Ramehs Kumar HUF, Chennai V. ITO, Non Corp Ward 9(5), Chennai

ITA 828/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1527 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 27-03-2019
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI [ , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.828/CHNY/2019 ( [ [ / ASSESSMENT YEAR:2014-15) SHRI RAMESH KUMAR (HUF), 113, VAIBHAV APPTS, 62, EVK SAMPATH ROAD, VEPERY, CHENNAI 600 007. VS THE INCOME TAX OFFICER, NON-CORPORATE WARD 9(5), CHENNAI. PAN: AAEHR3984C ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : NONE / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT /DATE OF HEARING : 11.06.2019 /DATE OF PRONOUNCEMENT : 11.06.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-10, CHENNAI IN APPEAL NO.14/17-18/CIT(A)-10 DATED 31.01.2019 FOR THE ASSESSMENT YEAR 2014-15 2. NONE REPRESENTED ON BEHALF OF THE ASSESSEE. SHRI AR.V. SREENIVASAN REPRESENTED ON BEHALF OF THE REVENUE. 2 ITA NO.828/CHNY/2019 3. THE NOTICE FOR HEARING HAS BEEN SERVED ON THE ASSESSEE AND THE ACKNOWLEDGEMENT CARD IS PLACED ON RECORD. THE PERUSAL OF THE FACTS OF THE PRESENT CASE CLEARLY SHOWS THAT THE APPEAL FILED IS DEFECTIVE IN SO FAR AS THE FEES HAS NOT BEEN PAID UNDER THE SPECIFIED HEAD AND FORM 26AS HAS NOT BEEN FILED. THE DEFECT MEMO HAS BEEN ISSUED TO THE ASSESSEE AND SERVED ALONG WITH THE HEARING NOTICE. ON MERITS, IT IS NOTICED THAT THE ISSUE IS WITH RESPECT OF PENNY STOCK. IT IS SUBMITTED BY THE LD.DR THAT THE ASSESSEE HAS FAILED TO SUBSTANTIATE ITS CLAIM IN RESPECT OF THE PURCHASE OF SHARES OF M/S. KAPPAC PHARMA LTD., THROUGH OFF MARKET ROUTE IN PAPER FORM FROM A BROKER BASED AT AHMEDABAD. IT WAS THE SUBMISSION THAT SO ALSO IN RESPECT OF THE PURCHASE OF SHARES OF POTENTIAL TRADE LINK PVT. LTD. IT WAS THE SUBMISSION THAT IN VIEW OF THE DECISION OF THE HONBLE JURISDICTIONAL MADRAS HIGH COURT IN THE CASE OF SMT. THARAKUMARI IN TAX CASE APPEAL NO.128 OF 2019 AND C.M.P. NO.3353 OF 2019 DATED 11.02.2019, THE APPEAL OF THE ASSESSEE IS LIABLE TO BE DISMISSED. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ASSESSEE HAS NOT BROUGHT ANY EVIDENCE BEFORE THE LOWER AUTHORITIES NOR BEFORE US TO SHOW AS TO HOW THE ASSESSEE HAS IDENTIFIED THE SAID SPECIFIC COMPANIES FOR INVESTMENTS AND AS THE ASSESSEE HAS BEEN UNABLE TO SHOW THE LONG TERM CAPITAL GAIN CLAIMED BY IT WAS 3 ITA NO.828/CHNY/2019 CORRECT, IN OUR OPINION, THE LOWER AUTHORITIES ARE JUSTIFIED IN TAKING THE VIEW THAT THE CLAIM AROSE ON ACCOUNT OF SHAM TRANSACTION MADE THROUGH ENTRY PROVIDERS. IN THIS CIRCUMSTANCE, THE FINDING OF THE LOWER AUTHORITIES ARE UPHELD AND THE APPEAL IS DISMISSED ON BOTH THE GROUNDS, ON ACCOUNT OF NON RECTIFICATION OF DEFECTS AND ALSO ON MERITS. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 11 TH JUNE, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 11 TH JUNE, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. [ /GF ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) /JUDICIAL MEMBER