Enkay Trafin Pvt. Ltd., Kolkata V. I.T.O., Ward-10(1), Kolkata, Kolkata

MA 12/KOL/2023

AI Insights

The case involves Enkay Traffin Pvt. Limited, which filed a miscellaneous application against the order of the Income Tax Appellate Tribunal, Kolkata, dated 19/09/2022. The original dispute pertained to the treatment of certain share transactions as 'penny stock' leading to alleged bogus losses. The assessee argued that the Tribunal erred in applying a recent judgment from the Calcutta High Court without adequately considering the merits of their case. The Tribunal, however, found that it had already provided a detailed finding of fact and that the application did not point out any specific apparent error, thus dismissing the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132681 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 06-07-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 30-01-2023
• Other Referred Cases: PCIT vs. Swati Bajaj, Praksh Chand Mehta vs. CIT, Patel Nareshi Thakershe vs. Pradyum Singhji Arjun Singhji
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 254(2)

Judgement Text

| आयकर अपीलीय अिधकरण ᭠यायपीठ, कोलकाता | IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER M.A. No. 12/Kol/2023 A/o ITA No. 384/Kol/2022 Assessment Year: 2014-15 Enkay Traffin Pvt. Limited C/o Subash Agarwal & Associates, Advocates Siddha Gibson 1, Gibson Lane Suite No. 213, 2 nd Floor Kolkata - 700069 [PAN : AAACE5682P] Vs Income Tax Officer, Ward-10(1), Kolkata अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : Shri Ritesh Goel, Advocate Revenue by : Shri Vijay Kumar, Addl. CIT D/R सुनवाई कᳱ तारीख/Date of Hearing : 07/07/2023 घोषणा कᳱ तारीख /Date of Pronouncement: 24/07/2023 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The present miscellaneous application has been filed by the assessee against the order of this Tribunal dt. 19/09/2022 in ITA No. 384/Kol/2022. 2. The effective prayer of the assessee reads as follows:- “2. It is stated that that the impugned Order dated 19 th September, 2022 passed by the Hon'ble Income Tax Appellate Tribunal grossly erred in treating the assessee's case as penny stock and covering the assessee's case by the recent judgment of Hon'ble Calcutta High Court vide common order dated 14.06.2022 in a batch of 90 appeals with a lead case titled as PCIT -vs- Swati Bajaj 3. It is stated that there is genuine loss of Rs. 39,00,270/- and purchased the said shares in the that the assessee has normal course. M.A. No. 12/Kol/2023 A/o ITA No. 384/Kol/2022 Assessment Year: 2014-15 Enkay Traffin Pvt. Limited 2 4. It is stated that Hon'ble tribunal did not go into the merits of the Assessing Officer's view that the assessee purchased the shares when the prices alleged penny stock companies are almost at its peak and brokers were going to start its downward cycle to provide bogus short- term capital loss/trading loss/ loss in valuation of closing stock adopting market price and the assesse-company has pre-arranged the bogus loss. 5. It is stated that the tribunal merely on submissions inferred that the assessee's case is similar to the facts dealt by the Hon'ble Jurisdictional High Court in the case of Swati Bajaj and confirming the additions made by the Ld. Assessing Officer in respect of the losses claimed by the assesse. 6. It is humbly prayed therefore to kindly restore the matter and pass the order on merits and for that act of kindness your petitioner shall humbly pray.” 3. We, however, find that the detailed finding of fact has been given by this Tribunal and no specific apparent error has been pointed out by the ld. Counsel for the assessee through its submission rather, it requires an exercise of revisiting the merits of the case. The scope of section 254(2) of the Act is very limited and it is only the apparent error, which can be rectified, and the Tribunal can be held to be justified in rejecting the application for rectification raising a matter relating to the merit of the case and not involving an apparent mistake to be rectified as held in the case of Praksh Chand Mehta vs. CIT, 220 1TR 277 (M.P). It is further added that section 254(2) of the Act vests a discretionary power on the Tribunal and does not confer a right on the M.A. No. 12/Kol/2023 A/o ITA No. 384/Kol/2022 Assessment Year: 2014-15 Enkay Traffin Pvt. Limited 3 assessee and further there is no inherent power conferred on the Tribunal of reviewing its own decision, taken on merits, as held by the Supreme Court in the case Patel Nareshi Thakershe vs. Pradyum Singhji Arjun Singhji (AIR 970 SC 1273). The Income Tax Act has not conferred jurisdiction on the Tribunal to review and revise its order, as the Tribunal is not a Court and it has no power to review its own orders adjudicated on merits. In view of the above legal and factual discussions, all the issue raised by the assessee in the impugned Miscellaneous Application are dismissed. 4. In the result, miscellaneous application filed by the assessee is dismissed. Order pronounced in the Court on 24 th July, 2023 at Kolkata. Sd/- (DR. MANISH BORAD) ACCOUNTANT MEMBER Kolkata, Dated 24/07/2023 *SC SrPs M.A. No. 12/Kol/2023 A/o ITA No. 384/Kol/2022 Assessment Year: 2014-15 Enkay Traffin Pvt. Limited 4 आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent 3. संबंिधत आयकर आयुᲦ / Concerned Pr. CIT 4. आयकर आयुᲦ)अपील (/ The CIT(A)- 5. िवभागीय ᮧितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाडᭅ फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Kolkata