TaxTMI 
TaxTMI 
2025 (7) TMI 2053
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....the Income Tax Act, 1961 (the Act) is directed against the order dated February 29, 2024 passed by the Income Tax Appellate Tribunal, A-Bench, Kolkata (the Tribunal) in ITA/614/Kol/2023 for the assessment year 2014-15. 2. The revenue has raised the following substantial questions of law for consideration : "i. Whether in the facts and in the circumstances of the case the tribunal was justified in law to delete the addition of Rs 1,97,94,148/ made on account of bogus share trading loss claimed by the assessee which could not be substantiated by the assessee and give plausible explanation to the genuineness and the creditworthiness of the transaction in question. ii. Whether on the facts and the circumstances of the case ....
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.... not have been acceded to?" 3. We have heard Mr. Soumen Bhattacharjee, learned senior standing counsel for the appellant/revenue and Mr. Abhratosh Majumdar, learned senior advocate for the respondent/assessee. 4. The assessee filed its return of income declaring total income as 'nil' which was processed under Section 143(1) where a refund of Rs. 22,83,940/- was raised and issued. The case was selected for scrutiny and statutory notices under Sections 143(1) and 142(1) were served on the assessee calling for particulars. In compliance with the same the authorised representative of the assessee appeared from time to time and explained the return and submitted the details called for. Upon perusal of the accounts and details, the Assessin....
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....nformation shows that the assessee company does not have any real business activity and the loss shown from trading in shares is bogus. The assessee was directed to show-cause as to why the share trading loss of Rs. 1,97,94,148/- should not be disallowed as bogus loss. Sufficient time was granted to the assessee to respond to the show-cause notice. The assessee though received the show-cause notice did not submit any reply and, therefore, the Assessing Officer proceeded and completed the assessment by passing an order dated 16.12.2016 under Section 143(3) of the Act. 7. The assessee filed an appeal before the Commissioner of Income Tax (Appeals), Lucknow-3. The appeal was dismissed by an order dated 24.4.2023 and from paragraph 4.1 of th....
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....g loss was a genuine loss. The assessee did not appear before the Assessing Officer. Therefore, this aspect of the matter has been lost sight of by the learned Tribunal. Apart from that, the learned Tribunal has stated that the statement given by the director on 22.3.2016 has been retracted by filing an affidavit. 10. Admittedly, the alleged retraction is beyond the period of two years, that too after the assessment was completed by order dated 16.l2.2016. Therefore, the Tribunal ought to have taken note of the legal position and rejected such retraction as an afterthought. 11. Even assuming that the learned Tribunal wanted to examine the retraction then the learned Tribunal should have gone into the facts and found as to whether the ....