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Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: SH. N. K. BILLAIYA & SH. C. N. PRASAD
PER N. K. BILLAIYA, AM:
1. This appeal by the revenue is preferred against the order of the CIT(A)-14, New Delhi dated 24.09.2020 pertaining to A.Y.2011-12.
The grievance of the revenue read as under :-
Hon’ble ITAT had examined the validity of re-assessment proceedings in the case of Sh. Suresh Kumar Agarwal where facts were identical to the present case Ld. CIT(A)-14, New Delhi has rejected these grounds of appeal and held that the reassessment proceedings were validly initiated.
2. Ld. CIT(A) has mainly relied upon the judgment of the Hon’ble ITAT, Delhi in the case of Suresh Kumar Aggarwal Vs. ACIT (supra) citing the reason of being identical case.
3. LD. CIT(A)-14, New Delhi has observed that share price had gone down to Rs. 12 but the assessee has purchased share at average price of Rs.35.22/ per share. The highest price of M/s. Nouveau Global Ventures Ltd. has risen to Rs.205 whereas the assessee has sold his investment at average selling rate of Rs.107.54 per share.
4. Ld. CIT(A) has observed that there was no suspicion in the share holding pattern.
5. Ld. CIT(A) has observed that the shares were sold through SEBI registered share broker at online portal of BSE for which payment was received through proper banking channel and STT, Service Tax, Stamp Duty and other charges were paid on the transactions.
A perusal of the record show that the tax effect in the impugned appeal is around Rs.20 lacs and, therefore, this appeal is hit by CBDT Circular No. 17/2019 dated 08.08.2019.
Our view is fortified by the following letter from the ITO, Ward- 43 (6), Delhi dated 07.12.2022 :-
In the light of the CBDT circular and the aforementioned letter this appeal by the revenue is dismissed. However, should the AO feel that still the appeal is not hit by the aforementioned circular of the CBDT he may approach the Tribunal as per the provisions of the law.
In the result, the appeal of the assessee is dismissed.
Decision announced in the open court on 17.05.2023.