ACIT-2(1)(1), MUMBAI vs. GSB SHARE CUSTODIAN SERVICES LTD., MUMBAI

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ITA 4033/MUM/2024Status: DisposedITAT Mumbai05 March 2025AY 2011-12Bench: SHRI SAKTIJIT DEY (Vice President), SHRI NARENDRA KUMAR BILLAIYA (Accountant Member)1 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The tribunal noted the assessee's application and compliance with the Vivad se Vishwas Scheme and ordered the withdrawal of the appeal.

What were the facts?

The revenue appealed against the deletion of disallowance of loss on sale of 'penny stock scrip'. The assessee had applied for resolution of dispute under the Vivad se Vishwas Scheme, 2024 and paid the specified amount.

What were the issues?

Whether the appeal is to be dismissed due to the assessee opting for the Vivad se Vishwas Scheme, leading to withdrawal of the appeal by the revenue.

Which sections of the Income-tax Act were involved?

Section 148,Section 250,Section 92

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘G’ BENCH

Before: SHRI SAKTIJIT DEY & SHRI NARENDRA KUMAR BILLAIYA

For Respondent: Shri. Bhangepatil Pushkaraj
Hearing: 05/03/2024Pronounced: 05/03/2025

आदेश / O R D E R

PER NARENDRA KUMAR BILLAIYA (A.M): This appeal by the revenue is preferred against the order of NFAC Delhi dated 05.06.2024 pertaining to A.Y. 2011-12. 2. The grievance of the revenue reads as under:-

1.

“The Ld. CIT(A) erred in deleting the disallowance of loss on sale of the shares of 'penny stock scrip'. M/s G S Auto International Ltd. Rs.16.690/- from the loss under the head speculation loss of Rs.12,98,365/- ignoring the fact of rigging in the price of the penny stocks script elaborately analyzed and recorded in the report of the Investigation.

2.

The Ld. CIT(A) erred in deleting the disallowance of loss on sale of the shares of 'penny stock scrip', M/s G S Auto International Ltd. Rs.16,690/- from the loss under the head speculation loss of Rs.12,98,365/- in the face of large scale price rigging, issue of preferential shares, splitting of share of the shares and admission of no genuine business activity in the statements of the responsible persons recorded, forming part of the report of the Investigation which formed the basis of the reasons issue of notice u/s 148 initiating income escaping assessment proceedings.

3. The tax effect on the ground of deletion of disallowance of loss of Rs. 16,690/-in respect of scrip of GS Auto International Ltd. is Rs. 5,157/- only, which is below the prescribed monetary limit in filing appeal before Hon'ble ITAT. However, this appeal is being authorized as the monetary limit to filing appeal before Hon'ble ITAT would not apply in this case (as per clause 3.1 para h) of the CBDT Circular No. 5/2024 dated 15.03.2024.

4. The appellant craves the leave to add, amend, alter and/or delete any of the grounds of appeal as above.”

3.

Before us the authorized representative filed following letter:-

DATE 15/02/2025 To, THE REGISTRAR, I.T.A.T. MUMBAI RE: APP NO. ITA 4033/MUM/2024 BEFORE G BENCH-CASE TYPE DBC ASS YEAR 2011-12 ACIT-2(1)(1) vs GSB SHARE CUSTODIAN SERVICES LTD Subject: Application for Withdrawal of CIT (Appeals) under Vivad se Vishwas Scheme 2024 PAN NO: AABCG0383D Dear Sir/Madam, The above mentioned appeal has been preferred by the Income Tax Dept. against the order passed by the ADD/JCIT (A) MADURAI in our case for the above mentioned assessment year under section 250 of the Income Tax Act, 1961. The above appeal has been fixed for hearing on 05/03/2025 before G Bench. However we have opted to resolve the dispute involved in the present appeal under the Vivad se Vishwas Scheme 2024, as per the provisions of the Income Tax Act, to achieve finality in this matter and contribute to the government's initiative to reduce litigation In this regard, we have filed Form-1 with the designated authority and have received a Form-2, a certificate under sub section (1) of section 92 of the Finance (2) Act, 2024, directing us to pay a sum of Rs.2,579/-, which has been paid by us on 15/02/2025 under challan no. 00347, With BSR CODE 0220002-BOI COPY OF FORM NO 2 AND CHALLAN ENCLOSED. As part of the conditions under the scheme, we hereby request the withdrawal of the aforementioned appeal. Kindly consider this application and confirm the withdrawal of the said appeal. We have ensured compliance with all the requirements of the Vivad se Vishwas Scheme, we would appreciate it if you could expedite the processing of this request. Thank you for your assistance in this matter. For GSB SHARE CUSTODIAN SERVICES LTD”

4.

Noting the contents of the letter, the appeal is dismissed.

Order is pronounced in the open court on 05.03.2025.

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