SHRIKANT RAMESH MERCHANT, Mumbai V. ACIT in situ ITO -19 (3) (3) , MUMBAI

ITA 296/MUM/2022

AI Insights

The case involves Shrikant Ramesh Merchant, the appellant, who contested the additions made to his income by the Assessing Officer under sections 68 and 69C of the Income Tax Act, 1961, for the Assessment Year 2013-14. The additions were made following the sale of shares of Shrinath Commercial and Finance Ltd., which was deemed a penny stock with rigged prices. The Assessing Officer considered the transaction as bogus and added the sale proceeds and commission paid as unexplained income. The appellant's appeal to the CIT(A) was unsuccessful, leading to the current appeal before the Tribunal. The Tribunal, after considering the submissions and evidence, dismissed the appeal, agreeing with the lower authorities' findings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132735 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-04-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 15-02-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 69C; 143(3)

Judgement Text

आमकय अऩीरीम अधधकयण भ ुंफई ऩीठ “फी ”, भ ुंफई ऩीठ श्री विकास अिस्थी, न्मायमक सदस्म एिुं श्री गगन गोमर, रेखाकाय सदस्म के सभक्ष IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B ”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI GAGAN GOYAL, ACCOUNTANT MEMBER आअसुं.296/भ ुं/ 2022 (यन.ि.2013-14) ITA NO. 296/MUM/2022(A.Y. 2013-14) Shrikant Ramesh Merchant, 110/111, Crescent Mansion, Gamdevi Lane, Gamdevi, Mumbai 400007. PAN: AFNPM-4228-A ...... अऩीराथी /Appellant फनाभ Vs. ACIT 16(1), Room No.219, Income Tax Office, Matru Mandir Bldg., Tardeo, Mumbai 400 007. ..... प्रयििादी/Respondent अऩीराथी द्िाया/ Appellant by : None प्रयििादी द्िाया/Respondent by : Shri Chetan M.Kacha स निाई की यिधथ/ Date of hearing : 27/04/2023 घोषणा की यिधथ/ Date of pronouncement : 28/04/2023 आदेश/ ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), *in short ‘the CIT(A)’+, National Faceless Appeal Centre, Delhi dated 24/12/2021, for the Assessment Year 2013-14. 2 ITA NO. 296/MUM/2022(A.Y. 2013-14) 2. The notice of hearing of appeal was duly served on the assessee. Shri Chintan Patel appeared on behalf of the assessee on 12/05/2022. Thereafter, the appeal was adjourned to 16/06/2022. On the said date, the ld. Authorized Representative for the assessee prayed for adjournment. On the request of ld. Authorized Representative for the assessee, the appeal was adjourned to 20/07/2022. On 20/07/2022 none appeared to represent the assessee. Fresh notice was issued through RPAD for 25/08/2022. Again none appeared on the said date and the appeal was adjourned to 22/09/2022. On 22/09/2022 Shri Chintan Patel again appeared and the appeal was adjourned to 17/11/2022. None appeared to represent the assessee on 17/11/2022, hence, the appeal was adjourned to 23/01/2023. On 23/01/2023 again none appeared to represent the assessee and the appeal was adjourned to 29/03/2023. On 29/03/2023 Shri Chintan Patel again appeared and prayed for adjournment. At the request of ld. Authorized Representative for the assessee the appeal was adjourned to 27/04/2023. On 27/04/2023 none appeared to represent the assessee. From perusal of file it emanate that either none appeared on behalf of the assessee or the ld. Authorized Representative for the assessee appeared and sought adjournment. It seems that the assessee is not keen to pursue the appeal, therefore, the appeal is taken up for hearing with the assistance of ld. Departmental Representative and on the basis of material available on record. 3. The assessee in appeal has assailed addition of Rs.78,85,000/- u/s. 68 of the Income Tax Act, 1961 * in short ‘the Act’+ and consequential addition of Rs.1, 57,700/- u/s. 69C of the Act. The assessee has claimed long term capital gain from sale of shares of Shrinath Commercial and Finance Ltd. The Assessing Officer vide assessment order dated 30/12/2017 passed u/s. 143(3) 3 ITA NO. 296/MUM/2022(A.Y. 2013-14) r.w.s. 147 of the Act held the transaction of sale of shares as bogus. The Assessing Officer held the script to be penny stock and made addition of Rs.78,65,000/- u/s. 68 of the Act. The Assessing Officer further made addition on account of unexplained payment of commission Rs.1,57,700/- u/s. 69 C of the Act. In first appeal the assessee remained unsuccessful. Hence, the present appeal. 4. The assessee has filed Paper Book containing submissions filed before the Assessing Officer and the CIT(A). The assessee has also furnished copies of decisions on which he has placed reliance. 5. Per contra, Shri Chetan M.Kacha representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. The ld. Departmental Representative submits that documents on record reveal that it is typical case of penny stock. The assessee has claimed long term capital gain of Rs.68,85,000/- on sale of one lac shares of M/s. Shrinath commercials Finance Ltd. The said company is tainted. The share price of the said company was rigged. In short span of 15 months the market price of shares of the said company increased from Rs.140/- to 800/- per share. The assessee failed to explain unusual rise in the share prices of the Company. The ld. Departmental Representative thus, prayed for upholding the impugned order and dismissing the appeal of assessee. 6. We have heard the submissions made by ld. Departmental Representative and have examined the written submissions filed by the assessee. We have also considered the case laws on which reliance has been 4 ITA NO. 296/MUM/2022(A.Y. 2013-14) placed by the assessee. We concur with the findings of the CIT(A). We find no merit in the appeal of assessee, hence, the same is dismissed. 7. Before parting we record that, if so advised, the assessee may approach the Tribunal by way of Miscellaneous Application explaining reasons for non- appearance of the assessee or his Authorized Representative on the date fixed for hearing. 8. In result, appeal of the assessee is dismissed. Order pronounced in the open court on Friday the 28 th day of April, 2023. Sd/- Sd/- (GAGAN GOYAL) (VIKAS AWASTHY) रेखाकाय सदस्म/ACCOUNTANT MEMBER न्मायमक सदस्म/JUDICIAL MEMBER भ ुंफई/ Mumbai, ददनाुंक/Dated 28/04/2023 Vm, Sr. PS(O/S) प्रतिलिपि अग्रेपििCopy of the Order forwarded to : 1. अऩीराथी/The Appellant , 2. प्रयििादी/ The Respondent. 3. The PCIT 4.. विबागीम प्रयियनधध, आम.अऩी.अधध., भ फुंई/DR, ITAT, Mumbai 5. गार्ड पाइर/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar), ITAT, Mumbai