Income Tax Appellate Tribunal - Chennai
Manish Kumar, Chennai vs Ito Ncw 5(3), Chennai on 11 January, 2019
आयकर अपील य अ धकरण, 'ए' यायपीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL
'A' BENCH, CHENNAI
ी एन.आर.एस. गणेशन, या यक सद य एवं ी एस. जयरामन, लेखा सद य केसम$
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND
SHRI S. JAYARAMAN, ACCOUNTANT MEMBER
आयकर अपील सं./ITA Nos.2514 & 2515/Chny/2018
नधा&रण वष& /Assessment Years : 2010-11 & 2013-14
Smt. Santosh Bai, The Income Tax Officer,
44/39, E.K. Agraharam Street, v. Non Corporate Ward - 6(2),
Park Town, Chennai - 600 003. Chennai.
PAN : AASPS 4354 H
(अपीलाथ*/Appellant) (+,यथ*/Respondent)
आयकर अपील सं./ITA No.2516/Chny/2018
नधा&रण वष& /Assessment Year : 2010-11
M/s Mootha Kanjayalal Pramod The Income Tax Officer,
Kumar HUF, v. Non Corporate Ward - 5(3),
39, Kalathi Pillai Street, Chennai.
Sowcarpet, Chennai - 600 079.
PAN : AAEHM 5491 F
(अपीलाथ*/Appellant) (+,यथ*/Respondent)
आयकर अपील सं./ITA No.2517/Chny/2018
नधा&रण वष& /Assessment Year : 2010-11
M/s Rathan Chand Bothra (HUF), The Income Tax Officer,
13, Vikunta Vadiyar Street, v. Non Corporate Ward - 6(1),
Sowcarpet, Chennai - 600 079. Chennai.
PAN : AADHR 3728 M
(अपीलाथ*/Appellant) (+,यथ*/Respondent)
2 I.T.A. Nos.2514 to 2520/Chny/18
आयकर अपील सं./ITA No.2518/Chny/2018
नधा&रण वष& /Assessment Year : 2010-11
Shri K. Pramod Kumar Jain, The Income Tax Officer,
39, Mishri Krupa Kalathi Pillai v. Non Corporate Ward - 5(5),
Street, Chennai.
Sowcarpet, Chennai - 600 079.
PAN : AAIPP 2443 C
(अपीलाथ*/Appellant) (+,यथ*/Respondent)
आयकर अपील सं./ITA No.2519/Chny/2018
नधा&रण वष& /Assessment Year : 2012-13
Shri Mittal Manish Kumar, The Income Tax Officer,
No.52, NSC Bose Road, v. Non Corporate Ward - 5(3),
Sowcarpet, Chennai - 600 079. Chennai.
PAN : AKMPM 1528 R
(अपीलाथ*/Appellant) (+,यथ*/Respondent)
आयकर अपील सं./ITA No.2520/Chny/2018
नधा&रण वष& /Assessment Year : 2012-13
Shri Manish Kumar, The Income Tax Officer,
No.52, NSC Bose Road, v. Non Corporate Ward - 5(3),
Sowcarpet, Chennai - 600 079. Chennai.
PAN : AFNPM 3822 N
(अपीलाथ*/Appellant) (+,यथ*/Respondent)
अपीलाथ* क- ओर से / Appellants by : Shri R. Padmanabhan, CA
+,यथ* क- ओर से / Respondent by : Shri AR.V. Sreenivasan, JCIT
सन
ु वाई क- तार ख / Date of Hearing : 03.01.2019
घोषणा क- तार ख / Date of Pronouncement : 11.01.2019
3 I.T.A. Nos.2514 to 2520/Chny/18
आदे श /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
The appeals filed by the independent assessees are directed against the respective orders of the Commissioner of Income Tax (Appeals) -5, Chennai. Since common issue arises for consideration in all these appeals, we heard these appeals together and disposing of the same by this common order.
2. The assessees claim for exemption under Section 10(38) of the Income-tax Act, 1961 (in short 'the Act'), which was not allowed by the Assessing Officer after referring to the Investigation Report said to be received from Investigation Wing of the Department at Kolkata.
3. We heard Shri R. Padmanabhan, the Ld. representative for the assessees and Shri AR.V. Sreenivasan, the Ld. Departmental Representative. Admittedly, the Investigation Report said to be received by the Assessing Officer from Kolkata was not furnished to the assessees. Moreover, the statement said to be recorded from Shri Ashok Kumar Kayan at Kolkata was also not furnished to the assessees. The Revenue claims that the assessees have invested 4 I.T.A. Nos.2514 to 2520/Chny/18 in Penny stock companies. It is not known how the Revenue claims that the assessees invested in Penny stock companies? How the Penny stock companies are allowed to issue public shares so as to invite the general public for investment? It is also not known how this kind of companies are allowed to be listed in stock exchange? Therefore, an investigation has to be made by the Assessing Officer. The Assessing Officer shall furnish a copy of Investigation Report said to be received from the Investigation Wing of the Department at Kolkata and a copy of statement recorded from Shri Ashok Kumar Kayan at Kolkata to the assessees. Accordingly, the orders of both authorities below are set aside and the Assessing Officer is directed to furnish copies of the Investigation Report received from the Department at Kolkata and the statements recorded at Kolkata and at Chennai and also to make a thorough investigation how the Penny stock companies are allowed to issue public shares and bring on record the action taken against the officers who are responsible for allowing such Penny stock companies to issue public shares. The Assessing Officer shall also examine whether these companies are listed in stock exchange. If so, what are the actions taken for delisting such companies from 5 I.T.A. Nos.2514 to 2520/Chny/18 stock exchange. The Assessing Officer shall examine all these aspects and bring on record all material facts and thereafter decide the issue afresh in accordance with law, after giving a reasonable opportunity to the assessees.
4. In the result, all the appeals filed by the assessees are allowed for statistical purposes.
Order pronounced in the court on 11th January, 2019 at Chennai.
sd/- sd/-
(एस. जयरामन) (एन.आर.एस. गणेशन)
(S. Jayaraman) (N.R.S. Ganesan)
लेखा सद य/Accountant Member या यक सद य/Judicial Member
चे नई/Chennai,
4दनांक/Dated, the 11th January, 2019.
Kri.
आदे श क- + त5ल6प अ7े6षत/Copy to:
1. अपीलाथ*/Appellant 2. +,यथ*/Respondent
3. आयकर आयु8त (अपील)/CIT(A)-5, Chennai-34
4. Principal CIT- 9, Chennai 5. 6वभागीय + त न ध/DR 6. गाड& फाईल/GF.