VIKRAM KASERA,KOLKATA V. DCIT, CIRCLE 61, KOLKATA

ITA 268/KOL/2025

AI Insights

The case involves Vikram Kasera, an individual who earns income from salary and transactions in derivatives, who appealed against the order of the CIT(Appeals) at the National Faceless Appeal Centre, Delhi. The appeal was related to the assessment year 2017-2018, where the assessee's returns were marked as invalid, and he was later found to be a beneficiary of bogus long-term capital gains (LTCG) amounting to Rs.85,87,005. The Assessing Officer completed the assessment under section 144 of the Income Tax Act, 1961, due to non-response from the assessee. The CIT(Appeals) dismissed the appeal ex-parte due to non-submission of evidence and non-representation by the assessee. The ITAT, after hearing the Departmental Representative and perusing the records, decided to remit the matter back to the CIT(Appeals) to ensure the principles of natural justice are met.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669262 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Salary income; Principle of natural justice; Loose papers; Transactions in derivatives; Bogus
• Section: 148; 144; 132; 68

Judgement Text

" ITA No. 268/KOL/2025 (A.Y. 2017-2018) Vikram Kasera 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rakesh Mishra, Accountant Member I.T.A. No. 268/KOL/2025 Assessment Year: 2017-2018 Vikram Kasera,………………………………..……Appellant 7B, Deodar Street, Kolkata-700019 [PAN:AFTPK7200E] -Vs.- Deputy Commissioner of Income Tax,……..Respondent Circle-61, Kolkata, 169, A.J.C. Bose Road, Bamboo Villa, Kolkata-700014 Appearances by: N o n e, appeared on behalf of the assessee Shri S.B. Chakraborthy, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: June 17, 2025 Date of pronouncing the order: June 24, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 11th December, 2024. 2. Brief facts of the cases are that the assessee is an individual, who derives income from salary from Shristi Hotel Pvt. Limited and ITA No. 268/KOL/2025 (A.Y. 2017-2018) Vikram Kasera 2 also earned from transactions in derivatives entered through recognized Stock Exchange shown under the head ‘Profits and Gains from Business and Profession”. The assessee filed his return of income electronically for the assessment year 2017-18 on 26.03.2018 and revised it on 03.06.2018. Both returns were marked as invalid as there is no valid ITR for the AY 2017-18. The case was selected to verify bogus long-term capital gain. Notice under section 148 for AY 2017-18 was issued on 12.04.2021 on the basis of information received from investigation Wing, DDIT(Inv.), Unit-1(1), Ahmedabad. Incriminating data in the form of digital data, loose papers, diaries etc. were found and seized during action under section 132 of the Act. During the course of search action, data back-up of various devices i.e. computer, pen- drive, server, mobile phones etc. were seized/impounded. It was found that the assessee is one of the beneficiaries of bogus LTCG and received bogus LTCG through Kushal Group to the tune of Rs.85,87,005/-. After initiating assessment proceedings under section 147, the assessee was provided sufficient opportunities to prove/explain the genuineness of transactions relating to LTCG. The assessee did not respond to the notice issued under section 148. Therefore, ld. Assessing Officer completed the assessment under section 144 of the Act assessing the amount of Rs.85,87,005/- as unexplained u/s 68 of the Act. Finally, ld. Assessing Officer determined the total income of the assessee at Rs.98,35,095/- including the income as per return of income filed amounting to Rs.12,48,090/-. ITA No. 268/KOL/2025 (A.Y. 2017-2018) Vikram Kasera 3 3. On being aggrieved, the assessee preferred appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate his claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal ex-parte on 11th December, 2024. 4. On being aggrieved, the assessee preferred an appeal before the ITAT. 5. None appeared on behalf of the asseessee at the time of hearing. Therefore, we have decided to dispose of the appeal after hearing the ld. Departmental Representative and perusing the appeal available on record. 6. At the outset, ld. D.R. brought to our notice that the assessee did not produce the relevant documents as asked by the ld. CIT(Appeals) during the appellate proceedings. The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted that before the ITAT, the assessee did not substantiate his claim. Therefore, he pleaded to uphold the order passed by the revenue authorities. 7. We have heard the Ld. Departmental Representative and perused the material available on record. Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of ITA No. 268/KOL/2025 (A.Y. 2017-2018) Vikram Kasera 4 natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate orders in accordance with law and merits of the cases, based on the materials available on the record. Thus, the grounds raised by the assessee in the appeal are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24/06/2025. Sd/- Sd/- (Rakesh Mishra) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 24th day of June, 2025 Copies to :(1) Vikram Kasera, 7B, Deodar Street, Kolkata-700019 (2) Deputy Commissioner of Income Tax, Circle-61, Kolkata, 169, A.J.C. Bose Road, Bamboo Villa, Kolkata-700014 (3) CIT(Appeals), NFAC, Delhi (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "