ITO, Ward - 35(3), Kolkata V. Kanak Kumar Maloo, Kolkata

MA 32/KOL/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2288 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 7 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: 10-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: ARVIND AGARWAL M A NO KOL IN
• Keywords: Unexplained cash credit; 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.40/KOL/2020 (IN I.T.A NO.2260/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WARD-50(3), KOLKATA VS. ADITYA SARAF (HUF) CF-265, SALT LAKE CITY, SECTOR-I, KOLKATA-700091 ./ ./PAN/GIR NO.: AAFHA 2618 K (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI ARVIND AGARWAL, ADVOCATE M.A NO.42/KOL/2020 (IN I.T.A NO.2107/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-46(4), KOLKATA VS. SMT. BABITA DUGAR BUNGALOW NO.58 VIKRAM VIHAR 493B, G.T. ROAD (SOUTH), HOWRAH-711102 ./ ./PAN/GIR NO.: ADMPD 5578 R (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI SUNIL SURANA, FCA M.A NO.43/KOL/2020 (IN I.T.A NO.2289/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-46(4), KOLKATA VS. SHRUTI DHOOT 10E, RABINDRA SARANI, 29B, 3 RD FLOOR, R.NO.10E, KOLKATA-700 073 ./ ./PAN/GIR NO.: BDKPD 7473 C (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT M.A NO.40,42,43,44,29,30,32,33,34,35,18,19,20,21,22,23,25,28/KOL/2020 ADITYA SARAF (HUF) & ORS PAGE | 2 RESPONDENT BY : SHRI RAM AVATAR DHOOT, FCA M.A NO.44/KOL/2020 (IN I.T.A NO.1376/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-46(4), KOLKATA VS. SIMA DARUKA 8, PEARY MOHAN MUKHERJEE STREETE, BELURMATH, HOWRAH711202 ./ ./PAN/GIR NO.: APLPD 6688 M (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI AMIT AGARWAL, ADVOCATE M.A NO.29/KOL/2020 (IN I.T.A NO.1375/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-48(4), KOLKATA VS. SHANKAR LAL DARUKA (HUF) 8, PEARY MOHAN MUKHERJEE STREET, BELURMATH HOWRAH711202 ./ ./PAN/GIR NO.: AASHS 8397 G (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI AMIT AGARWAL, ADVOCATE M.A NO.30/KOL/2020 (IN I.T.A NO.1774/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WARD-48(4), KOLKATA VS. SHANKAR LAL DARUKA (HUF) 8, PEARY MOHAN MUKHERJEE STREET, BELURMATH, HOWRAH711 202 ./ ./PAN/GIR NO.: AASHS 8397 G (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT M.A NO.40,42,43,44,29,30,32,33,34,35,18,19,20,21,22,23,25,28/KOL/2020 ADITYA SARAF (HUF) & ORS PAGE | 3 RESPONDENT BY : SHRI AMIT AGARWAL, ADVOCATE M.A NO.32/KOL/2020 (IN I.T.A NO.2196/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-35(3), KOLKATA VS. KANAK KUMAR MALOO 133, CANNING STREET, KOL-1. ./ ./PAN/GIR NO.: ADRPM0627R (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI B. K. SINGH, ADVOCATE M.A NO.33/KOL/2020 (IN I.T.A NO.2559/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-35(3), KOLKATA VS. M/S LAKSHMINARAYAN MAHENDRA KUMAR (HUF) 12A, N.S. ROAD, 1ST FLOOR, ROOM NO.19, KOLKATA ./ ./PAN/GIR NO.: AAAHL 4584 L (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : MS. VIJETA UTWALIA AGARWAL, ADVOCATE M.A NO.34/KOL/2020 (IN I.T.A NO.406/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-35(3), KOLKATA VS. NARESH CHAND CHANDAK L/H KUSUM CHANDAK 8 TH FLOOR, 9, INDIA EXCHANGE PLACE, KOLKATA-700001 ./ ./PAN/GIR NO.: ACOPC 4288 N (APPELLANT) .. (RESPONDENT) M.A NO.40,42,43,44,29,30,32,33,34,35,18,19,20,21,22,23,25,28/KOL/2020 ADITYA SARAF (HUF) & ORS PAGE | 4 APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : NONE M.A NO.35/KOL/2020 (IN I.T.A NO.379/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-35(2), KOLKATA VS. M/S JIVENDRA MISHRA, HUF 85, NETAJI SUBHASH ROAD, ROOM NO.311, 3R D FLOOR, KOLKATA-700001 ./ ./PAN/GIR NO.: AABHJ 8836 J (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : NONE M.A NO.18/KOL/2020 (IN I.T.A NO.1653/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-47(4), KOLKATA VS. MANISHA MADHOGARIA C/O S.L.KOCHAR, ADVOCATE, 5, ASHUTOSH