Archit Jain , Bangalore V. The Income Tax Officer ward-5(3)(2), Bangalore

ITA 2877/BANG/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2744 (ITAT-BANGALORE)
• Duration Of Justice: 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 17-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BANGALORE BENCH A BEFORE S HRI JASON P BOAZ , ACCOUNTANT MEMBER I.T . A. NO. 2877 /BANG/20 18 (ASSESSMENT YEAR : 20 14 - 15 ) SHRI ARCHIT JAIN . NO.459, ARIHANT KRUPA, 3 RD CROSS, 8 TH MAIN, VIJAYANAGAR, BANGALOR E - 560 040 . . APPELLANT. VS. INCOME TAX OFFICER, WARD 5(3)(2), BANGALORE. .. RESPONDENT. APPELLANT BY : SMT. SUMAN LUNKAR, C.A. R E SPONDENT BY : SH RI SATYA SAI RATH, JCIT (D.R) DATE OF H EARING : 30.10.2018. DATE OF P RONOUNCEMENT : 02 .11 .201 8 . O R D E R PER SHRI JASON P BOAZ, A .M . : T H I S A PP E AL BY T H E A SS E S S E E I S D I R E C T E D AGA I N S T T H E O R D E R OF T H E CI T ( A ) - 10 , B E N G A L U R U , D A T E D 14.09. 2 0 1 8 F O R A SS E S S M E N T Y E A R 2 0 14 - 15 . 2 . B R I E F L Y S TAT E D, T H E F A C TS OF T H E C A S E A R E A S U N D E R : - 2 . 1 T H E A SS E S S E E F ILE D HIS R E T U R N OF I N C OME F OR A S S E S S M E N T Y E AR 2 0 14 - 1 5 O N 27.03.2015 D E C L A R I N G I N C O ME O F R S . 4,05,000 / - F R OM 2 IT A NO. 2877 /BANG/201 8 O T H E R S O U R C E S A N D C A P I TAL G A I N S O F R S . 26,13,744 / - ON S A L E OF S H A R E S O F UNN O I ND US TRIE S C L A I M E D A S E X E M P T U / S 1 0 ( 3 8 ) O F T H E I NC O M E - TAX AC T , 1 96 1 ( I N S H O R T T H E AC T ) . T H E C A S E W A S TA K E N U P F O R SCR U T I N Y A N D T H E A SS E S S M E N T W A S C O N C L U D E D U / S 14 3 ( 3 ) OF T H E AC T V I DE O R D E R D A T E D 30 / 1 2 / 201 6 , W H E R EI N T H E A S S E SS EE S I N C OME WAS D E T E R M I N E D AT R S . 31,27,000 / - I N V IE W OF T H E ADD I T I O N OF S A L E P R O C E E DS OF R S . 27,22,0 00 / - R E C EI V E D O N A C C O UN T OF 74,000 S H A R E S OF M / S . UNNO INDUSTRIES BEING H EL D T O B E AS C A S H C R E D I TS U / S 6 8 O F T H E AC T. O N A PP E A L , T H E CI T ( A ) - 10 , B E N GA L U R U , D I S M I S S E D T H E A S S E S S E E S AP P E A L V I D E T H E I M P U G N E D O R D E R D A T E D 14/09 / 20 1 8 . 3.1 AGGRIEVED BY TH E ORDER OF THE CIT (APPEALS) 10, BENGALURU, DT.14.9.2018 FOR ASSESSMENT YEAR 2014 - 15, THE ASSESSEE HAS PREFERRED THIS APPEAL WHEREIN HE HAS RAISED THE FOLLOWING GROUNDS : - 3 IT A NO. 2877 /BANG/201 8 4 IT A NO. 2877 /BANG/201 8 3 . 2 D U R I N G T H E C O U R S E OF H E A R I N G, T H E L D . A R F OR T H E A S S E S S E E S U BM I TT E D T H AT O N S I M IL AR F A C TS A N D C I R C U M S T A N C E S , T H E M ATT E R F OR C O N S I D E R A T I ON I S S Q U A R E L Y C O V E R E D BY T H E D E C I S I O N OF T H E I T A T , KOL K A T A B E N C H I N I T S O R D E R I N I T A N O . 