DCIT, Circle - 47, , Kolkata V. M/s. Jaychand Lal Chopra (HUF), Howrah

MA 298/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2576 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 30-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Keywords: Unexplained cash credit; Capital asset converted into stock in trade; Capital Gains
• Section: 254(2); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH KOLKATA [BEFORE SRI S. S. GODARA, JUDICIAL MEMBER] M.A NO.04/KOL/2020 (IN I.T.A NO.1649/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-48(1), KOLKATA VS. PRADEEP KR. PANSARI (HUF) SRI GANGA APARTMENT, 23, GUHA PARK, 3RD FLOOR, LILUAH, HOWRAH711204 ./ ./PAN/GIR NO.: AALHP 4741 G (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : NONE M.A NO.07/KOL/2020 (IN I.T.A NO.24/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-45(2), KOLKATA VS. SANJAY KUMAR AGARWAL P-6, MAJETI HOUSE, KALAKAR STREET, 4T H FLOOR, KOLKATA007 ./ ./PAN/GIR NO.: ACQPA 8886 J (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI ANUJ MUSADDI, A/R M.A NO.298/KOL/2019 (IN I.T.A NO.2075/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) DCIT, CIRCLE-47, KOLKATA VS. M/S JAYCHAND LAL CHOPRA [HUF] 88, BLOCK-G, 4T H FLOOR, RABINDRA NAGAR,A COMPLEX, COLLEGE ROAD, HOWRAH-711103 M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 2 ./ ./PAN/GIR NO.: AABHJ 7560 B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI MIRAJ D SHAH, AR M.A NO.300/KOL/2019 (IN I.T.A NO.23/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WD-43(4), KOLKATA VS. BABITA AGARWAL 30, ADDITION BANSTALLA LANE, BURRA BAZAR, KOLKATA-700007 ./ ./PAN/GIR NO.: ADVPA 0277 H (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI ANUJ MUSADDI, AR M.A NO.05/KOL/2020 (IN I.T.A NO.1374/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-48(4), KOLKATA VS. SURENDRA SHARMA VIKRAM VIHAR, BUNGLOW NO. 29/30, 3RD FLOOR, 493/B/61, G.T. ROAD (SOUTH), HOWRAH-711102 ./ ./PAN/GIR NO.: AUNPS 2017 G (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI AMIT AGARWAL, ADVOCATE M.A NO.299/KOL/2019 (IN I.T.A NO.2524/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WD-43(3), KOLKATA VS. SMT. ANITA DIGGA M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 3 GEETEA KATRA, 2ND FLOOR, 1, MULLICK STREET, KOLKATA700007 ./ ./PAN/GIR NO.: ADEPD 7460 H (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SUBASH AGARWAL, ADVOCATE M.A NO.304/KOL/2019 (IN I.T.A NO.2462/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WD-47(4), KOLKATA VS. KAILASH KUMAR MADHOGARIA (HUF) 42, DOBSON ROAD, 2 ND FLOOR, GOLABARI, HOWRAH-711101 ./ ./PAN/GIR NO.: AADHK 9853 N (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SUNIL SURANA, FCA M.A NO.16/KOL/2020 (IN I.T.A NO.1629/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-47(4), KOLKATA VS. JAYA MADHOGARIA C/O S.L. KOCHAR, ADVOCATE, 5, ASHUTOSH CHOUDHURY AVENUE, KOLKATA-700019 ./ ./PAN/GIR NO.: AITPM 8644 F (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : NONE M.A NO.17/KOL/2020 (IN I.T.A NO.1630/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 4 ITO, WARD-47(4), KOLKATA VS. VIVEK MADHOGARIA C/O S.L. KOCHAR, ADVOCATE, 5, ASHUTOSH CHOUDHURY AVENUE, KOLKATA-700019 ./ ./PAN/GIR NO.: BLEPM 6272 L (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : NONE M.A NO.08/KOL/2020 (IN I.T.A NO.78/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WARD-45(1), KOLKATA VS. SMT. SHILPI JAIN 174, RABINDRA SARANI, BURRABAZAR, KOLKATA700007 ./ ./PAN/GIR NO.: AGSPH 1244 R (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI MIRAJ D. SHAH, AR M.A NO.15/KOL/2020 (IN I.T.A