GREATER INDIA PORTFOLIO,MUMBAI vs. DDIT (IT) 3(1), MUMBAI

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ITA 5296/MUM/2014Status: DisposedITAT Mumbai17 March 2016AY 2009-103 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal accepted the assessee's submission regarding the three accepted transactions and ordered their deletion from the addition. For the fourth transaction, the Tribunal admitted additional evidence and remanded the matter back to the AO for fresh adjudication.

What were the facts?

The assessee, a Foreign Institutional Investor, had transactions flagged for reconciliation. While most were reconciled, a portion involving four specific share transactions remained in question. The Assessing Officer (AO) later accepted three of these transactions.

What were the issues?

The primary issue was the addition of unexplained investments in shares. A secondary issue involved the admission of additional evidence for one of the transactions.

Which sections of the Income-tax Act were involved?

Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI D. KARUNAKARA RAO & SHRI PAWAN SINGH

For Appellant: Shri R. Murlidhar
For Respondent: Shri K.P.R.R. Murty, DR
Hearing: 09.03.2016Pronounced: 17.03.2016

PER D. KARUNAKARA RAO, AM: This appeal filed by the assessee on 21.8.2014 is against the order of the CIT (A)-10, Mumbai dated 28.2.2014 for the assessment year 2009-2010. 2. In this appeal, assessee raised seven grounds in toto and they revolve around the issue relating to the addition of Rs. 38,05,948/- made on account of unexplained investments u/s 69 of the Act. In this regard, Ld Counsel for the assessee submitted before us that the assessee is a Foreign Institutional Investor (FII) and registered voluminous transactions in trading shares. The Department received information from AIR and called the assessee for reconciliation. During the assessment proceedings, nearly more than 90% of the transactions were reconciled leaving the volume of transactions of Rs. 14.04 Crs involving four transactions. The details are given in a table at page 11 of the order of the CIT (A) and the same is as under:-

Sl.No. Scrip Name Date of Quantity Amount Purchase 1 Oil and Natural Gas 7-May-08 20,483 2,12,49,142/- Corporation Ltd

2.

Tata Steel Limited 19-Aug-08 1,86,623 11,17,50,130/-

3.

Bharti Airtel 13-Mar-09 6,500 36,31,900/- Limited

4.

Indiabulls Real 26-Mar-09 36,176 38,05,948/- Estate Limited

3.

Referring to Sl. Nos. 1, 2 and 3 above, Ld Counsel for the assessee demonstrated before us that these transactions were also eventually accepted by the AO as evident from the modification order dated 19.3.2015 passed by the AO vide Annexure-A to the assessee’s letter dated 3.3.2016. Accordingly, the relevant additions are required to be deleted. We order accordingly.

4.

Regarding Sl. No.4 above, Ld Counsel for the assessee submitted that the assessee now submits additional evidence, placed at Annexure-B to the said letter dated 3.3.2016 and pleads for admitting the same and remanding the matter to the file of the AO for fresh decision in this regard.

5.

After hearing both the parties and on perusal of the orders of the Revenue Authorities as well as the relevant material placed before us, we find merit in the Ld Counsel’s submissions. Accordingly, we admit the said additional evidences and remand the same to the file of the AO for fresh adjudication in this regard. AO shall grant a reasonable opportunity of being heard to the assessee. Accordingly, Grounds raised by the assessee are allowed for statistical purposes.

6.

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 17th March, 2016. (PAWAN SINGH) ACCOUNTANT MEMBER भुंफई Mumbai; ददनांक 17.3.2016 व.नन.स./ OKK , Sr. PS आदेश की प्रतिलऱपि अग्रेपिि/Copy of the Order forwarded to : अऩीराथी / The Appellant 1. 3 प्रत्मथी / The Respondent. 2. आमकय आमुक्त(अऩीर) / The CIT(A)- 3. 4. आमकय आमुक्त / CIT 5. ववबागीम प्रनतननधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai 6. गार्ड पाईर / Guard file. सत्मावऩत प्रनत ////

आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt.

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