Mamtha, CHENNAI V. ITO Non Corporate Ward 5(3), CHENNAI

ITA 2674/CHNY/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 2978 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 07-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: U DEEPAK KUMAR
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.2673/CHNY/2017 ( )( / ASSESSMENT YEAR : 2014-15 M/S PUKHRAJ JITENDRA BAROLA HUF, NO.228/124, SHOP NO.20, 1 ST FLOOR, AADINATH COMPLEX, NSC BOSE ROAD, SOWCARPET, CHENNAI - 600 079. PAN : AADHP 4112 R V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(4), CHENNAI - 600 006. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.2674/CHNY/2017 ( )( / ASSESSMENT YEAR : 2014-15 SMT. MAMTHA, NO.228/124, SHOP NO.20, 1 ST FLOOR, AADINATH COMPLEX, NSC BOSE ROAD, SOWCARPET, CHENNAI - 600 079. PAN : AJKPM 7183 P V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(3), CHENNAI. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.2675/CHNY/2017 ( )( / ASSESSMENT YEAR : 2014-15 SHRI MUKESH KUMAR BAROLA HUF, NO.228/124, SHOP NO.20, 1 ST FLOOR, AADINATH COMPLEX, NSC BOSE ROAD, SOWCARPET, CHENNAI - 600 079. PAN : AAFHM 0429 Q V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 5(3), CHENNAI. (+,/ APPELLANT) (-.+,/ RESPONDENT) 2 I.T.A. NOS.2673 TO 2675/CHNY/17 I.T.A. NO.2990/CHNY/17 ./ ITA NO.2990/CHNY/2017 ( )( / ASSESSMENT YEAR : 2014-15 M/S JITENDRA BAROLA HUF, NO.228/124, SHOP NO.20, 1 ST FLOOR, AADINATH COMPLEX, NSC BOSE ROAD, SOWCARPET, CHENNAI - 600 079. PAN : AADHJ 3264 Q V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 4(2), CHENNAI. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANTS BY : SHRI U. DEEPAK KUMAR, CA -.+, / 0 / RESPONDENT BY : SHRI SRIDHAR DORA, JCIT 1 / 2% / DATE OF HEARING : 29.01.2019 3') / 2% / DATE OF PRONOUNCEMENT : 04.03.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : ALL THESE APPEALS FILED BY INDEPENDENT ASSESSEES ARE DIRECTED AGAINST THE RESPECTIVE ORDERS OF THE COMMI SSIONER OF INCOME TAX (APPEALS) -5, CHENNAI AND PERTAIN TO ASS ESSMENT YEAR 2014-15. SINCE COMMON ISSUE ARISES FOR CONSIDERATI ON IN ALL THESE APPEALS, WE HEARD THESE APPEALS TOGETHER AND DISPOS ING 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 3 I.T.A. NOS.2673 TO 2675/CHNY/17 I.T.A. NO.2990/CHNY/17 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 U. DEEPAK KUMAR, THE LD. REPRESENT ATIVE FOR THE ASSESSEES AND SHRI SRIDHAR DORA, THE LD. DEPART MENTAL REPRESENTATIVE. ADMITTEDLY, THE INVESTIGATION REPO RT SAID TO BE RECEIVED BY THE ASSESSING OFFICER FROM KOLKATA WAS NOT FURNISHED TO THE ASSESSEES. THE REVENUE CLAIMS THAT THE ASSESSE ES HAVE INVESTED IN A PENNY STOCK COMPANY. IT IS NOT KNOWN HOW THE REVENUE CLAIMS THAT THE ASSESSEES INVESTED IN A PEN NY STOCK COMPANY? HOW THE PENNY STOCK COMPANY IS ALLOWED TO ISSUE PUBLIC SHARES SO AS TO INVITE THE GENERAL PUBLIC FOR INVES TMENT? IT IS ALSO NOT KNOWN HOW THIS KIND OF COMPANIES ARE ALLOWED TO BE LISTED IN STOCK EXCHANGE? THEREFORE, AN INVESTIGATION HAS TO BE MADE BY THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL FUR NISH A COPY OF INVESTIGATION REPORT SAID TO BE RECEIVED FROM THE I NVESTIGATION WING OF THE DEPARTMENT AT KOLKATA TO THE ASSESSEES. ACC ORDINGLY, THE ORDERS OF BOTH AUTHORITIES BELOW ARE SET ASIDE AND THE ASSESSING OFFICER IS DIRECTED TO FURNISH A COPY OF THE INVEST IGATION REPORT 4 I.T.A. NOS.2673 TO 2675/CHNY/17 I.T.A. NO.2990/CHNY/17 RECEIVED FROM THE DEPARTMENT AT KOLKATA AND ALSO TO MAKE A THOROUGH INVESTIGATION HOW THE PENNY STOCK COMPANY IS ALLOWED TO ISSUE PUBLIC SHARES AND BRING ON RECORD THE ACTION TAKEN AGAINST THE OFFICERS WHO ARE RESPONSIBLE FOR ALLOWING SUCH A PE NNY STOCK COMPANY TO ISSUE PUBLIC SHARES. THE ASSESSING OFFI CER SHALL ALSO EXAMINE WHETHER THIS COMPANY IS LISTED IN STOCK EXC HANGE. IF SO, WHAT ARE THE ACTIONS TAKEN FOR DELISTING SUCH A COM PANY FROM STOCK EXCHANGE. THE ASSESSING OFFICER SHALL EXAMINE ALL THESE ASPECTS AND BRING ON RECORD ALL MATERIAL FACTS AND THEREAFT ER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASO NABLE 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 4 TH MARCH, 2019 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESA N) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 4 TH MARCH, 2019. 5 I.T.A. NOS.2673 TO 2675/CHNY/17 I.T.A. NO.2990/CHNY/17 KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-5, CHENNAI 4. PRINCIPAL CIT-9, CHENNAI 5. 7: -2 /DR 6. ;( < /GF.