Rajesh Kumar Bantia, CHENNAI V. ITO NCW 6(1), CHENNAI

ITA 2467/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4013 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 27-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S RENGA RAJAN
• Assessee Lawyers: R PADMANABHAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NOS.2467, 2468 & 2469/CHNY/2018 ( )( / ASSESSMENT YEARS : 2010-11, 2013-14 & 2010-11 ITA NOS.2467 & 2468/CHNY/2018 SHRI RAJESH KUMAR BANTIA PAN : AFHPR 9977 D & ITA NO.2469/CHNY/2018 SHRI RAJESH KUMAR BANTIA (HUF) NO.13, CHANDRAPPA MUDALI ST., SOWCARPET, CHENNAI - 600 079. PAN : AAGHR 1809 C V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.2470/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 SHRI TARUN KUNDANMAL (HUF), 44/39, E.K. AGRAHARAM STREET, PARK TOWN, CHENNAI - 600 003. PAN : AACHT 1849 Q V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(4), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.2471/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 SHRI RAKESH KUMAR KUNDANMAL, 44/39, E.K. AGRAHARAM STREET, PARK TOWN, CHENNAI - 600 003. PAN : AAKHR 7143 B V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(1), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) 2 I.T.A. NO.2467 TO 2478/CHNY/18 ./ ITA NO.2472/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 SHRI VINOD KUMAR KUNDANMAL (HUF), 44/39, E.K. AGRAHARAM STREET, PARK TOWN, CHENNAI - 600 003. PAN : AADHV 1841 H V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(4), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.2473/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 SMT. SUSHEELA JAIN, NO.13, CHANDRAPPA MUDALI ST., SOWCARPET, CHENNAI - 600 079. PAN : AIOPS 9121 N V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(3), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.2474/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 SHRI TARUN KUNDANMALJI JAIN, 44/39, E.K. AGRAHARAM STREET, PARK TOWN, CHENNAI - 600 003. PAN : AAFPJ 8314 B V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(4), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NOS.2475, 2476 & 2477/CHNY/2018 ( )( / ASSESSMENT YEARS : 2010-11, 2011-12 & 2013-14 SHRI LALCHAND BANTIA, NO.13, CHANDRAPPA MUDALI ST., SOWCARPET, CHENNAI - 600 079. PAN : AABPL 6430 C V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(2), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) 3 I.T.A. NO.2467 TO 2478/CHNY/18 ./ ITA NO.2478/CHNY/2018 ( )( / ASSESSMENT YEAR : 2010-11 M/S VINOD KUMAR BANTIA & SONS (HUF), NO.13, CHANDRAPPA MUDALI ST., SOWCARPET, CHENNAI - 600 079. PAN : AADHV 0192 H V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(4), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANTS BY : SHRI R. PADMANABHAN, CA -.+, / 0 / RESPONDENT BY : SHRI S. RENGARAJAN, JCIT 1 / 2$ / DATE OF HEARING : 09.01.2019 34) / 2$ / DATE OF PRONOUNCEMENT : 06.02.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THE APPEALS FILED BY INDEPENDENT ASSESSEES ARE DI RECTED AGAINST THE RESPECTIVE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-5, CHENNAI. SINCE COMMON ISSUE ARISES FOR CONSIDERATI ON IN ALL THESE APPEALS, WE HEARD THESE APPEALS TOGETHER AND DISPOS ING OF THE SAME BY THIS COMMON ORDER. 2. THE ASSESSEES CLAIM FOR EXEMPTION UNDER SECTION 10(38) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'), WHICH WA S NOT ALLOWED BY THE ASSESSING OFFICER AFTER REFERRING TO THE INVESTIGAT ION REPORT SAID TO BE RECEIVED FROM INVESTIGATION WING OF THE DEPARTMENT AT KOLKATA. 4 I.T.A. NO.2467 TO 2478/CHNY/18 3. WE HEARD SHRI R. PADMANABHAN, THE LD. REPRESENTA TIVE FOR THE ASSESSEES AND SHRI S. RENGARAJAN, THE LD. DEPARTMEN TAL REPRESENTATIVE. ADMITTEDLY, THE INVESTIGATION REPO RT SAID TO BE RECEIVED BY THE ASSESSING OFFICER FROM KOLKATA WAS NOT FURNI SHED TO THE ASSESSEES. MOREOVER, THE STATEMENT SAID TO BE RECO RDED FROM SHRI ASHOK KUMAR KAYAN AT KOLKATA WAS ALSO NOT FURNISHED TO THE ASSESSEES. THE REVENUE CLAIMS THAT THE ASSESSEES HAVE INVESTED IN PENNY STOCK COMPANIES. IT IS NOT KNOWN HOW THE REVENUE CLAIMS THAT THE ASSESSEES INVESTED IN PENNY STOCK COMPANIES? HOW THE PENNY S TOCK COMPANIES ARE ALLOWED TO ISSUE PUBLIC SHARES SO AS TO INVITE THE GENERAL PUBLIC FOR INVESTMENT? IT IS ALSO NOT KNOWN HOW THIS KIND OF COMPANIES ARE ALLOWED TO BE LISTED IN STOCK EXCHANGE? THEREFORE, AN INVE STIGATION HAS TO BE MADE BY THE ASSESSING OFFICER. THE ASSESSING OFFIC ER SHALL FURNISH A COPY OF INVESTIGATION REPORT SAID TO BE RECEIVED FR OM THE INVESTIGATION WING OF THE DEPARTMENT AT KOLKATA AND A COPY OF STA TEMENT RECORDED FROM SHRI ASHOK KUMAR KAYAN AT KOLKATA TO THE ASSES SEES. ACCORDINGLY, THE ORDERS OF BOTH AUTHORITIES BELOW ARE SET ASIDE AND THE ASSESSING OFFICER IS DIRECTED TO FURNISH COPIES OF THE INVEST IGATION REPORT RECEIVED FROM THE DEPARTMENT AT KOLKATA AND THE STATEMENTS R ECORDED AT KOLKATA AND AT CHENNAI AND ALSO TO MAKE A THOROUGH INVESTIG ATION HOW THE PENNY STOCK COMPANIES ARE ALLOWED TO ISSUE PUBLIC SHARES AND BRING ON RECORD THE ACTION TAKEN AGAINST THE OFFICERS WHO ARE RESPO NSIBLE FOR ALLOWING SUCH PENNY STOCK COMPANIES TO ISSUE PUBLIC SHARES. THE ASSESSING 5 I.T.A. NO.2467 TO 2478/CHNY/18 OFFICER SHALL ALSO EXAMINE WHETHER THESE COMPANIES ARE LISTED IN STOCK EXCHANGE. IF SO, WHAT ARE THE ACTIONS TAKEN FOR DE LISTING SUCH COMPANIES FROM STOCK EXCHANGE. THE ASSESSING OFFICER SHALL E XAMINE ALL THESE ASPECTS AND BRING ON RECORD ALL MATERIAL FACTS AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEES. 4. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSE SSEES 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. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A)-5, CHENNAI-34 4. PRINCIPAL CIT-9, CHENNAI 5. 8; -2 /DR 6. <( = /GF.