2 3 94 / KO L / 2 01 7 I N T H E C A S E OF P R A K A S H C H A N D B U T O R I A . IT I S S U BM I TT E D T H A T I N T H E C I T E D C A S E ( S U P R A) A L S O , T H E A S S E SS EE , A N I N D I V I D U A L , F ILE D H I S R E T UR N OF I N C O M E C L A I M I N G I N C O ME ON S A L E OF S H A R E S AS E X E M PT U / S 10 ( 38 ) OF T H E A C T. T H E A S S E S S I N G O FF I C E R ( A O ) T R E A T E D T H E R E C E I P T O F S A L E C O N S I D E R A T I ON AS U N A CC O U N T E D I N C O ME A N D MA D E A N A D D I T I O N U / S 6 8 OF T H E A C T . ON A P P E A L T H E CI T ( A ) U P H E L D T H E A O S O R D E R . H OW E V E R , ON FU R T H E R A P P E A L , T H E I T A T , KO L K ATA B E N C H A LL OW E D T H E A SS E SS E E S A P P E AL O B S E R V I N G T H A T T H E ADD I T I O N W A S UN S U S TA I N A B L E S I N C E T H E A O MADE T H E AD D I T I ON I N A R O U T I N E A N D M E C H A N I Z E D MA NN E R : M E R E L Y ON S U S P I C I O N S BA S E D O N R E PO R T OF E N Q U I R I E S M A D E BY T H E I N V E S T I G A T I ON DI R E C TO R ATE O F D I T , K O L K AT A , W I T H O U T B R I N G I N G T H E S AME ON R E C O R D O R C O N F R O N T I N G T H E A SS E S S E E W I TH O R S U PP L Y I N G T H E A S S E SS E E C OP I E S OF T H E D O C U M E N TS R E L I E D U P ON F OR M A K I N G T H E A DD I T I ON A N D P R O V I D I N G H I M O P P O R T U N I T I E S F OR H I S R E B U TT A L . IT I S P R A Y E D T H A T I N V IE W OF T H E A B O V E , T H E O R D E R S O F T H E A U T H O R I T I E S B E L OW BE S E T A S I D E A N D T H E A SS E S S E E S APP E A L B E A LL OW E D. 3 . 3 P E R C O N T R A , T H E L D. D R F O R R E V E N U E S U B M I T T E D T H AT ON S I M I L AR F A C TS A N D C I RC U M S TA N C E S A S I N T H E C A S E ON H A N D , I S S U E F O R C O N S I D E R AT I ON I S C O V E R E D B Y T H E D E C I S I O N S OF T H E B E N GA L U R U I T A T I N 5 IT A NO. 2877 /BANG/201 8 T H E C A S E S OF AR V I N D K U M AR M OO L C H A N D I N I T A NO . 5 09 / B A N G / 201 7 A N D P U K H R AJ H A S M U K H L A L I N I T A NO . 1 927 / B A N G / 2 0 1 7 W H E R E I N T H E T R I B U N A L H A S R E S TO R E D T H E I SS U E TO T H E F IL E OF T H E A O H A V I N G O B S E R V E D T H AT T H E A D D I T I O N S WE R E MA D E BA S E D ON R E P O R TS OF T H E KOL K ATA I N V E S T I G A T I ON DI R E C TO R ATE OF T H E DEP A R T M E N T A N D S TAT E M E N TS OF V A R I O U S P E R S O N S W I T H O U T C O N F R O N T I N G OR M A K I N G T H E M A V A IL A B L E TO T H E A S S E SS E E F O R R E B U TTA L . IN T H O S E C A S E S , T H E T R I B U N A L R E S TO R E D T H E M A T T E R TO T H E F I L E OF T H E A O W I TH T H E D I R E C T I ON TO C O N F R O N T T H E A S S E S S E E W I T H T H E R E P O R T S / D O C U M