RAVINDRA KUMAR AGARWAL HUF,KOLKATA vs. ITO,WARD-46(3),KOLKATA, KOLKATA

आयकर अपील�य अ�धकरण, कोलकाता पीठ ‘एसएमसी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA �ी संजय गग�, �या�यक सद�य एवं �ी मनीष बोरड, लेखा सद�य के सम� Before Shri Sanjay Garg, Judicial Member and Dr. Manish Borad, Accountant Member I.T.A No.810/Kol/2023 Assessment year: 2001-02 Ravindra Kumar Agarwal HUF...................................................……Appellant 9/12, Block A, First Floor, Opp: Nacamichi Finance, Lal Bazar, Mercantile Building, Kolkata-1. [PAN: AAGHR8925R] vs. ITO, Ward-46(3), Kolkata..............................……........……...…..…..Respondent Appearances by: Shri Miraj D. Shah, AR, appeared on behalf of the appellant. Shri Subhro Das, Addl. CIT- DR, appeared on behalf of the Respondent. Date of concluding the hearing : September 26, 2023 Date of pronouncing the order : December 14, 2023 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 06.06.2023 of the National Faceless Appeal Centre (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The assessee in this appeal, apart from challenging the validity of the reopening of the assessment u/s 147 of the Act, has also taken the legal ground relating to the jurisdiction of the Assessing Officer i.e. ITO, Ward-4(6(3), Kolkata. Apart from that the assessee has contested the addition made by the Assessing Officer of Rs.47,34,280/- treating the said amount as undisclosed income of the assessee.

I.T.A No.810/Kol/2023 Assessment year: 2001-02 Ravindra Kumar Agarwal HUF 3. Though the ld. counsel for the assessee has stressed that earlier the notice u/s 148 of the Act was issued by ITO, Ward-4(3), Agra on 20.03.2008, however, the assessee objected to the said jurisdiction of the ITO, Ward-4(3), Agra. Thereafter, the case was transferred to ITO, Ward- 46(3), Kolkata, however, the said officer did not issue notice to the assessee u/s 148 of the Act. 4. We find that instead of going through this legal issue, the assessee has fair case on merits also. A perusal of the assessment order reveals that the Assessing Officer has made the following one para observation for making the impugned additions:

“Perusal of records and the documents investoried/impounded reveals that the assessee Rabindra Kumar Agarwal(HUF) had accommodation entries to the extent of Rs.47,34,280/- as a beneficiary of the company M/s Ayushi Stock Broker Pvt. Ltd. situated at 384, B/1st Floor, Friends Tower, Agra which have not been disclosed by the assessee in the return of inocme relevant to F.Y 2000-01 and the same is treated as assessee’s undisclosed income for the year under consideration.” A perusal of the above observation would reveal that the Assessing Officer has not gone into the nature of the transactions to hold that the transactions by the assessee with the alleged M/s Ayushi Stock Broker Pvt. Ltd. was bogus or that the assessee has introduced his undisclosed income by way of aforesaid transaction. Even before the CIT(A), the assessee has categorically submitted that the assessee had sold shares to M/s Ayushi Stock Broker Pvt. Ltd. for a sum of Rs.47,54,280.25 and the assessee has offered short term capital gain of Rs.1,07,755/- on the said transaction in his return of income filed for the year. However, neither the Assessing Officer nor the ld. CIT(A) has discussed about the said transaction even no basis has been given to hold that the said transaction was bogus. There is no discussion as to how the lower authorities arrived at the conclusion that through the said transaction,

I.T.A No.810/Kol/2023 Assessment year: 2001-02 Ravindra Kumar Agarwal HUF the assessee had introduced his undisclosed income. Therefore, the orders of both the lower authorities being non-speaking orders and are devoid of merits and the same are set aside. The impugned addition of Rs.47,34,280/- is ordered to be deleted. 5. In the result, the appeal of the assessee stands allowed. Kolkata, the 14th December, 2023. Sd/- Sd/- [डॉ�टर मनीष बोरड /Dr. Manish Borad] [संजय गग� /Sanjay Garg] लेखा सद�य /Accountant Member �या�यक सद�य /Judicial Member

Dated: 14.12.2023. RS Copy of the order forwarded to: 1 Ravindra Kumar Agarwal HUF 2. ITO, Ward-46(3), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches