ATULKUMAR AMRITLAL SANGHAVI (HUF), MUMBAI V. ITO WD 16(2)(2), MUMBAI

ITA 5214/MUM/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8373 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 14-08-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES SMC, MUMBAI . . , BEFORE SHRI I P BANSAL, JUDICIAL MEMBER ./ITA NO.5214/MUM/2014 ( / ASSESSMENT YEAR:2004-05) ATULKUMAR AMRITLAL SANGHAVI (HUF), 1607 B, SANKAR SHETH PALACE, TARDEO ROAD, GRANT ROAD, MUMBAI 400 007 PAN AAAHS4876A VS. THE ITO 1 6 ( 2 )( 2 ), MUMBAI ( ! /APPELLANT) ( '# ! / RESPONDENT) APPELLANT BY : MS. VINITA SHAH RESPONDENT BY : MR. NEIL PHILIP DATE OF HEARING : 27.11.2014 DATE OF PRONOUNCEME NT :27.11.2014 $ / O R D E R THIS APPEAL IS FILED BY THE ASSESSEE. IT IS DIRECT ED AGAINST THE ORDER PASSED BY THE CIT(A) 27, DATED 05.05.2014, FOR A.Y. 2004-05 . THE GROUNDS OF APPEAL READ AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS W ELL AS IN LAW, THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE ACTI ON OF THE LEARNED ASSESSING OFFICER IN REOPENING THE CASE, WITHOUT CO NSIDERING THE PROVISION OF LAW. 2. ON THE FACT AND CIRCUMSTANCES OF THE CASE AS WEL L AS IN LAW, THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE ACTION O F THE LEARNED ASSESSING OFFICER IN MAKING AN ADDITION OF RS.2,20, 140/- AS ALLEGED UNDISCLOSED INCOME ON ACCOUNT OF SALE CONSIDERATION OF SALE OF 4600 SHARE OF M/S. TALENT INFOWAYS LTD., WITHOUT CONSIDE RING THE FACTS & CIRCUMSTANCES OF THE CASE. 2 ITA NO.5214/MUM/2014 AY:2004-05 2. AT THE TIME OF HEARING, THE LEARNED AR DID NOT P RESS GROUND NO.1. THEREFORE, THE SAME IS DISMISSED BEING NOT PRESSED. 3. AS PER INFORMATION RECEIVED BY THE AO FROM DDI ( INVESTIGATION), THE ASSESSEE WAS BENEFICIARY OF ALLEGED BOGUS BILLS OF TRANSACTI ONS FROM M/S. GOLDSTAR FINVEST PVT. LTD. ACCORDINGLY, THE CASE WAS REOPENED AND SALE V ALUE OF THE SHARES OF M/S. TALENT INFOWAYS LTD. AMOUNTING TO RS.2,20,2140/- WAS ADDED TO THE INCOME OF THE ASSESSEE. THE DISALLOWANCE HAS BEEN UPHELD BY THE LEARNED CIT(A). IT MAY BE MENTIONED HERE THAT IT HAS BEEN THE CASE OF THE ASS ESSEE THAT SALE OF SHARES DID NOT TAKE PLACE IN THE RELEVANT FINANCIAL YEAR AS THE SA LE TOOK PLACE ON 20.05.2004. THEREFORE, THE TRANSACTION OF SALE OF SHARES CANNOT BE CONSIDERED AS INCOME IN THE PRESENT YEAR. NEITHER THE PURCHASE WAS DONE DURING THE YEAR NOR HAS THE SALE BEEN AFFECTED DURING THE YEAR. IT IS ALSO A MATTER OF F ACT THAT THE SAME AMOUNT HAS BEEN ADDED BY THE DEPARTMENT IN AY 2005-06 AS IT CAN BEE N SEEN FROM THE ASSESSMENT ORDER DATED 23.01.2013 FOR A.Y. 2005-06. COPY OF T HE SAID ORDER IS PLACED AT PAGES 32 TO 36 OF THE PAPER-BOOK. THUS, IT IS THE CASE O F THE ASSESSEE THAT THE LEARNED CIT(A) HAS WRONGLY UPHELD THE ADDITION. THE DATE O F SALE OF SHARES IS SUPPORTED BY DOCUMENTARY EVIDENCE, COPY OF WHICH ARE ALSO FILED AT PAGES 24 TO 26 OF THE PAPER- BOOK. 4. ON THE ABOVE FACTS, I HAVE HEARD BOTH THE PARTIE S. SINCE, NEITHER THE PURCHASE NOR THE SALE HAS BEEN MADE BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION, THE ADDITION IN THE YEAR UNDER CONSI DERATION CANNOT BE SUSTAINED. ACCORDINGLY, THE SAME IS DELETED AND GROUND NO.2 IS ALLOWED. 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF NOVEMBER, 2014. SD/- (I P BANSAL) JUDICIAL MEMBER MUMBAI, DT : 27 TH NOVEMBER, 2014 SA 3 ITA NO.5214/MUM/2014 AY:2004-05 COPY FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE C.I.T, CONCERNED 4. THE CIT (A)-CONCERNED 5. THE DR, SMC BENCH, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI