ARYAVRAT SAVINGSUNIT LIMITED.,KOLKATA vs. D.C.I.T., CIRCLE - 1(1), KOLKATA, KOLKATA

This appeal filed by the assessee pertaining to the Assessment Year (in short ‘AY’) 2015-16 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the ‘Act’) by ld. Commissioner of Income-tax (Appeals)- NFAC, Delhi [in short ld. ‘CIT(A)’] dated 30.05.2024 arising out of the assessment order framed u/s 143(3) of the Act dated 17.11.2017. 1.1. The brief facts of the case of the appellant are that the assessee is a Non-Banking Financial service in short NBFC engaged in the business of sale and purchase of shares on regular basis. The assessee filed its return of I.T.A. No.: 1545/KOL/2024 Assessment Year: 2015-16 Aryavrat Savingsunit Limited. income on 16.09.2015 declaring total income of Rs. of Rs. 84,28,880/-. The case of the assessee was selected for scrutiny, notice 142(1) of the Act was issued that was duly complied by the assessee. In course of the assessment the Assessing Officer (hereinafter referred to as ld. 'AO') alleged that profit of Rs. 9,48,344/- arising on the sale of shares of GCM Securities Ltd. and loss of Rs. 41,85,268/- arising on the sale of shares of Rajlaxmi Industries Ltd. were bogus and accordingly, the Ld. AO added back the said profit and loss in the total income of the appellant. The said order has been placed by the assessee before the Ld. CIT(A) wherein after hearing the parties Ld. CIT(A) has directed the Ld. AO to verify whether the sum already forms part of the total income under the head 'income from business and profession', if this then further addition would tantamount to double addition, with respect to the profit of Rs. 9,48,344/- from transaction in the shares of GCM Securities Ltd. but so far, the disallowing sale consideration of Rs. 41,85,268/- from sale of shares of Rajlaxmi Industries Ltd. the appeal of the assessee has been dismissed. Being aggrieved and dissatisfied with the impugned order, the present appeal has been preferred. 1.2. Ld. Counsel for the assessee challenges the impugned order thereby submitting that the Ld. AO as well as Ld. CIT(A) did wrong and passed order without going over the documentary evidences filed by the assessee in which assessee has explained that entire transaction was bona fide one. The ld. Counsel for the assessee submits that Ld. CIT(A) did not appreciate the facts in proper perspective that sale proceeds were already credited in the audited books as revenue receipts and any further attempt in making addition amounts to double addition. The ld. Counsel for the assessee further submits that entire sale proceeds already been credited as trading receipts under Schedule/Note 16 as sales of shares and securities in the audited profit and loss account under the group 'revenue from operation'. The ld. Counsel for the assessee further submits that the appellant has made valid purchase of the said shares through banking channels and sold them through recognized stock exchange and also received sale consideration in his bank accounts. Page 2 of 10 I.T.A. No.: 1545/KOL/2024 Assessment Year: 2015-16 Aryavrat Savingsunit Limited. Hence, the addition made by the Ld. AO and disallowance of the loss is unlawful and bad in law. The ld. Counsel for the assessee filed the following papers before us: i) Computation of Income for the asst, year 2015-16 ii) Audited Financial Statement as on 31-03-2015 iii) Details of purchase & sale of shares Rajlaxmi Industries Ltd. iv) Contract note of purchase & sale of Rajlaxmi Industries Ltd. v) Demat statement of In & Out of Rajlaxmi Industries Ltd. vi) Statement of payment & received along with Bank Statement vii) Statement of stock quantity & valuation from 01-04-2014 to 31-03- 2015 1.3. On the contrary, the ld. DR supports the impugned order.