CHOWDHURY AVENUE, KOLKATA-700019 ./ ./PAN/GIR NO.: AFNPM 4613 D (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : NONE M.A NO.19/KOL/2020 (IN I.T.A NO.2226/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-46(1), KOLKATA VS. KAUSHAL AGARWAL IDEAL GRAND, BLOCK-A, FLAT NO.7F, 456, G.T. ROAD(SOUTH), HOWRAH-711102 ./ ./PAN/GIR NO.: AIPPA6624H (APPELLANT) .. (RESPONDENT) M.A NO.40,42,43,44,29,30,32,33,34,35,18,19,20,21,22,23,25,28/KOL/2020 ADITYA SARAF (HUF) & ORS PAGE | 5 APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : NONE M.A NO.20/KOL/2020 (IN I.T.A NO.1814/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-46(1), KOLKATA VS. SRI RAJESH AGARWAL 3/1, AHMED MAMUJI STREET, G.T. ROAD(NORTH), HOWRAH-711204. ./ ./PAN/GIR NO.: ACWPA0587G (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI B. K. SINGH, ADVOCATE M.A NO.21/KOL/2020 (IN I.T.A NO.1808/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-46(1), KOLKATA VS. PREMLATA AGARWAL C/O SUBASH AGARWAL & ASSOCIATES, SIDDHA GIBSON, 1, GIBSON LANE, SUITE- 213, 2 ND FLOOR, KOLKATA-69 ./ ./PAN/GIR NO.: AERPA 7886 F (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI B. K. SINGH, ADVOCATE M.A NO.22/KOL/2020 (IN I.T.A NO.2299/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-47(2), KOLKATA VS. SMT. NITA JHUNJHUNWALA 203, BLOCK NO.C/3 2ND FLOOR FLOWR VALLEY 493, G.T. ROAD (SOUTH) SHIBPUR HOWRAH-711102 ./ ./PAN/GIR NO.: ACVPJ 5308 D M.A NO.40,42,43,44,29,30,32,33,34,35,18,19,20,21,22,23,25,28/KOL/2020 ADITYA SARAF (HUF) & ORS PAGE | 6 (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI ASHOK BARNWAL, CA M.A NO.23/KOL/2020 (IN I.T.A NO.2296/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-47(2), KOLKATA VS. SMT. NEELAM JHUNJHUNWALA 203, 204 BLOCK NO.C/3, 2ND FLOOR FLOWER VALLEY, 493, G.T. ROAD (SOUTH) SHIBPUR HOWRAH-711102 ./ ./PAN/GIR NO.: ADQPB 1787 J (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI ASHOK BARNWAL, CA M.A NO.25/KOL/2020 (IN I.T.A NO.162/KOL/2019) ( [ [ / ASSESSMENT YEAR: 2014-15) ITO, WARD-45(2), KOLKATA VS. SRI SOUMITRA JOSHI 11, GOENKA LANE, KOLKATA 700007. ./ ./PAN/GIR NO.: ACRPJ 6112 B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI ANUJ MUSADDI, CA M.A NO.28/KOL/2020 (IN I.T.A NO.1858/KOL/2018) ( [ [ / ASSESSMENT YEAR: 2015-16) ITO, WARD-48(4), KOLKATA VS. SMT. UMA JARIA H. NO. 2482, SRI SRI KUTIR, SECTOR-79, MOHALI-160055 ./ ./PAN/GIR NO.: AIIPM 1424 G M.A NO.40,42,43,44,29,30,32,33,34,35,18,19,20,21,22,23,25,28/KOL/2020 ADITYA SARAF (HUF) & ORS PAGE | 7 (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUPRIYO PAL, JCIT RESPONDENT BY : SHRI SUNIL SURANA, FCA / DATE OF HEARING : 13/03/2020 /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 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 M.A NO.40,42,43,44,29,30,32,33,34,35,18,19,20,21,22,23,25,28/KOL/2020 ADITYA SARAF (HUF) & ORS PAGE | 8 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. 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 M.A NO.40,42,43,44,29,30,32,33,34,35,18,19,20,21,22,23,25,28/KOL/2020 ADITYA SARAF (HUF) & ORS PAGE | 9 / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT - (I) ITO, WARD-50(3), KOLKATA (II) ITO, WARD-46(4), KOLKATA (III) ITO, WARD-48(4), KOLKATA (IV) ITO, WARD-35(2), KOLKATA (V) ITO, WARD-47(4), KOLKATA (VI) ITO, WARD-46(1), KOLKATA (VII) ITO, WARD-47(2), KOLKATA (VIII) ITO, WARD-45(2), KOLKATA 2. THE RESPONDENT- (I) ADITYA SARAF (HUF) (II) SMT. BABITA DUGAR (III) SHRUTI DHOOT (IV) SIMA DARUKA (V) SHANKAR LAL DARUKA (HUF) (VI) KANAK KUMAR MALOO (VII) M/S LAKSHMINARAYAN MAHENDRA KUMAR (HUF) (VIII) NARESH CHAND CHANDAK L/H KUSUM CHANDAK (IX) M/S JIVENDRA MISHRA, HUF (X) MANISHA MADHOGARIA (XI) KAUSHAL AGARWAL (XII) SRI RAJESH AGARWAL (XIII) PREMLATA AGARWAL (XIV) SMT. NITA JHUNJHUNWALA (XV) SMT. NEELAM JHUNJHUNWALA (XVI) SRI SOUMITRA JOSHI (XVII) SMT. UMA JARIA 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.