Sri Aloke Kumar Ghosh, Paschim Medinipur V. A.C.I.T.,Circle-38, Paschim Midnapore

ITA 2402/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7411 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 06-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Deemed dividend
• Section: 143(3); 2(22)(e)

Judgement Text

ITA NO. 2402/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI ALOKE KUMAR GHOSH & ITA NO. 2403/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI PARTHA SARATHI MONDAL 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A. NO. 2402/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI ALOKE KUMAR GHOSH,............................ ......................................APPELLANT C/O. M/S. SALARPURIA JAJODIA & CO., 3 RD FLOOR, 7, CHITTARANJAN AVENUE, KOLKATA-700072 [PAN:AGGPG2782D] -VS.- ASSISTANT COMMISSIONER OF INCOME TAX,.............. ...........................RESPONDENT CIRCLE-38, MIDNAPORE, M-15, BIDHAN NAGAR, PASCHIM MIDNAPORE-721101 & I.T.A. NO. 2403/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI PARTHA SARATHI MONDAL,........................ .......................................APPELLANT C/O. M/S. SALARPURIA JAJODIA & CO., 3 RD FLOOR, 7, CHITTARANJAN AVENUE, KOLKATA-700072 [PAN:ADQRM0319R] -VS.- ASSISTANT COMMISSIONER OF INCOME TAX,.............. ...........................RESPONDENT CIRCLE-38, MIDNAPORE, BAIJAYANTI APARTMENT, RABINDRA NAGAR, PASCHIM MIDNAPORE-721101 APPEARANCES BY: SHRI S. JHAJHARIA, ADVOCATE, FOR THE APPELLANTS SMT. RANU BISWAS, ADDL. CIT, SR. D.R., FOR THE RESP ONDEN T DATE OF CONCLUDING THE HEARING : JANUARY 27, 2020 DATE OF PRONOUNCING THE ORDER : JANUARY 31, 2020 O R D E R THESE TWO ASSESSEES APPEALS FOR SAME ASSESSMENT Y EAR 2015-16 ARISE AGAINST THE LEARNED COMMISSIONER OF INCOME TA X (APPEALS)-11, KOLKATAS SEPARATE ORDERS; BOTH DATED 31.07.2019, P ASSED IN CASE NOS. ITA NO. 2402/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI ALOKE KUMAR GHOSH & ITA NO. 2403/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI PARTHA SARATHI MONDAL 2 CIT(A),KOLKATA-11/10193/2017-18 AND NO. CIT(A),KOLK ATA- 11/10199/2017-18, UPHOLDING THE ASSESSING OFFICERS IDENTICAL ACTION MAKING SECTION 2(22)(E) DEEMED DIVIDEND ADDITION(S) OF RS.18,18,883/- AND RS.18,18,283/-; RESPECTIVELY INVOLVING PROCEEDI NGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. HEARD SHRI S. JHAJHARIA, ADVOCATE REPRESENTING ASS ESSEES AS WELL AS SMT. RANU BISWAS, ADDL. CIT/ SR. D.R. APPEARING AT THE REVENUES BEHEST. CASE FILES PERUSED. 2. IT TRANSPIRES FROM THE CASE RECORDS DURING THE C OURSE OF HEARING THAT THE RELEVANT FACTUAL MATRIX IN BOTH THESE APPE ALS IS IDENTICAL. THESE TWO ASSESSEES NAMELY SHRI ALOKE KUMAR GHOSH AND SHR I PARTHA SARATHI MONDAL ARE DIRECTORS IN A COMPANY NAMELY M/S. SPAND AN ADVANCE MEDICARE PVT. LIMITED HOLDING ITS 16% SHARE EACH. T HE ASSESSING OFFICER FRAMED THE ASSESSMENTS IN BOTH THESE ASSESSEES CASE S MAKING THE IMPUGNED SECTION 2(22)(E) DEEMED DIVIDEND ADDITION( S) AFTER NOTICING THE FACT THAT THE ABOVE STATED COMPANY HAD PURCHASE D LAND(S) IN THEIR NAMES AND GOT THEM REGISTERED AS THEIR PERSONAL HOL DINGS. THIS MADE THE ASSESSING OFFICER TO TREAT THE SUMS INVOLVED IN LAN D TRANSACTION AS DEEMED DIVIDEND INCOME AS UPHELD IN THE IDENTICAL L OWER AUTHORITIES DISCUSSION. 