Principal Commissioner Of Incometax-5, Kolkata v. Mohini Devi Pansari

ITAT/134/2021IA No.GA/2/2021 IN THE HIGH COURT AT CALCUTTASpecial Jurisdiction (Income Tax)ORIGINAL SIDE PRINCIPAL COMMISSIONER OF INCOMETAX-5, KOLKATA -Versus- MOHINI DEVI PANSARI Appearance:Mr. Om Narayan Rai, Adv....for the appellant. BEFORE: The Hon’ble JUSTICE T.S. SIVAGNANAM -And- The Hon’ble JUSTICE BIVAS PATTANAYAK The Court : This appeal filed by the revenue underSection 260A of the Income Tax Act, 1961 (the ‘Act’ for brevity)is directed against the order dated 26[th] June, 2019 passed by theIncome Tax Appellate Tribunal, Kolkata Bench, SMC, Kolkata in ITANo.237/Kol/2019 for the assessment years 2015-16. The revenue has raised the following substantial questions of law for consideration: i) Whether the Income Tax Appellate Tribunal has madesubstantial error by deleting the addition made onaccount of Long Term Capital Gain in one of thepenny stock companies M/s. GCM Securities Ltd. as unexplained cash credit u/s 68 of the Income TaxAct, 1961 ? ii) Whether the Income Tax Appellate Tribunal erred inignoring the direct evidence brought on record bythe Assessing Officer in the form of modusoperandi contrived by the assesses to manipulatethe share prices of M/s. GCM Securities Ltd. torecord fictitious Long Term Capital Gains ofRs.39,08,883/- exempted from income tax byresorting to round tripping giving rise thereby tothe vice of perversity in process of decisionmaking ?ignoring the direct evidence brought on record bythe Assessing Officer in the form of modusoperandi contrived by the assesses to manipulatethe share prices of M/s. GCM Securities Ltd. torecord fictitious Long Term Capital Gains ofRs.39,08,883/- exempted from income tax byresorting to round tripping giving rise thereby tothe vice of perversity in process of decisionmaking ? We have heard Mr. Om Narayan Rai, learned standingcounsel for the appellant/revenue. Though notice had been servedon the respondents, none appears for the respondents. It cannot be disputed before us that the issue involvedin the instant case is squarely covered in favour of the revenueby the decision of this Court in PCIT-V, Kolkata vs. Swati Bajaj,reported in2022 SCC Online Cal. 1572. Thus, following the above decision, the appeal filed bythe revenue (ITAT/134/2021) is allowed and the substantialquestions of law are answered in favour of the revenue and theorder passed by the Commissioner of Income Tax (Appeals) isrestored. Consequently, the connected application for stay(GA/2/2021) also stands disposed of. (T.S. SIVAGNANAM, J.) (BIVAS PATTANAYAK, J.)