Principal Commissioner Ofincome Tax-5, Kolkata v. Before

OD-31 ITAT/199/2022IA No.GA/2/2022 IN THE HIGH COURT AT CALCUTTASpecial Jurisdiction [Income Tax]ORIGINAL SIDE PRINCIPAL COMMISSIONER OFINCOME TAX-5, KOLKATA -Versus- Appearance:Mr. Tilak Mitra, Adv....for the appellant. BEFORE: The Hon’ble JUSTICE T.S. SIVAGNANAM -And- The Hon’ble JUSTICE HIRANMAY BHATTACHARYYA Date : 20[th] December, 2022. The Court : This appeal filed by the revenue underSection 260A of the Income Tax Act, 1961 (the ‘Act’ forbrevity) is directed against the order dated 28[th] November,2018 passed by the Income Tax Appellate Tribunal, “C” Bench,Kolkata (the Tribunal) in ITA No.971/Kol/2017 for theassessment year 2014-15. The revenue has raised the following substantial questions of law for consideration: (i)Whether the Learned Income Tax Appellatetribunal erred in ignoring the direct and (ii) circumstantial evidence brought on record bythe Assessing Officer in the form of modusoperandi contrived by accommodation entryoperators to manipulate the share prices ofKailash Auto Finance Limited enabling theassessee to record fictitious Long TermCapital Gain of Rs.37,03,514/- and claim the same as exempted from income tax giving risethereby to the vice of perversity in theprocess of decision making ?Whether the Learned Income Tax Appellatetribunal erred in deleting the disallowancesof assessee’s claim of Long Term Capital Gainof Rs.37,03,514/- overlooking the facts thatthe entire set of related transactions werestage managed with the object to facilitatethe assessee to plough back its unaccountedincome in the form of fictitious Long TermCapital Gains of Rs.37,03,514/- and claimbogus exemption u/s.10(38) of the Income TaxAct, thereby giving rise to the vice of flawin the decision making processes ? We have heard Mr. Tilak Mitra, learned standingcounsel appearing for the appellant/revenue. Though therespondent had been served, none appears for the respondent.It cannot be disputed that the substantial questionsof law which have been raised by the revenue in this appeal,were considered in a batch of cases and the appeals filed bythe revenue are allowed namely, Principal Commissioner of Income Tax-V vs. Swati Bajaj reported in 2022 Scc Online Cal1572. Thus, following the said decision, this appeal filedby the revenue (ITAT/199/2022) is allowed and the substantialquestions are answered in favour of the revenue.Consequently, the connected application for stay (IANo.GA/2/2022) also stands disposed of. (T.S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) As./ S.Das