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Facts
The assessee appealed against a final assessment order that included additions for trading in penny series shares, expenditure on penny scrips, and invoking Section 115BBE of the Income Tax Act. The assessee had provided supporting documents for these transactions.
Held
The tribunal found that two of the three appeals filed by the assessee were duplicate. Therefore, the tribunal dismissed the two duplicate appeals (ITA No.524/Mum/2025 and ITA No.626/Mum/2025).
Key Issues
Whether the appeals filed are duplicate and can be dismissed on that ground. The grounds raised by the assessee regarding additions made by the AO under various sections.
Sections Cited
143(3), 147, 144C(13), 144C(5), 68, 69C, 115BBE, 234B, 234C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “I” BENCH, MUMBAI
(Assessment Year: 2017-2018) & (Assessment Year: 2018-2019) Manavi Goel Sharma F-24, Hyderabad Estate, N. S. Road, Grant Road West, Mumbai – 400 036. Maharashtra. [PAN:AKEPG7741E] .…………. Appellant Vs Income Tax Officer Ward 2(3)(1), Mumbai Kautilya Bhawan, Bandra Kurla Complex, …………. Respondent Mumbai - 400051. Maharashtra. Appearance For the Appellant/Assessee : None For the Respondent/Department : Shri Krishna Kumar Date Conclusion of hearing : 14.05.2025 Pronouncement of order : 14.05.2025 O R D E R [ Per Rahul Chaudhary, Judicial Member: 1. These are two appeals preferred by the same Assessee whereby the Final Assessment Order, dated 26/12/2024, passed by the Assessing Officer under Section 143(3) read with Section 147 read with Section 144C(13) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], as per the directions issued by Commissioner of Income Tax (Dispute Resolution Panel 3), Mumbai-3 [for short ‘DRP’] on 26/11/2024 under Section 144C(5) of the Act for the Assessment Year 2017-2018 and 2018-2019 has been challenged.
&626/Mum/2024 Assessment Year 2017-2018 & 2018-2019
When the appeal was taken up for hearing none was present on behalf of the Assessee. The Learned Departmental Representative appearing before us submitted that out of three appeals [ and ITA 374/Mum/2025] preferred by the same Assessee listed for hearing today, two the appeals [ Assessee has impugned the same Assessment Order dated 26/12/2024 passed by the Assessing Officer pursuant to the directions given by the DRP vide order, dated 26/11/2024, for the Assessment Year 2018-2019.
On perusal of the appeals (e-filled), we find that in all the three appeals the Assessee has raised identical grounds which read as under: “1) Addition u/s 68 on account of trading in penny series - Addition of Rs. 25,95,819/-: The Ld. Assessing Officer has erred in adding back the Income of Rs. 25,95,819/- on the basis of third-party information. The Assesses has already disclosed Rs. 12,15,740/- as Short-Term Capital Gain from the sales consideration of Rs. 38,11,558/- from sale of shares of M/s. Innovative Tech Pack Ltd. in her Income Tax Return for the A.Y,2018-19. The Assessee had provided all the evidences such as Trade Register along with a summary of sale and purchase of the scrips. However, the Assessee added back the same in Income from Other Sources u/s 68 without considering the supporting documents provided by the Assessee. 2) Addition u/s 69C on account of expenditure of penny scrips Addition of Rs. 1,14,348/- The Ld. Assessing Officer has erred in adding back to the Income of Rs. 1,14,348/- on account of 3% expenditure on the sale of 39,451 shares of Rs. 38,11,558.80/-, The Assessee has not incurred any expenditure on such sale. 3) Invoking provision u/s 115BBE of the Income Tax Act, 1961; The Ld. Assessing Officer has erred by charging Rs.27,10,170/- as income taxable at special rate under section 115BBE of the Income Tax Act, 1961. There is no sufficient and appropriate evidence to prove that such amount was unexplained by the Assessee since all the supporting such &626/Mum/2024 Assessment Year 2017-2018 & 2018-2019 as trade register, details of purchase and sale of shares along with summary were already provided to the Assessing Officer. 4) Levy of Penal Interest u/s. 234B and 234C: The Appellant, on merits, denies its liability to penal interest.”
In all the three appeals the Assessee has impugned the Final Assessment Order, dated 26/12/2024, passed by the Assessing Officer for the Assessment Year 2018-2019. All the documents filed along with the appeal memorandum are common in all the three appeals. Therefore, accepting the submissions of the Learned Departmental Representative, we dismissed as being duplicate appeals filed by the Assessee for the Assessment Year 2018-2019. ITA 374/Mum/2025 is treated as original appeal filed for the Assessment Year 2018- 2019 which stands adjourned to 02/07/2025 vide separate order dated, 14/05/2025, passed in that appeal.
Order pronounced in open court.