M/s. Nopany Investments Pvt. Ltd., Kolkata V. ACIT, CC - XI, Kolkata, Kolkata

MA 13/KOL/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 7810 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 03-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE , ! ! ! ! /AND ' !' ' !' ' !' ' !' , ) [BEFORE SHRI PRAMOD KUMAR, AM & SHRI MAHAVIR SINGH, JM] # # $ # # $ # # $ # # $ !% !% !% !% /M. A. NO. 13/KOL/2012 !% !% !% !% /IN I.T.A NO. 2171/KOL/2010 $& '( $& '( $& '( $& '(/ // / ASSESSMENT YEAR: 2006-07 M/S. NOPANY INVESTMENTS PVT. LTD. VS. ASSIST ANT COMMISSIONER OF INCOME-TAX, (PAN: AAACN8354R) CENTRAL CIRCLE-XI, KOLKATA. ( /APPLICANT ) (*+,/ RESPONDENT ) - . /FOR THE APPLICANT: SHRI S. JHAJHARIA *+, - . /FOR THE RESPONDENT: SHRI S. K. ROY / / ORDER PER MAHAVIR SINGH, JM/ ' !' ' !' ' !' ' !' , : THIS MISCELLANEOUS PETITION FILED BY ASSESSEE IS DI RECTED AGAINST THE ORDER PASSED BY TRIBUNAL DATED 01.07.2011 IN ITA NO.2171/K/2010 FOR ASSESSMENT YEAR 2006-07. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE STAT ED THAT THE TRIBUNALS ORDER DATED 01.07.2011 IN ITA NOS. 2169 TO 2171/K/2010 FOR ASSE SSMENT YEARS 2004-05 TO 2006-07 IS A CONSOLIDATED ORDER BUT THE ASSESSEE STATED THAT THE ISSUE IN ASSESSMENT YEAR 2006-07 RAISED BY WAY OF GROUND NO. 2 IS ENTIRELY DIFFERENT. LD. COU NSEL FOR THE ASSESSEE STATED THAT IN ASSESSMENT YEAR 2006-07 IN ITA NO.2171/K/2010 WHETH ER THE ASSESSEE BEING AN NBFC HAS EARNED SUBSTANTIAL BUSINESS INCOME FROM PURCHASE AN D SALE OF SECURITIES, WHICH WAS DULY OFFERED FOR TAXATION AND ASSESSED AS SUCH. LD. COU NSEL FOR THE ASSESSEE DREW OUR ATTENTION TO GROUND NO. 2, WHICH READS AS UNDER: 2.(A) THAT ON THE FACTS AND ON THE CIRCUMSTANCES O F THE CASE THE CIT(A) HAS GROSSLY ERRED IN HOLDING THAT THE APPELLANT HAD NO BUSINESS INCOME F OR THE PREVIOUS YEAR ENDED 31 ST MARCH, 2006, RELEVANT TO THE ASSESSMENT YEAR 2006-07 WITH OUT APPRECIATING THE FACT THAT THE APPELLANT BEING A NBFC HAS EARNED SUBSTANTIAL BUSIN ESS INCOME FROM PURCHASE AND SALE OF SECURITIES/SHARES, WHICH WAS DULY OFFERED TO TAX AN D WAS DULY ASSESSED BY THE A.O. AS BUSINESS INCOME WHILE FRAMING THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT. SUCH ACTION OF THE CIT(A) IS BAD IN LAW, ILLEGAL AND AB INITIO VOID AND THE DISALLOWANCE MADE, TO THIS EFFECT IS LIABLE TO BE CANCELLED/QUASHED/SET ASIDE. (B) EVEN OTHERWISE AND WITHOUT PREJUDICE TO THE ABO VE, THE DISALLOWANCE/ADDITION SO MADE IS HIGHLY EXCESSIVE AND UNREASONABLE. 2 MA NO. 13/K/2012 M/S. NOPANY INVESTMENTS PVT. LTD. A. Y 2006-07 LD. COUNSEL FOR THE ASSESSEE, IN VIEW OF THE ABOVE, STATED THAT THIS ISSUE WAS NEVER DELIBERATED BY TRIBUNAL IN ITS ORDER AND, HE DREW OUR ATTENTION TO THE FINDING AND CONCLUSION OF THE TRIBUNALS ORDER AS RECORDED IN PARA 6. WE FIND TH AT THIS ISSUE RAISED BY ASSESSEE IN THIS APPEAL HAS NOT BEEN DEALT WITH, THIS IS AS PER OUR OBSERVA TIONS AFTER GOING THROUGH PARA 6 OF THE TRIBUNALS ORDER. THIS BEING A CONSOLIDATED ORDER FOR THREE YEARS, WE RECALL THIS ORDER QUA ASSESSMENT YEAR 2006-07 AND DIRECT THE REGISTRY TO RE-FIX THE HEARING ON 17.07.2012 FOR FRESH ADJUDICATION. WE FIND THAT THIS IS A MISTAKE APPAR ENT FROM RECORD. HENCE, THIS MA OF ASSESSEE BEING M.A. NO. 13/K/2012 ARISING OUT OF ITA NO.2171 /K/210 IS ALLOWED. 3. IN THE RESULT, THE ASSESSEES MISC. PETITION STA NDS ALLOWED. 4. ORDER IS PRONOUNCED IN THE OPEN COURT ON 23.03.2 012. SD/- SD/- , ' !' ' !' ' !' ' !' , (PRAMOD KUMAR) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( 0 0 0 0) )) ) DATED : 23RD MARCH, 2012 12 $34 5 JD.(SR.P.S.) / - # 6#'7- COPY OF THE ORDER FORWARDED TO: 1 . /APPLICANT M/S. NOPANY INVESTMENTS PVT. LTD., C/ O SALARPURIA JAJODIA & CO., 7, C.R. AVENUE, KOLKATA-700 072 2 *+, / RESPONDENT ACIT, CENTRAL CIRCLE-XI, KOLKATA. 3 . /$ ( )/ THE CIT(A) , KOLKATA 4. CIT, KOLKATA 5 . >? $ / DR, KOLKATA BENCHES, KOLKATA *# / TRUE COPY, /$/ BY ORDER, ' !4 /ASSTT. REGISTRAR .