SIDDHARTH D METHA ( HUF), MUMBAI V. DCIT 25(3), MUMBAI

ITA 5457/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2286 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2016
• Appeal Filed By: Assessee
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 28-08-2014
• Court: TRIBUNAL
• Department Lawyers: A K KARDA M
• Keywords: Business income; Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER I.T.A. NO.5457/M/2014 (ASSESSMENT YEAR: 2010 - 2011) SIDDHARTH D MEHTA (HUF), PENT HOUSE 2002/2102, TOWER NO.4, RUSTOMJEE OZONE, GOREGAON MULUND LINK ROAD, GOREGAON (W), MUMBAI 62. / VS. DY. CIT 25(3), C - 11, PRATYAKSHAKAR BHAVAN, BKC, MUMBAI 51. ./ PAN : AAHHM0060M ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI K. GOPAL / RESPONDENT BY : SHRI A.K. KARDAM, DR / DATE OF HEARING : 26.10.2016 / DATE OF PRONOUNCEMENT : 26.10.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 28.8.2014 IS AGAINST THE ORDER OF THE CIT (A) - 35, MUMBAI DATED 23.6.2014 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. IN THIS APPEAL, ASSESSEE RAISED THREE GROUNDS IN TOTO. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE GROUNDS RAISED IN THIS APPEAL AND MENTIONED THAT THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO THE TREATMENT GIVEN BY THE AO AS BUSINESS INCOME TO THE GAINS EARNED ON PURCHASE AND SALE OF SHARES . ASSESSEE CLAIMED THE SAME A SHORT TERM CAPITAL GAINS. IN THIS REGARD, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ORDER S OF THE AUTHORITIES ARE PRIOR TO THE CIRCULAR NO.6/2016, DATED 29.2.2016 ISSUED BY THE CBDT. IT IS THE PRAYER OF THE LD COUNSEL FOR THE ASSESSEE BEFORE US THAT THE ISSUE MAY BE REMANDED TO THE FILE OF THE AO TO DECIDE THE SAME IN THE LIGHT OF THE SAID CIRCULAR READ WITH THE ORDER OF THE TRIBUNAL IN THE CASE OF ACIT VS. DR. P.S. PASRICHA IN ITA NO.6808/M/2003 (2001 - 2002), DATED 11.1 .2008. 2 3. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE CITED CIRCULAR OF THE BOARD AND THE DECISION OF THE TRIBUNAL (SUPRA), WE FIND, IT IS APPROPRIATE TO REMAND THIS ISSUE TO THE FILE OF THE AO TO DECIDE THE MATTER AFRESH CONSIDERING THE ABOVE CITED CIRCULAR AS WELL AS THE DECISION OF THE TRIBUNAL DATED 11.1.2008 (SUPRA) AND OTHER EVIDENCES, IF ANY, IN THE MATTER. AO SHALL GRANT A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER THE SE T PRINCIPLES OF NATURAL JUSTICE. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH OCTOBER, 2016. S D / - S D / - ( AMARJIT SINGH ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 26.10 .2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 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