NO.1737/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-47(3), KOLKATA VS. SHREE NIWAS LAHOTI, L/H OF MOHAN LAL LAHOTI 171, RAMKRISHNA LANE, SHIBPUR OPP PALLY MATH, HOWRAH-711102 ./ ./PAN/GIR NO.: ABAPL 6200 G (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SOMNATH GHOSH, ADVOCATE M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 5 M.A NO.06/KOL/2020 (IN I.T.A NO.2505/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-45(2), KOLKATA VS. SRI SUMIT JAIN 12/2 SOVARAM BYSACK STREET, BURRABAZAR, KOLKATA-700 007 ./ ./PAN/GIR NO.: AHZPJ 9406 B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI MIRAJ D. SHAH, ADVOCATE M.A NO.303/KOL/2019 (IN I.T.A NO.1739/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WD-47(3), KOLKATA VS. MAHESH LAHOTI 171, RAMKRISHNA LANE, OPPOSITE PALLY MATH, SHIBPUR, HOWRAH-711102 ./ ./PAN/GIR NO.: ACUPL 9515 D (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SOMNATH GHOSH, ADVOCATE M.A NO.295/KOL/2019 (IN I.T.A NO.832/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WD-2(3), PURBA BURDWAN VS. TAPATI SAHANA C/O S.N. GHOSH & ASSOCIATES, ADVOCATES SEBEN BROTHERS LODGE, P.O. BUROSHIBTALA, P.S.S CHINSURAH, DIST. HOOGHLY, PIN-712105 ./ ./PAN/GIR NO.: AJIPS 7560 E (APPELLANT) .. (RESPONDENT) M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 6 APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SOMNATH GHOSH, ADVOCATE M.A NO.302/KOL/2019 (IN I.T.A NO.1654/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WD-47(4), KOLKATA VS. SUSHILA MADHOGARIA C/O S.L. KOCHAR, ADVOCATE, 5, ASHUTOSH CHOWDHURY AVENUE, KOLKATA-19 ./ ./PAN/GIR NO.: AFHPM 6512 M (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SUNIL SURANA, FCA M.A NO.301/KOL/2019 (IN I.T.A NO.2461/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WD-47(4), KOLKATA VS. SHRI VIVEK MADHOGARIA 42, DOBSON ROAD, 2ND FLOOR, GOLABARI, HOWRAH711101 ./ ./PAN/GIR NO.: BLEPM 6272 L (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SUNIL SURANA, FCA M.A NO.296/KOL/2019 (IN I.T.A NO.833/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WD-2(3), PURBA BURDWAN VS. SOUVIK SAHANA C/O S.N. GHOSH & ASSOCIATES, ADVOCATES SEBEN BROTHERS LODGE, P.O. BUROSHIBTALA, P.S.S CHINSURAH, DIST. HOOGHLY, PIN-712105 M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 7 ./ ./PAN/GIR NO.: CAPPS 7002 B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SOMNATH GHOSH, ADVOCATE M.A NO.297/KOL/2019 (IN I.T.A NO.834/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WD-2(3), PURBA BURDWAN VS. SURAJ SAHANA C/O S.N. GHOSH & ASSOCIATES, ADVOCATES SEBEN BROTHERS LODGE, P.O. BUROSHIBTALA, P.S.S CHINSURAH, DIST. HOOGHLY, PIN-712105 ./ ./PAN/GIR NO.: BQFPS 1733 Q (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR RESPONDENT BY : SHRI SOMNATH GHOSH, ADVOCATE / DATE OF HEARING : 28/02/2020 /DATE OF PRONOUNCEMENT : 18/03/2020 / O R D E R PER SHRI S. S. GODARA: THE REVENUES INSTANT EIGHTEEN MISCELLANEOUS APPLICATIONS FILED U/S 254(2) OF THE ACT SEEK TO RECALL TRIBUNALS ORDER(S) REVERSING BOTH THE LEARNED LOWER AUTHORITIES ACTION ADDING LONG/SHORT TERM CAPITAL GAINS/LOSSES AS BOGUS UNEXPLAINED CASH CREDITS U/S 68 SINCE INVOLVING ALLEGED ARTIFICIAL RIGGING OF THE CORRESPONDING SCRIP PRICES IN COLLUSION WITH ENTRY OPERATORS CONCERNED. 2. I HAVE HEARD SHRI JAYANTA KHANRA, LEARNED DEPARTMENTAL REPRESENTATIVE AND THE ASSESSEE(S) THROUGH THEIR AUTHORIZED REPRESENTATIVE(S). MR. KHANRA VEHEMENTLY M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 8 CONTENDED DURING THE COURSE OF HEARING THAT THE TRIBUNAL HAS COMMITTED AN APPARENT ERROR ON RECORD WHILST DELETING THE IMPUGNED ADDITION(S) IN THESE CASES. IT IS EMPHASISED THAT THE ASSESSING OFFICER AS WELL AS THE CIT(A) HAD FOUND THESE ASSESSEES TO HAVE BEEN ENGAGED IN ARTIFICIAL RIGGING OF SCRIP(S) PRICES IN COLLUSION WITH ENTRY OPERATORS RESULTING IN THE ALLEGED BOGUS UNEXPLAINED CASH CREDITS ADDITION(S). IT IS LASTLY SUBMITTED THAT THE TRIBUNALS HAS ALSO NOT DISTINGUISHED THE ISSUES INVOLVED I.E LONG-TERM AND SHORT-TERM CAPITAL GAINS/LOSSES. 