Santhosh Bai, CHENNAI V. ITONCW 6(2), CHENNAI

ITA 2514/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7238 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 29-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R PADMANABHAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . !, # !$ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NOS.2514 & 2515/CHNY/2018 & '& / ASSESSMENT YEARS : 2010-11 & 2013-14 SMT. SANTOSH BAI, 44/39, E.K. AGRAHARAM STREET, PARK TOWN, CHENNAI - 600 003. PAN : AASPS 4354 H V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(2), CHENNAI. ()*/ APPELLANT) (+,)*/ RESPONDENT) ./ ITA NO.2516/CHNY/2018 & '& / ASSESSMENT YEAR : 2010-11 M/S MOOTHA KANJAYALAL PRAMOD KUMAR HUF, 39, KALATHI PILLAI STREET, SOWCARPET, CHENNAI - 600 079. PAN : AAEHM 5491 F V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(3), CHENNAI. ()*/ APPELLANT) (+,)*/ RESPONDENT) ./ ITA NO.2517/CHNY/2018 & '& / ASSESSMENT YEAR : 2010-11 M/S RATHAN CHAND BOTHRA (HUF), 13, VIKUNTA VADIYAR STREET, SOWCARPET, CHENNAI - 600 079. PAN : AADHR 3728 M V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 6(1), CHENNAI. ()*/ APPELLANT) (+,)*/ RESPONDENT) 2 I.T.A. NOS.2514 TO 2520/CHNY/18 ./ ITA NO.2518/CHNY/2018 & '& / ASSESSMENT YEAR : 2010-11 SHRI K. PRAMOD KUMAR JAIN, 39, MISHRI KRUPA KALATHI PILLAI STREET, SOWCARPET, CHENNAI - 600 079. PAN : AAIPP 2443 C V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(5), CHENNAI. ()*/ APPELLANT) (+,)*/ RESPONDENT) ./ ITA NO.2519/CHNY/2018 & '& / ASSESSMENT YEAR : 2012-13 SHRI MITTAL MANISH KUMAR, NO.52, NSC BOSE ROAD, SOWCARPET, CHENNAI - 600 079. PAN : AKMPM 1528 R V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(3), CHENNAI. ()*/ APPELLANT) (+,)*/ RESPONDENT) ./ ITA NO.2520/CHNY/2018 & '& / ASSESSMENT YEAR : 2012-13 SHRI MANISH KUMAR, NO.52, NSC BOSE ROAD, SOWCARPET, CHENNAI - 600 079. PAN : AFNPM 3822 N V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(3), CHENNAI. ()*/ APPELLANT) (+,)*/ RESPONDENT) )* - . / APPELLANTS BY : SHRI R. PADMANABHAN, CA +,)* - . / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT / - 0# / DATE OF HEARING : 03.01.2019 12' - 0# / DATE OF PRONOUNCEMENT : 11.01.2019 3 I.T.A. NOS.2514 TO 2520/CHNY/18 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THE APPEALS FILED BY THE INDEPENDENT ASSESSEES ARE DIRECTED AGAINST THE RESPECTIVE ORDERS OF THE COMMISSIONER O F INCOME TAX (APPEALS) -5, CHENNAI. SINCE COMMON ISSUE ARISES F OR CONSIDERATION IN ALL THESE APPEALS, WE HEARD THESE APPEALS TOGETHER AND DISPOSING 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'), WHIC H WAS NOT ALLOWED BY THE ASSESSING OFFICER AFTER REFERRING TO THE INV ESTIGATION REPORT SAID TO BE RECEIVED FROM INVESTIGATION WING OF THE DEPARTMENT AT KOLKATA. 3. WE HEARD SHRI R. PADMANABHAN, THE LD. REPRESENTA TIVE FOR THE ASSESSEES AND SHRI AR.V. SREENIVASAN, THE LD. D EPARTMENTAL REPRESENTATIVE. ADMITTEDLY, THE INVESTIGATION REPO RT SAID TO BE RECEIVED BY THE ASSESSING OFFICER FROM KOLKATA WAS NOT FURNISHED TO THE ASSESSEES. MOREOVER, THE STATEMENT SAID TO BE RECORDED FROM SHRI ASHOK KUMAR KAYAN AT KOLKATA WAS ALSO NOT FURN ISHED TO THE ASSESSEES. THE REVENUE CLAIMS THAT THE ASSESSEES H AVE INVESTED 4 I.T.A. NOS.2514 TO 2520/CHNY/18 IN PENNY STOCK COMPANIES. IT IS NOT KNOWN HOW THE REVENUE CLAIMS THAT THE ASSESSEES INVESTED IN PENNY STOCK COMPANIE S? HOW THE PENNY STOCK COMPANIES ARE ALLOWED TO ISSUE PUBLIC S HARES SO AS TO INVITE THE GENERAL PUBLIC FOR INVESTMENT? IT IS AL SO NOT KNOWN HOW THIS KIND OF COMPANIES ARE ALLOWED TO BE LISTED IN STOCK EXCHANGE? THEREFORE, AN INVESTIGATION HAS TO BE MADE BY THE A SSESSING OFFICER. THE ASSESSING OFFICER SHALL FURNISH A COP Y OF INVESTIGATION REPORT SAID TO BE RECEIVED FROM THE INVESTIGATION W ING OF THE DEPARTMENT AT KOLKATA AND A COPY OF STATEMENT RECOR DED FROM SHRI ASHOK KUMAR KAYAN AT KOLKATA TO THE ASSESSEES. ACC ORDINGLY, 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 STA TEMENTS RECORDED AT KOLKATA AND AT CHENNAI AND ALSO TO MAKE A THOROUGH INVESTIGATION HOW THE PENNY STOCK COMPANIES ARE ALL OWED TO ISSUE PUBLIC SHARES AND BRING ON RECORD THE ACTION TAKEN AGAINST THE OFFICERS WHO ARE RESPONSIBLE FOR ALLOWING SUCH PENN Y STOCK COMPANIES TO ISSUE PUBLIC SHARES. THE ASSESSING OF FICER SHALL ALSO EXAMINE WHETHER THESE COMPANIES ARE LISTED IN STOCK EXCHANGE. IF SO, WHAT ARE THE ACTIONS TAKEN FOR DELISTING SUCH C OMPANIES FROM 5 I.T.A. NOS.2514 TO 2520/CHNY/18 STOCK EXCHANGE. THE ASSESSING OFFICER SHALL EXAMIN E ALL THESE ASPECTS AND BRING ON RECORD ALL MATERIAL FACTS AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVI NG 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 11 TH JANUARY, 2019 AT CHENNAI. SD/- SD/- (. !) ( . . . ) (S. JAYARAMAN) (N.R.S. GANES AN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 11 TH JANUARY, 2019. KRI. - +056 76'0 /COPY TO: 1. )*/ APPELLANT 2. +,)*/ RESPONDENT 3. / 80 () /CIT(A)-5, CHENNAI-34 4. PRINCIPAL CIT- 9, CHENNAI 5. 69 +0 /DR 6. :& ; /GF.