E N T S / S T A T E M E N TS P R OPO S E D TO BE U S E D A G A I N S T T H E A SS E S S E E , A L L OW R E B U TTAL T H E R E O F A N D CR O S S E X AM I N A T I ON OF P A R T I E S ON W H O S E T E S T I M O N Y I S P R O PO S E D TO BE R E L I E D U P ON A N D T H E MATT E R BE A D J U D I C AT E D A F R E S H AF T E R AF F O R D I N G T H E A S S E S S E E A D E Q U ATE O P PO R T U N I TY O F B E I N G H E A R D A N D TO A L S O F I L E D E T A I L S / S U B M I S S I O N S I N T H I S R E G A R D. 3 . 4 IN R E J OI N D E R , T H E L D . A R F OR T H E A S S E S S E E D I D N OT D I S P U TE T H E P R O PO S I T I ON P U T F O R TH B Y T H E L D . DR F OR R E S T O R I N G T H I S I S S U E TO T H E F IL E OF T H E A O F OR D E N O V O AD J U D I C A T I O N . 3 . 5 I H A V E H E A R D B O T H P A R T I E S A N D P E R U S E D A N D C A R E F U L L Y C O N S I D E R E D T H E M A T E R I A L ON R E C O R D I N C L U D I N G T H E J U D I C I A L D E C I S I O N S C I T E D A N D T H E O R D E R S OF T H E A U T H O R I T I E S B EL OW. T A K I N G I N TO C O N S I D E R A T I ON T H E F A C TS A N D C I R C U M S T A N C E S O F T H E C A S E A N D T H E J U D I C I AL D E C I S I O N S C I T E D, I F I N D T H A T T H E I MP U G N E D I S S U E I S S Q U A R E L Y 6 IT A NO. 2877 /BANG/201 8 C O V E R E D BY T H E O R D E R S OF T H E B E N GA L U R U I T A T I N T H E C A S E S OF A RV I N D K U M A R M O OL C H A N D ( S U P R A ) A N D P U K H R AJ H A S M U K H L AL ( S U P R A ) . F OL L OW I N G T H E AF O R E S A I D O R D E R S ( S U P R A ) , I S E T A S I DE T H E O R D E R S O F T H E A O A N D R E S T O R E T H E M AT T E R OF T R E AT M E N T OF S A L E P R O C EE D S D E C L A R E D O N S A L E OF S H A R E S A S U N E X P L A I N E D C R E D I TS U / S 6 8 O F T H E AC T TO T H E F IL E OF T H E A O TO R E - AD J U D I C ATE T H E I SS U E AF R E S H ; A F T E R M A K I N G A V A I L AB L E TO T H E A SS E S S E E F OR H I S R E B U TTAL A L L DO C U M E N TS R E LIE D U P O N BY R E V E N U E F OR MA K I N G T H E A D D I T I O NS / D I S A L L OWA N C E S A N D P R O VI D I N G A D E Q U A T E OP P O R T U N I TY TO T H E A S S E S S E E F OR C R O SS - E X A M I N AT I ON O F P E RS O N S W H O S E S T A T E M E N TS A R E B E I N G R E L I E D U P O N . IT I S A C C O R D I N G L Y O R D E R E D . 4 . IN T H E R E S U L T, T H E A S S E S S EE S A P P E A L F OR A S S E S S M E N T Y E AR 20 1 4 - 1 5 I S A L L OW E D F OR S T A T I S T I C AL P U R P O S E S . ORDER PRONOUNCED IN THE OPEN COURT ON THE 2ND DAY OF NOV., 201 8 . SD/ - ( JASON P BOAZ ) ACCOUNTANT MEMBER BANGALO RE, DT. 02 .11.2018. *REDDY GP 7 IT A NO. 2877 /BANG/201 8 COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE CERTIFIED TRUE COPY ASST. REGISTR AR INCOME TAX APPELLATE TRIBUNAL BANGALORE.