GREATER INDIA PORTFOLIO, MUMBAI V. DDIT (IT) 3(1), MUMBAI

ITA 5296/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3440 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2016
• Appeal Filed By: Assessee
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 21-08-2014
• Court: TRIBUNAL
• Department Lawyers: K P R R MURTY
• Assessee Lawyers: R MURLIDHAR
• Keywords: Unexplained investment; Additional evidence
• Section: 69

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER I.T.A. NO.5296/M/2014 (ASSESSMENT YEAR: 2009 - 2010 ) GREATER INDIA PORTFOLIO (FORMERLY KNOWN AS SOUTH ASIA PORTGFOLIO), C/O. DELLOITTE HASKINS & SELLS, 12, DR. ANNIE BESANT ROAD, OFF SHIV SAGAR ESTATE, WORLI, MUMBAI 400 018. / VS. DEPUTY DIRECTOR OF INCOME TAX (IT) - 3(1), MUMBAI. ./ PAN : AAATS3449K ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI R. MURLIDHAR / RESPONDENT BY : SHRI K.P.R.R. MURTY, DR / DATE OF HEARING : 09 .03.2016 / DATE OF PRONOUNCEMENT : 1 7 .03.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 21.8.2014 IS AGAINST THE ORDER OF THE CIT (A) - 10, MUMBAI DATED 28.2.2014 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. IN THIS APPEAL, ASSESSEE RAISED SEVEN GROUNDS IN TOTO AND THEY REVOLVE AROUND THE ISSUE RELATING TO THE ADDITION OF RS. 38,05,948/ - MADE ON ACCOUNT OF UNEXPLAINED INVESTMENTS U/S 69 OF THE ACT. IN THIS REGARD, LD COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE ASSESSEE IS A FOREIGN INSTITUTIONAL INVESTOR (FII) AND REGISTERED VOLUMINOUS TRANSACTIONS IN TRADING SHARES. THE DEPARTMENT RECEIVED INFORMATION FROM AIR AND CALLED THE ASSESSEE FOR RECONCILIATION. DURING THE ASSESSMENT PROCEEDINGS, NEARLY MORE THAN 90% OF THE TRANS ACTIONS WERE RECONCILED LEAVING THE VOLUME OF TRANSACTIONS OF RS. 14.04 CRS INVOLVING FOUR TRANSACTIONS. THE DETAILS ARE GIVEN IN A TABLE AT PAGE 11 OF THE ORDER OF THE CIT (A) AND THE SAME IS AS UNDER: - 2 SL.NO. SCRIP NAME DATE OF PURCHASE QUANTITY AMOUNT 1 OIL AND NATURAL GAS CORPORATION LTD 7 - MAY - 08 20,483 2,12,49,142/ - 2. TATA STEEL LIMITED 19 - AUG - 08 1,86,623 11,17,50,130/ - 3. BHARTI AIRTEL LIMITED 13 - MAR - 09 6,500 36,31,900/ - 4. INDIABULLS REAL ESTATE LIMITED 26 - MAR - 09 36,176 38,05,948/ - 3. REFERRING TO SL. NOS. 1, 2 AND 3 ABOVE, LD COUNSEL FOR THE ASSESSEE DEMONSTRATED BEFORE US THAT THESE TRANSACTIONS WERE ALSO EVENTUALLY ACCEPTED BY THE AO AS EVIDENT FROM THE MODIFICATION ORDER DATED 19.3.2015 PASSED BY THE AO VIDE ANNEXURE - A TO THE ASSES SEES LETTER DATED 3.3.2016. ACCORDINGLY, THE RELEVANT ADDITIONS ARE REQUIRED TO BE DELETED. WE ORDER ACCORDINGLY. 4. REGARDING SL. NO.4 ABOVE, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE NOW SUBMITS ADDITIONAL EVIDENCE, PLACED AT ANNEXURE - B TO THE SAID LETTER DATED 3.3.2016 AND PLEADS FOR ADMITTING THE SAME AND REMANDING THE MATTER TO THE FILE OF THE AO FOR FRESH DECISION IN THIS REGARD. 5. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS TH E RELEVANT MATERIAL PLACED BEFORE US, WE FIND MERIT IN THE LD COUNSELS SUBMISSIONS. ACCORDINGLY, WE ADMIT THE SAID ADDITIONAL EVIDENCES AND REMAND THE SAME TO THE FILE OF THE AO FOR FRESH ADJUDICATION IN THIS REGARD. AO SHALL GRANT A REASONABLE OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED I N THE OPEN COURT ON 1 7 T H MARCH, 20 16. S D / - S D / - ( PAWAN SINGH ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 1 7 .3.2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 3 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI