Income Tax Appellate Tribunal - Chennai
Bherulal And Sons (Huf), Chennai vs Ito, Chennai on 19 December, 2017
आयकर अपील य अ धकरण, 'बी'' यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL 'B'(SMC) BENCH : CHENNAI ी अ ाहम पी. जॉज , लेखा सद य के सम! ।
[BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER] आयकर अपील सं./I.T.A. No.86/Mds/2017 नधा रण वष /Assessment year : 2009-2010 Shri. Bherulal and Sons (HUF) Vs. The Income Tax Officer, No.4, Thambu Naicken Street, Non Corporate Ward 4(5) Sowcarpet, Chennai 600 006.
Chennai 600 079.
[PAN AAFHB 0911E] (अपीलाथ$/Appellant) (%&यथ$/Respondent) अपीलाथ क ओर से/ Appellant by : Shri. S. Sridhar, Advocate यथ क ओर से /Respondent by : Shri. B. Sagadevan, IRS, JCIT.
सन
ु वाई क तार ख/Date of Hearing : 12-12-2017
घोषणा क तार ख /Date of : 19-12-2017
Pronouncement
आदे श / O R D E R
Assessee in this appeal filed against an order dated
15.12.2016 of ld. Commissioner of Income Tax (Appeals)-5, Chennai, it is aggrieved that ld.CIT(A) sustained reopening done for the impugned assessment year and also sustained the disallowance of claim of exemption made by the assessee u/s.10(38) of the Income :- 2 -: ITA No. 86/Mds/2017 Tax Act, 1961 (in short ''the Act'') on the long term capital gains arising to it on transfer of shares.
2. Ld. Counsel for the assessee submitted that the re- assessment done on the assessee for the impugned assessment year was based on a statement recorded by the Revenue from one Shri. Mukesh Choksi of M/s. Mahasagar group. As per the ld. Authorised Representative based on the said statement, ld. Assessing Officer had believed that accommodation entries were given to the assessee though which assessee had claimed purchase of shares for Rs.5,05,490/- and sale thereafter for Rs.76,240/-. As per the ld. Authorised Representative, lower authorities had disbelieved long term capital gains of Rs.9,51,624/- claimed as exempt by the assessee based on the statement of Shri. Mukesh Choksi. As per the ld. Authorised Representative, statement of Shri. Mukesh Choksi on which reliance was placed by the lower authorities was never put to the assessee. Thus, according to him, there was violation of rules of natural justice.
3. Per contra, ld. Departmental Representative submitted that it was not clear from the records whether statement of Shri. Mukesh Choksi was put to the assessee or not.
:- 3 -: ITA No. 86/Mds/2017
4. I have perused the orders and heard the rival contentions. Assessee had claimed long term capital gains of Rs.9,51,624/- as exempt u/s.10(38) of the Act. This was disbelieved by the ld. Assessing Officer and added as unexplained income based on information received from DIT(I & CI), New Delhi. As per the assessment order, such information indicated that one Shri. Mukesh Choksi of M/s. Mahasagar group had facilitated issue of bills/ entries to the assessee as if assessee had purchased shares worth Rs.5,05,490/- and sold it for Rs.76,240/-. Thus, claim of the assessee was disbelieved based on the information received from DIT (I &CI), New Delhi. It is not clear from the assessment order or the order of the ld. Commissioner of Income Tax (Appeals) whether such information was put to the assessee. However, ld. Commissioner of Income Tax (Appeals) has noted that there was a statement recorded from Shri. Mukesh Choksi. In my opinion, rules of natural justice require that the statements relied on by the Revenue for fastening a tax liability on the assessee has to be put to the assessee and explanation sought thereof. In the facts and circumstances of the case, I am of the opinion that the matter requires a fresh look by the ld. Assessing Officer. Ld. Assessing Officer has to give copies of the statement relied on by him, to the assessee, for getting his :- 4 -: ITA No. 86/Mds/2017 explanation and thereafter he shall proceed in accordance with law.
5. In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced on Thursday, the 19th day of December, 2017, at Chennai Sd/-
(अ ाहम पी. जॉज ) (ABRAHAM P. GEORGE) लेखा सद य/ACCOUNTANT MEMBER चे#नई/Chennai $दनांक/Dated: 19th December, 2017 KV आदे श क त'ल(प अ)े(षत/Copy to:
1. अपीलाथ /Appellant 3. आयकर आयु*त (अपील)/CIT(A) 5. (वभागीय त न/ध/DR
2. यथ /Respondent 4. आयकर आयु*त/CIT 6. गाड फाईल/GF