3. I HAVE GIVEN MY THOUGHTFUL CONSIDERATION TO THE REVENUES THREE FOLDED PLEADINGS. SUFFICE TO SAY, I MAKE IT CLEAR THAT SECTION 254(2) IS A REMEDY FOR MODIFICATION/RECTIFICATION IN CASE THERE IS AN APPARENT ERROR ON RECORD. I NOTICE THAT THE TRIBUNAL HAS TAKEN INTO CONSIDERATION ALL THE RELEVANT FACTS ON RECORD IN LIGHT OF VARIOUS JUDICIAL PRECEDENTS WHILST COMING TO THE CONCLUSION THAT THE LEARNED LOWER AUTHORITIES ACTION BASED ON CIRCUMSTANTIAL THAN ACTUAL EVIDENCE FOR THE PURPOSE OF TREATING THE LONG/SHORT-TERM CAPITAL GAINS/LOSSES, IS NOT LIABLE TO BE SUSTAINED. THE SAME CANNOT BE TERMED AS AN APPARENT ERROR ON RECORD WHICH COULD FORM SUBJECT MATTER OF SECTION 254(2) PROCEEDINGS. 5. NEXT COMES THE REVENUES LATTER PLEA(S) THAT THE TRIBUNAL HAS NOT DISTINGUISHED THE FACTUM OF THE ISSUE(S) INVOLVED I.E. LONG-TERM & SHORT-TERM CAPITAL GAINS/LOSSES BASED ON ENTRY OPERATORS COLLUSION WITH ASSESSEES. I FIND NO FORCE IN THESE ARGUMENTS AS WELL SINCE THE LEARNED LOWER AUTHORITIES HAVE FOLLOWED THE VERY REASONING IN THESE ASPECTS CAPITAL GAINS WITHOUT QUOTING ANY SPECIFIC MATERIAL AGAINST THESE ASSESSEES. AND ALSO THE LOWER AUTHORITIES HAD GONE BY IDENTICAL REASONING OF CIRCUMSTANTIAL EVIDENCE AS PER CASE LAW SUMATI DAYAL V. CIT 214 ITR 801(SC) AND CIT V. DURGA PRASAD MORE 82 ITR 540(SC) AND NOT ACTUAL EVIDENCE. THIS TRIBUNAL HAS HELD, IN NUTSHELL, THAT SUCH A COURSE OF ACTION OF TREATING ALL CATEGORIES OF GAINS OR LOSSES; AS THE CASE MAY BE, MUST BE BASED AS ACTUAL EVIDENCE ONLY. THE SAME REASONING APPLIES MUTATIS MUTANDIS IN ALL THESE CASES THEREFORE. M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 9 6. THE REVENUES EIGHTEEN MISCELLANEOUS APPLICATIONS FAIL THEREFORE. A COPY OF THIS INSTANT COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILE(S). I MAKE IT CLEAR BEFORE CONCLUDING THAT SINCE THE REVENUES INSTANT MISCELLANEOUS APPLICATIONS INVOLVE IDENTICAL GRIEVANCES, THE SAME ARE DISPOSED OFF BY WAY OF THE FOREGOING COMMON ADJUDICATION. 8. THESE REVENUES EIGHTEEN MISCELLANEOUS APPLICATIONS ARE DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 18.03.2020. SD/- (S. S. GODARA) JUDICIAL MEMBER /KOLKATA; / DATE: 18/03/2020 RS / COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT - (I) ITO, WARD-48(1), KOLKATA (II) ITO, WARD-45(2), KOLKATA (III) DCIT, CIRCLE-47, KOLKATA (IV) ITO, WD-43(4), KOLKATA (V) ITO, WARD-48(4), KOLKATA (VI) ITO, WD-43(3), KOLKATA (VII) ITO, WD-47(4), KOLKATA (VIII) ITO, WARD-45(1), KOLKATA (IX) ITO, WARD-47(3), KOLKATA (X) ITO, WD-2(3), PURBA BURDWAN 2. THE RESPONDENT- (I) PRADEEP KR. PANSARI (HUF) (II) SANJAY KUMAR AGARWAL (III) M/S JAYCHAND LAL CHOPRA [HUF] (IV) BABITA AGARWAL (V) SURENDRA SHARMA (VI) SMT. ANITA DIGGA (VII) KAILASH KUMAR MADHOGARIA (HUF) (VIII) JAYA MADHOGARIA M.A NO.04,07,05,16,17,08,15,06/KOL/2020 & M.A NO.298,300,299,304,303,295,302,301,296,297/KOL/2019 PRADEEP KR. PANSARI (HUF) & ORS. PAGE | 10 TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . (IX) VIVEK MADHOGARIA (X) SMT. SHILPI JAIN (XI) SHREE NIWAS LAHOTI, L/H OF MOHAN LAL LAHOTI (XII) SRI SUMIT JAIN (XIII) MAHESH LAHOTI (XIV) TAPATI SAHANA (XV) SUSHILA MADHOGARIA (XVI) SHRI VIVEK MADHOGARIA (XVII) SOUVIK SAHANA (XVIII) SURAJ SAHANA 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.