JAYANTHILAL,CHENNAI vs. ITO NON CORPORATE WARD 4(2), CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -5, Chennai, dated 12.09.2017 and pertains to assessment year 2010-11.

This appeal relates to purchase and sale of shares of Bakra Prastishan Ltd. The assessee appears to have claimed long term capital gain of ₹10,57,500/- and also claimed exemption under Section 10(38) of the Income-tax Act, 1961 (in short 'the Act'). The Assessing Officer mainly placed reliance on the statement said to be recorded from one stock broker Shri Ashok Kumar Kayan. The assessee claims that a copy of statement said to be recorded from Shri Ashok Kumar Kayan was not furnished to him. This Tribunal is of the considered opinion that the statement said to be recorded from Shri Ashok Kumar Kayan is a material evidence, therefore, it needs to be furnished to the assessee before placing reliance by the Assessing Officer. Moreover, a perusal of the assessment order shows that the assessee has not furnished any details before the Assessing Officer. The mode of payment of purchase price and the mode of receipt from sale price were not examined by the Assessing Officer.

In view of the above, this Tribunal is of the considered opinion that the matter needs to be re-examined by the Assessing Officer. Accordingly, the orders of both the authorities below are set aside and the entire issue is remitted back to the file of the Assessing Officer for re-examination. The Assessing Officer shall furnish a copy of the statement said to be recorded from Shri Ashok Kumar Kayan to the assessee and thereafter decide the issue afresh, in accordance with law, after giving a reasonable opportunity to the assessee.

In the result, the appeal filed by the assessee is allowed for statistical purposes.