3. BOTH PARTIES REITERATED THEIR RESPECTIVE STANDS DURING THE COURSE OF HEARING. SMT. BISWAS STRONGLY SUPPORTED THE CIT(A) S ACTION UPHOLDING THE IDENTICAL DEEMED DIVIDEND ADDITION(S) IN THE FA CTS AND CIRCUMSTANCES OF THESE TWO CASES. I FIND NO MERIT IN REVENUES ST AND INVOKING SECTION 2(22)(E) DEEMED DEDUCTION OF DIVIDEND UNDER CHALLEN GE. THE FACT REMAINS THAT ALTHOUGH THE COMPANY HEREINABOVE HAS PAID FOR PURCHASING LAND(S) IN THESE TWO ASSESSEES/DIRECTORS NAMES HAVING 16% SHA RES, THE SAID LANDS ITA NO. 2402/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI ALOKE KUMAR GHOSH & ITA NO. 2403/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI PARTHA SARATHI MONDAL 3 FORM PART OF COMPANYS BALANCE-SHEET ONLY AS ITS AS SETS THAN THAT OF THESE TWO ASSESSEES. THE SAID COMPANYS RESOLUTION(S) TO THIS EFFECT ALSO INDICATES THAT THESE DIRECTORS WOULD NOT ENJOY ANY RIGHT IN THE LAND. SMT. BISWAS AT THIS STAGE SOUGHT TO JUSTIFY THE LOWER AU THORITIES ACTION THAT IF THESE TWO ASSESSEES/DIRECTORS SELL THE LAND IN FUTU RE, THAT SUM WOULD INDEED BE IN THE NATURE OF DEEMED DIVIDENDS ONLY. I FIND NO SUBSTANCE IN THE INSTANT LAST ARGUMENT AS WELL AS THE LAND IN QU ESTION PURCHASED IN THESE TWO DIRECTORS NAMES CANNOT BE TAKEN AS A PAY MENT PER SE AS WELL. I, THEREFORE, DIRECT THE ASSESSING OFFICER TO DELET E THE IMPUGNED ADDITION(S) MADE IN THESE TWO ASSESSEES CASES. NO OTHER ARGUMENT HAS BEEN RAISED DURING THE COURSE OF HEARING. 4. IN THE RESULT, THESE ASSESSEES APPEALS ARE ALLOW ED. A COPY OF THE INSTANT COMMON ORDER BE PLACED IN TH E RESPECTIVE CASE FILE. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 31, 2 020. SD/- (SATBEER SINGH GODARA) JUDICIAL MEMBER KOLKATA, THE 31 ST DAY OF JANUARY, 2020 COPIES TO : (1) SHRI ALOKE KUMAR GHOSH, C/O. M/S. SALARPURIA JAJODIA & CO., 3 RD FLOOR, 7, CHITTARANJAN AVENUE, KOLKATA-700072 (2) SHRI PARTHA SARATHI MONDAL, C/O. M/S. SALARPURIA JAJODIA & CO., 3 RD FLOOR, 7, CHITTARANJAN AVENUE, KOLKATA-700072 (3) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-38, MIDNAPORE, M-15, BIDHAN NAGAR, PASCHIM MIDNAPORE-721101 (4) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-38, MIDNAPORE, ITA NO. 2402/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI ALOKE KUMAR GHOSH & ITA NO. 2403/KOL/2019 ASSESSMENT YEAR: 2015-2016 SHRI PARTHA SARATHI MONDAL 4 BAIJAYANTI APARTMENT, RABINDRA NAGAR, PASCHIM MIDNAPORE-721101 (5) COMMISSIONER OF INCOME TAX (APPEALS) -11, KOL KATA; (6) COMMISSIONER OF INCOME TAX- , KOLKATA (7) THE DEPARTMENTAL REPRESENTATIVE (8) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.