HIGH ROAD, VEPERY, CHENNAI - 600 007. PAN : AAFPJ 2677 R V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 9(2), CHENNAI - 600 006. (-./ APPELLANT) (/0-./ RESPONDENT) -. 1 2 / APPELLANT BY : SHRI D. ANAND, ADVOCATE /0-. 1 2 / RESPONDENT BY : SHRI B. SAGADEVAN, JCIT 3 1 4( / DATE OF HEARING : 12.02.2019 56+ 1 4( / DATE OF PRONOUNCEMENT : 07.03.2019 / 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) -10, CHENN AI, DATED 08.06.2018 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2 I.T.A. NO.2373/CHNY/18 2. SHRI D. ANAND, THE LD.COUNSEL FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSEE HAS TRADED IN SHARES OF BLUE CIRC LE SERVICES LTD. ON SALE OF SAID SHARES, ACCORDING TO THE LD. REPRES ENTATIVE, THE ASSESSEE CLAIMED LONG TERM CAPITAL GAINS OF 11,76,820/-. THE ASSESSEE HAS ALSO CLAIMED EXEMPTION UNDER SECTION 1 0(38) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). HOWEVER , ACCORDING TO THE LD. COUNSEL, THE ASSESSING OFFICER ON THE BASIS OF INFORMATION SAID TO BE RECEIVED FROM THE DIRECTORATE OF INVESTIGATIO N AT KOLKATA, FOUND THAT M/S BLUE CIRCLE SERVICES LTD. IS A PENNY STOCK COMPANY, HENCE, THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION UNDER SE CTION 10(38) OF THE ACT. 3. WE HEARD SHRI B. SAGADEVAN, 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 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 3 I.T.A. NO.2373/CHNY/18 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 7 TH MARCH, 2019 AT CHENNAI. SD/- SD/- ( !'.$%$& ) ( . . . ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) ( / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 7 TH MARCH, 2019. KRI. 4 I.T.A. NO.2373/CHNY/18 1 /49: ;:+4 /COPY TO: 1. -. /APPELLANT 2. /0-. /RESPONDENT 3. 3 <4 () /CIT(A)-10, CHENNAI-34 4. PRINCIPAL CIT-7, CHENNAI 5. := /4 /DR 6. >& ? /GF.