ITO, Ward - 48(2), Kolkata, Kolkata V. Shakun Jain, Howrah

ITA 717/KOL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48055 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2011
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 12-04-2010
• Court: TRIBUNAL
• Department Lawyers: P P SARKAR
• Assessee Lawyers: S M SURANA
• Keywords: Additional evidence

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE , /AND , . . !' ) [BEFORE HONBLE SRI MAHAVIR SINGH, JM & HONBLE SHR I C. D. RAO, AM] # # # # / I.T.A NO. 717/KOL/2010 $% &' $% &' $% &' $% &'/ // / ASSESSMENT YEAR: 2006-07 INCOME-TAX OFFICER, WD-48(2), KOLKATA VS SHAKUN J AIN (PAN ADXPJ 9380 J) ( )* /APPELLANT ) (+,)*/ RESPONDENT ) FOR THE APPELLANT: SHRI P. P. SARKAR FOR THE RESPONDENT: SHRI S. M. SURANA !- / ORDER PER MAHAVIR SINGH, JM ( , , , , ) THIS APPEAL BY REVENUE IS ARISING OUT OF THE ORDER OF CIT(A)-XXX, KOLKATA IN APPEAL NO.313/CIT(A)-XXX/WD-48(2)/08-09 VIDE DATED 11.01.2010. THE ASSESSMENT WAS FRAMED BY ITO, WD-48(2), KOLKATA U/S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSME NT YEAR 2006-07 VIDE HIS ORDER DATED 31.12.2008. 2. THE ONLY ISSUE IN THIS APPEAL OF THE REVENUE IS AGAINST THE ORDER OF CIT(A) DELETING THE ADDITION OF UNDISCLOSED INVESTMENT AND UNDISCLOSED SHORT TERM CAPITAL GAIN ON THE TRANSACTION MADE WITH M/S. JHAVERI SECURITIE S LTD. AND M/S. LAKSHMI STEEL ROLLING MILLS (U-II). FOR THIS, REVENUE HAS CONTEN DED THAT THE CIT(A) HAS VIOLATED RULE 46A OF I. T. RULES, 1962 BY ADMITTING ADDITIONAL EV IDENCE WITHOUT PROVIDING OPPORTUNITY TO CONFRONT THE SAME TO THE ASSESSING O FFICER. FOR THIS, REVENUE HAS RAISED FOLLOWING TWO GROUNDS: 1. THE LD. CIT(A) WAS NOT CORRECT IN DELETING THE ADDITION MADE BY THE A.O. ON ACCOUNT OF UNDISCLOSED STCG AND UNDISCLOSED INVE STMENT MADE BY THE ASSESSEE IN SHARE TRANSACTION WITH M/S. JHAVERI SEC URITIES LTD. 2. THE LD. CIT(A) WAS NOT CORRECT IN ACCEPTING THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE IN CONNECTION TO M/S. LAKSHMI STEEL ROLLING MILLS (U-II) AT THE STAGE OF APPEAL WHICH VIOLATES RULE 46A OF THE I. T . RULES. 2 ITA 717/K/2010 SHAKUN JAIN . A.Y.06-07 3. AT THE OUTSET, THE LD. DR AS WELL AS LD. COUNSEL FOR THE ASSESSEE STATED THAT FOLLOWING DOCUMENTS REFERRED TO IN ASSESSEES PAPER BOOK AT PAGES 10 TO 45 AT SL. NOS. 4 TO 6, WHICH READS AS UNDER: 4. COMPUTATION OF INCOME OF THE PARTNERSHIP FIRM LAXMI STEEL ROLLING MILLS TOGETHER WITH ACKNOWLEDGMENT OF FILING OF THE RETUR N ALONG WITH DETAILS OF SHORT TERM CAPITAL GAIN AND RELEVANT CONTRACT NOTES WHICH HAS BEEN CONSIDERED BY THE A.O. IN THE HANDS OF THE ASSESSEE. 5. COPY OF ACCOUNT OF THE PARTNERSHIP FIRM LAXMI ST EEL ROLLING MILLS WITH JHAVERI SECURITIES LTD. 6. COPY OF THE CLARIFICATION SUBMITTED BY THE JHAVE RI SECURITIES PVT. LTD. CONFIRMING THAT THE PARTICULAR TRANSACTIONS IN SL. 4 RELATED TO THE PARTNERSHIP FIRM LAXMI STEEL ROLLING MILL AND THAT UNDER NSC RU LES THE DEMAT ACCOUNT WAS TO BE OPENED ONLY IN THE NAME OF THE PARTNER. ARE ADDITIONAL EVIDENCES AND FILED BEFORE THE CIT(A ) FOR THE FIRST TIME AND NO OPPORTUNITY WAS ALLOWED TO ASSESSING OFFICER TO CON FRONT THE SAME. THE LD. COUNSEL FOR THE ASSESSEE ALSO AGREED THAT LET THE ISSUE BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THESE DOCUMENTS ON THESE TWO ISS UES I.E. ASSESSMENT OF SHORT TERM CAPITAL GAIN AND UNDISCLOSED INVESTMENT WITH THE TR ANSACTIONS OF M/S. JHAVERI SECURITIES PVT. LTD. AND M/S. LAXMI STEEL ROLLING MILL (U-II). WE AFTER HEARING BOTH THE SIDES ARE OF THE VIEW THAT LET THESE DOCUMENTS BE VERIFIED BY THE ASSESSING OFFICER AND DECIDE THE ISSUE AFRESH QUA THESE ISSUES. WE SET ASIDE THIS AP PEAL OF REVENUE TO THE FILE OF THE ASSESSING OFFICER AND IS ALLOWED FOR STATISTICAL PU RPOSES. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. 5. ORDER PRONOUNCED IN OPEN COURT. SD/- SD/- . . !' , (C. D. RAO) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( ' ' ' ') )) ) DATED 20TH DAY OF APRIL, 2011 ./ $01 2 JD.(SR.P.S.) 3 ITA 717/K/2010 SHAKUN JAIN . A.Y.06-07 !- 3 +4 5!4&6- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT ITO, WD-48(2), KOLKATA. 2 +,)* / RESPONDENT, SHRI SHAKUN JAIN, 14, DR. H. K. CHATT ERJEE LANE, GHUSURI, HOWRAH-711107 3 . -$ ( )/ THE CIT(A), KOLKATA 4. -$ / CIT, KOLKATA 5 . => +$ / DR, KOLKATA BENCHES, KOLKATA ,4 +/ TRUE COPY, !-$?/ BY ORDER, 1 /ASSTT. REGISTRAR .