M/S. ANNAPURNA PROPERTIES,KOLKATA V. DCIT, CIRCLE - 31, KOLKATA, KOLKATA

ITA 1083/KOL/2024

AI Insights

The case involves M/s. Annapurna Properties appealing against the order of the Commissioner of Income Tax (Appeals), which upheld the validity of an order passed under section 143(3) of the Income Tax Act, 1961. The primary contention was regarding the disallowance of a short-term capital loss of Rs.85,23,271 under section 68, which the assessee argued was unjustly treated as an accommodation entry. The assessee had also availed the Vivad Se Vishwas, 2024 scheme, leading to the request for withdrawal of the appeal. The Tribunal acknowledged the withdrawal request and dismissed the appeal accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474055 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SAILEN SAMADDER
• Assessee Lawyers: SIDDARTH
• Keywords: Principle of natural justice
• Section: 143(3); 250; 68; 10

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA BEFORE SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No. 1083/KOL/2024 Assessment Year: 2014-15 M/s. Annapurna Properties, C/o M/s. Salarpuria Jajodia & Co., 7, C.R. Avenue, 3rd Floor Kolkata – 700072, West Bengal Vs DCIT, Circle-31, Kolkata, Form No. 10B, Middleton Road, Kolkata – 700016, West Bengal (Appellant) (Respondent) PAN: AAEFA5641D Present for: Appellant by : Shri Siddarth , FCA Respondent by : Shri Sailen Samadder, Addl. CIT, Sr. D.R. Date of Hearing : 15.01.2025 Date of Pronouncement : 21.01.2025 O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, New Delhi (hereinafter referred to as “the Ld. CIT (A)”) passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2014-15 dated 26.03.2024, which has been passed against the order u/s 143(3) of the Act, dated 26.12.2016. 2. The assessee has raised the following Grounds of appeal: 1. For that in view of the facts and in the circumstances, the Ld. CIT(A) was wholly unjustified in upholding the validity of the order passed u/s 143(3) and in view of the facts and in the circumstances such action of the Ld. CIT(A) is bad in law and in view of the facts and in the circumstances it may be held accordingly. Page | 2 ITA No.1083/KOL/2024 M/s. Annapurna Properties; A.Y. 2014-15 2. For that in view of the facts and in the circumstances, the Ld. CIT(A) was wholly unjustified in disallowing short term capital loss of Rs.85,23,271/- u/s 68 with a completely biased prejudiced and predetermined view and in view of the facts and in the circumstances the action of the Ld. CIT(A) in such respect is bad in law and the treatment so made by AO and affirmed b Ld. CIT(A) is liable to be deleted and it may be held accordingly. 3. Without prejudice to Ground No. 2 above, the Ld. CIT(A) erred in not appreciating the fact that the AO while making such addition u/s 68 for Rs.85,23,271- on premises of the alleged accommodation entry and such amount being the consideration towards loss on account of sale of shares and the AO never having made any independent verification or examination of the buyers of the shares and/or other persons involved in such transaction and hence the impugned addition suffers \"lack of principle of natural justice\" and as such the addition so made in such respect is bad in law and it may be held accordingly. 4. For that your petitioner craves the right to put additional grounds and/or to alter/ amend/ modify the present grounds at the time of hearing. 3. At the outset, it was informed by the Ld. AR that the assessee has availed the Vivad se Vishwas, 2024 scheme. Since the assessee has opted for the Vivad Se Vishwas Scheme, hence the present appeal was requested to be withdrawn. The Ld. DR did not object to the withdrawal of the appeal. 4. As per S. No. 10 of the Guidance Note 1/2024 on provisions of the Direct Tax Vivad se Vishwas Scheme, 2024 dated 15th October, 2024, it is mentioned that as per section 91 (2) of the Scheme, after filing of declaration, appeals before ITAT/CIT(A)/ JCIT(A) are deemed to be withdrawn from the date of issue of certificate by the Designated Authority. Further as per section 91(3) of the Scheme, the taxpayer is required to withdraw appeals and furnish proof thereof along with intimation of payment u/s 92(2) of the Scheme. Since the assessee has requested for withdrawal of the appeal, he is permitted to withdraw the same and the appeal is dismissed as withdrawn. However, if the subsequent facts warrant that the appeal Page | 3 ITA No.1083/KOL/2024 M/s. Annapurna Properties; A.Y. 2014-15 should be heard on merits, the assessee shall be at liberty to file a Miscellaneous Application for restoration of the appeal. 5. In the result, the appeal of the assessee is dismissed as withdrawn. Order pronounced in the Court on 21st January, 2025 at Kolkata. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAKESH MISHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 21.01.2025 *Bidhan, Sr.Ps Page | 4 ITA No.1083/KOL/2024 M/s. Annapurna Properties; A.Y. 2014-15 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अिीिार्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. संबंतिि आयकर आयुक्त / Concerned Pr. CIT 4. आयकर आयुक्त ( अिीि ) / The CIT(A)- 5. तिभागीय प्रतितिति , अतिकरण अिीिीय आयकर , कोिकािा/DR, ITAT, Kolkata, 6. गार्ड फाईि / Guard file. आदेशािुसार/ BY ORDER, TRUE COPY Sr. PS/ Assistant Registrar आयकर अिीिीय अतिकरण ITAT, Kolkata Sr. No. Particulars Date Initials Person concerned 1 Drafted on 17.01.2025 Sr.PS 2 Draft placed before author 17.01.2025 Sr.PS 3 Draft proposed & placed before the second Member 17.01.2025 JM 4 Draft discussed/approved by Second Member JM 5 Approved Draft comes to the Sr.PS/PS Sr.PS 6 Kept for pronouncement on Sr.PS 7 File sent to the Bench Clerk Sr.PS 8 Date on which file goes to the Head Clerk 9 Date of dispatch of Order 10 Dictation Sheet is attached herewith No "