2013 (1) TMI 235

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....e arising out of the Tribunal's order.: "1.  Whether the Income Tax Appellate Tribunal was justified in law in dismissing the appeal filed by the department against the order of the CIT(A) in quashing the assessment for invalid reasons recorded by the Assessing Officer without appreciating the facts of the case?  2.  Whether the Income Tax Appellate Tribunal was justified in law in dismissing the appeal of the department on technical ground without going to the merit of the case?" 2. Briefly stated the facts giving rise to the present appeal are as follows. The appeal relates for the Assessment Year 1995-96. In the proceedings arising out of Sections 147 and 148 of the Act,. The respondent assessee derives income ....

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....turn filed in pursuance of notice under Section 148 of the Act also. Further a return was filed on 23.12.1999 declaring the total income of Rs. 7,73,880/-. In the reassessment proceedings the share transactions were examined and vide order dated 24.3.2000 the assessment was made on income at Rs. 23,59,390/- Feeling aggrieved the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) II, Kanpur, who vide order dated 23.6.2000 allowed the appeal but directed the Assessing Officer to take action under Section 148 of the Act against the assessee. The appeal preferred by the Revenue before the Tribunal has been dismissed by the impugned order. 4. We have heard Sri Ashok Kumar, learned Senior Standing Counsel for the Reve....

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....sed at a rate higher than the market rate as has been found in the A.Y.1996-97. In fact in the order of the A.Y.1996-97 there is only vague reference of A.Y.1995-96 which is reproduced as under:- No. CIT(A) II/195/Cir.1 (1)/2000-2001/- 'It has been claimed that Sri G.P. Kanodia is looking after the transactions of shares on behalf of the firm even though there is no such arrangements in the partnership deed or at any other place in writing. During the course of examination of Sri Kanodia, it was revealed that he has a ticket of Kanpur Stock Exchange in his own name. Therefore, it is very surprising as to why was he doing business of shares on behalf of the firm and that too for incurring heavy losses. It appeared that whole of the exe....