Kousik Securities Pvt Ltd, Chennai V. ITO, Corp Ward -4(3), Chennai

ITA 554/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9157 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 05-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANATH KUMAR RAHA
• Keywords: Set aside
• Section: 69C

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL C SMC BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER ./ ITA NO.554/CHNY/2019 ' #$' / ASSESSMENT YEAR : 2015-16 M/S KOUSIK SECURITIES PVT. LTD., DOOR NO.9/6, FLAT LF K G SRIVATSA GARDENS, 9, SOUTH AVENUE, SRINAGAR COLONY, SAIDAPET, CHENNAI 600 015. PAN : AAACK 2193 F V. THE INCOME TAX OFFICER, CORPORATE WARD 4(3), CHENNAI - 600 034. (&'/ APPELLANT) (()&'/ RESPONDENT) &' * + / APPELLANT BY : SHRI KAUSHIK, ADVOCATE ()&' * + / RESPONDENT BY : SHRI SANATH KUMAR RAHA, JCIT , # * -. / DATE OF HEARING :03.07.2019 /0$ * -. / DATE OF PRONOUNCEMENT : 05.07.2019 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -8, CHENNAI, D ATED 03.01.2019 AND PERTAINS TO ASSESSMENT YEAR 2015-16. 2. THE FIRST ISSUE ARISES FOR CONSIDERATION IS ADDI TION OF 23,85,691/- UNDER SECTION 69C OF THE INCOME-TAX ACT, 1961 (IN S HORT 'THE ACT'). 2 I.T.A. NO.554/CHNY/19 3. I HEARD SHRI KAUSHIK, THE LD.COUNSEL FOR THE ASS ESSEE AND SHRI SANATH KUMAR RAHA, THE LD. DEPARTMENTAL REPRESENTAT IVE. THE DIFFERENCE IN PURCHASE AND SALE TO THE EXTENT OF 23,85,691/- COULD NOT BE RECONCILED BY THE ASSESSEE. THE ASSESSEE CLAIMED B EFORE THE AUTHORITIES THAT THE DOCUMENTS WERE WASHED AWAY IN WATER. THE ASSESSEE ALSO FILED AN AFFIDAVIT BEFORE THIS TRIBUNAL. THE ASSESSEE WA S ABLE TO PLACE THE STATEMENT RECEIVED FROM STOCK EXCHANGE. ACCORDING TO THE ASSESSEE, THE STATEMENT OF STOCK EXCHANGE DOES NOT REFLECT SA LES AND PURCHASES MADE WITHIN A DAY. THIS CRUCIAL ASPECT WAS BRUSHED ASIDE BY THE ASSESSING OFFICER AS WELL AS THE CIT(APPEALS). THE FACT THAT THE BILLS, VOUCHERS AND OTHER MATERIAL EVIDENCES WERE WASHED I N THE FLOOD IN THE YEAR 2015 IN THE CITY OF CHENNAI IS NOT DISPUTED BY THE REVENUE. THEREFORE, THE ASSESSMENT HAS TO BE COMPLETED ONLY ON THE BASIS OF MATERIAL AVAILABLE ON RECORD SUCH AS STATEMENT RECE IVED FROM STOCK EXCHANGE. THE ASSESSEE CLAIMS THAT SALES AND PURCH ASES MADE WITHIN A DAY WERE NOT REFLECTED IN THE STATEMENT ISSUED BY S TOCK EXCHANGE. THIS FACT NEEDS TO BE VERIFIED BY THE ASSESSING OFFICER. ACCORDINGLY, THE ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ADDITION MADE UNDER SECTION 69C OF THE ACT IS REMITTED BACK TO TH E FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE TH E MATTER AND FIND OUT WHETHER THE PURCHASES AND SALES MADE WITHIN A DAY W ERE REFLECTED IN THE STOCK EXCHANGE STATEMENT OR NOT AFTER REFERRING THE MATTER TO THE STOCK 3 I.T.A. NO.554/CHNY/19 EXCHANGE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESS EE. 4. THE NEXT ISSUE ARISES FOR CONSIDERATION IS ADDIT ION OF 1,50,472/-. THIS ADDITION IS DUE TO DIFFERENCE IN SALES REPORTE D BETWEEN THE ITS STATEMENTS AND THE PROFIT & LOSS ACCOUNT IN THE COM PUTATION OF TAXABLE INCOME. THE ASSESSING OFFICER FOUND THAT THE SALE S AS PER ITS STATEMENT IS 1,17,85,861/-. HOWEVER, THE SALES DISCLOSED IN THE PROFIT & LOSS ACCOUNT IS ONLY 1,16,35,389/-. THUS, THERE WAS A SUPPRESSION TO THE EXTENT OF 1,50,472/-. SINCE THIS IS A DIFFERENCE BETWEEN THE TWO STATEMENTS, THIS TRIBUNAL IS OF THE CONSIDERED OPIN ION THAT THE ASSESSEE HAS TO RECONCILE THE DIFFERENCE BEFORE THE ASSESSIN G OFFICER. ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES BELOW A RE SET ASIDE AND THE ADDITION OF 1,50,472/- IS REMITTED BACK TO THE FILE OF THE ASSE SSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE TH E MATTER AND AFTER CONSIDERING THE RECONCILIATION STATEMENT IF ANY FIL ED BY THE ASSESSEE, DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFT ER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4 I.T.A. NO.554/CHNY/19 ORDER PRONOUNCED IN THE COURT ON 5 TH JULY, 2019 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 2 /DATED, THE 5 TH JULY, 2019 KRI. * (-34 54$- /COPY TO: 1. &' /APPELLANT 2. ()&' /RESPONDENT 3. , 6- () /CIT(A)-8, CHENNAI 4. PRINCIPAL CIT-4, CHENNAI 5. 4#7 (- /DR 6. 8' 9 /GF.