Sangeeta Kesharwani, Howrah V. ITO, Ward - 47(3), Kolkata , Kolkata

ITA 641/KOL/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 8778 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 09-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PROBHAS ROY J
• Assessee Lawyers: PINKI SHAW
• Keywords: Transactions in derivatives
• Section: 201

Judgement Text

, B , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 641 / KOL / 201 8 ASSESSMENT YEAR :2008-09 SANGEETA KESHARWANI 134F, SUKHI SANSAR APARTMENT, SALKIA SCHOOL ROAD, GOLABARI, HOWRAH- 711 106 [ PAN NO.AGVPK 8338 A ] V/S . INCOME TAX OFFICER WARD-47(3), 3,GOVT. PLACE (WEST), KOLKATA-700 001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI PINKI SHAW, AR /BY RESPONDENT SHRI PROBHAS ROY, JCIT-DR /DATE OF HEARING 13 -11-2019 /DATE OF PRONOUNCEMENT 20-11-2019 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2008-09 ARISES AGAINST COMMISSIONER OF INCOME TAX (APPEALS)-14 KOLKATAS O RDER DATED 31.01.2018 PASSED IN CASE NO.68/CIT(A)-14/WD-47(3)/2016-17 UPH OLDING ASSESSING OFFICERS ACTION IMPOSING PENALTY OF 25,000/- INVOLVING PROCEEDINGS U/S 271A OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE PLEADE D IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUT HORITIES ACTION IMPOSING U/S 271A FOR NOT MAINTAINING BOOKS OF ACCOUNT REGAR DING DERIVATIVES TRADING IN STOCK EXCHANGE. THE ASSESSING OFFICER AS WELL AS CI T(A) ARE OF THE VIEW THAT THE ASSESSEES FUTURE AND OPTIONS TRANSACTIONS (F&O ) VALUE READS A FIGURE OF ITA NO.641/KOL/2018 A.Y . 2008-09 SANGEETA KESHARWANI. VS. ITO WD-47(3), KOL PAGE 2 15,77,30,672.32 IN THE IMPUGNED ASSESSMENT YEAR AND THEREFORE, SHE WAS SUPPOSED TO MAINTAIN HER BOOKS OF ACCOUNT U/S.44AB OF THE ACT. THERE IS DISPUTE THAT THE ASSESSEES PROFITS U/S44AF @ 0.25% ON TURNOVER COME TO 39,49,110/- AS AGAINST THE STATUTORY THRESHOLD LIMI T OF 40 LAC U/S 44AF OF THE ACT IN THE RELEVANT PREVIOUS YEAR. THE TRIBUNALS C O-ORDINATE BENCHS DECISION IN BANWARI SITARAM PASARI (HUF) VS. ACIT (2013) 140 ITD 320/29 TAXMANN.COM (PUNE TRIB.) HOLDS THAT THE TURNOVER IN SUCH CASE OF TRADING OF COMMODITIES AS A SPECULATION ACTIVITY DOES NOT INVO LVE TOTAL TRANSACTIONS FIGURE AS ADOPTED BY BOTH THE LOWER APPELLATE PROCE EDINGS. WE THEREFORE DELETE THE IMPUGNED PENALTY FORMING SUBJECT-MATTER OF INSTANT LIS ON THIS COUNT ALONE. 3. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT 20/ 11/2019 SD/- SD/- ( %) (' %) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP (- 20 / 11 /201 9 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SANGEETA KESHARWANI, 134F, SUKHI SANSAR APARTMENT, SALKIA SCHOOL ROAD, GO LABARI, HOWRAH-711 106 2. /RESPONDENT-ITO WD-47(3), 3, GOVT. PLACE (WEST), KO LKATA-700 001 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5. 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ 3,