RAJRATH MERCHANTS PVT LTD,KANKURGACHI V. DY COMMISSIONER OF INCOME TAX CIRCLE-1, HAZARIBAGH, HAZARIBAGH

ITA 192/RAN/2023

AI Insights

The case involves Rajrath Merchants Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre/Commissioner of Income Tax (Appeals) regarding the assessment year 2014-15. The primary contention was related to the treatment of income from share transactions, which the Assessing Officer had classified as undisclosed income based on investigations and statements from other individuals. The CIT(A) dismissed the appeal as infructuous because the assessee had already filed a revisionary petition under Section 264, which was also dismissed. The Tribunal's decision affirmed the CIT(A)'s dismissal, leading to the current appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470582 (ITAT-RANCHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside; Revision of order
• Section: 143(3); 264

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER I.T.A. No. 192/Ran/2023 (Assessment Year-2014-15) Rajrath Merchants Pvt. Ltd., Ground Floor, P-5, VIP Road Scheme, VII-M, Kakurgachi, West Bengal-700054. PAN No. AABCR 6124 N Vs. D.C.I.T., Circle-1, Hazaribagh. Appellant/ Assessee Respondent/ Revenue Assessee represented by None Department represented by Shri Shadab Ahmed, CIT-DR Date of hearing 10/01/2025 Date of pronouncement 20/02/2025 O R D E R PER: RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER: 1. This appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi (NFAC)/learned Commissioner of Income Tax (Appeals), [in short, the ld. CIT(A)] dated 08/08/2023 for the Assessment Year (AY) 2014-15 as per the grounds of appeal on record. 2. At the time of hearing, none has appeared on behalf of assessee, though, the notices of hearing have been duly served on the given address. 3. Submissions of the ld. CIT-DR for the revenue were duly considered and the documents produced have been perused while taking the matter as heard. 4. Brief facts of the case are that the assessee filed its return of income on 19/09/2014 declaring total income of ₹ 1,41,240/-. The main business of ITA No. 192/Ran/2023 Rajrath Merchants P Ltd. Vs DCIT 2 assessee company is granting loans, trading and investment in shares and securities. The Assessing Officer issued notice in the course of scrutiny proceedings to which the assessee made necessary compliances. During the assessment year under consideration, the assessee purchased some shares and also sold the shares. However, the Assessing Officer simply relying on the enquiries conducted by the Investigation Wing of Kolkata and statement of some of persons, e.g., Jay Kishan Poddar, Director of Consortium Capital Pvt. Ltd. was recorded on oath during the survey proceedings under Section 133A of the Income Tax Act, 1961 (in short, the Act) conducted in their office premises on 11/09/2015, who accepted that the purchase and sales of shares are not genuine. The Assessing Officer then computed total income by taking gross interest income of ₹ 4,06,55,584/- and further treated the gross receipt on sales of shares of ₹ 1,57,19,382/- as undisclosed income. 5. Being aggrieved by the order of Assessing Officer, the assessee filed appeal before the ld. CIT(A). In the mean time, the assessee also filed a petition under Section 264 of the Act before the ld. PCIT to set aside the assessment made by the Assessing Officer. 6. The ld. CIT(A) vide impugned order, dismissed the appeal of assessee as infructuous on the ground that the assessee has preferred revisionary petition under Section 264 of the Act before the ld. PCIT and thus, the appeal filed before the ld. CIT(A) becomes defunct and non-maintainable and accordingly, infructuous. ITA No. 192/Ran/2023 Rajrath Merchants P Ltd. Vs DCIT 3 7. Aggrieved by the order of ld. CIT(A), this instant appeal has been preferred before the Tribunal. During the appellate proceedings, the assessee, though, not appeared in person, a written submission was filed as under: \"It is evident that Ld. CIT(A) has assumed that the Ld. PCIT Hazaribagh vide his order u/s 264 dated 16/03/2017 has set aside the assessment order u/s 143(3) for fresh consideration which order was under the present appeal. However, it is submitted that this is not the correct fact and it appears that there has been some misunderstanding. The Ld. PCIT Hazaribagh passed his order u/s 264 on 20/02/2018 dismissing the petition u/s 264 on the ground that the assessee has already filed appeal and hence 264 petition was not maintainable. The copy of the order u/s 264 is enclosed herewith for your kind perusal. Hence, the appeal should have been decided on merits by Ld. CIT(A). Hence, the first appeal before CIT(A) being dismissed as infructuous on wrong facts is clearly a mistake apparent from record. Therefore, it is requested to your honour to kindly set aside the order passed by Ld. CIT(A) and direct him to decide the case afresh after considering the submissions filed before him in accordance with law.\" 8. The appellant has also placed reliance on the decisions of the various High Courts in support of its claim in order to justify that the assessee had genuine transactions in shares and securities. On the other hand, the ld. CIT-DR for the revenue defended the order of ld. CIT(A). 9. We have considered the rival submissions and it is found that the ld. CIT(A) has correctly treated the appeal as non-maintainable and infructuous in view of the fact that the assessee had filed petition under Section 264 of the Act before the ld. PCIT, who passed the order under Section 264 of the Act on ITA No. 192/Ran/2023 Rajrath Merchants P Ltd. Vs DCIT 4 20/02/2018. Thus, the appeal become infructuous. We do not find any infirmity in the order of ld. CIT(A) and hence the same is confirmed. 10. In the result, this appeal of assessee is dismissed. Order announced in open court on 20th February, 2025. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (RATNESH NANDAN SAHAY) JUDICIAL MEMBER ACCOUNTANT MEMBER Ranchi, Dated: 20/02/2025 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT 4. DR By order 5. Guard File Sr. Private Secretary, ITAT, Ranchi "