TMI Blog2022 (5) TMI 1625X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. Similar view in the cases of SMT. VANDANA JAIN, MR. RAJ KUMAR JAIN, RAJ KUMAR JAIN HUF, and SMT. MITHU KUMARI RANKA [ 2022 (4) TMI 893 - ITAT CHENNAI] , As in the present case before us, the material gathered during the course of investigation was never confronted to the assessee. Hence, taking a consistent view, as taken we remit the issue back to the file of the AO exactly on similar directions. Appeal filed by the assessee is allowed for statistical purposes. - Shri Mahavir Singh, Vice President And Dr. M.L. Meena, Accountant Member For the Appellant : Shri S. Sridhar, Advocate. For the Respondent : Shri AR.V. Sreenivasan, Addl. CIT. ORDER PER BENCH: This appeal by the assessee is arising out of the order of Learned Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and papers but fail to agree with the contentions of the appellant that the impugned transaction was genuine and bona fide. On going through the facts and circumstances of the case, as discussed in detail in the impugned assessment order and also incorporated in the investigation report of the investigation Wing of the Department and the report submitted by SEBI, it is evidently proved that the entire series of transaction was arranged and manipulated by the assessee in such a manner that it prima facie appeared to be a genuine transaction. However, the substance of the transaction was totally different from its form. In fact, the appellant, in connivance with the brokers and the entry operators, had created and arranged all possible docume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as further strengthened by the findings of the Investigation Wing of the Income Tax Department. The documents, papers and the other evidences maintained and created by the appellant to substantiate her claim was a well thought and predetermined attempt to give a colour of genuineness to the impugned transaction. 26. Therefore, in view of the above discussed facts and circumstances of the case and considering the finding arrived at by the AO, I do hold that the impugned transaction was sham transaction. The ratio of the decisions in the case of Sumati Dayal vs. CIT, 214 ITR 801; Durga Prasad More vs. CIT, 182 ITR 540 and CIT vs. P. Mohanakala (2007), 161 Taxman 169, further strengthens the conclusion that the entire series of transaction was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As pointed out in the decision of this Court in the case of Cholamandalam MS General Insurance Co., we find in the instant case that there was no material, which necessitated the remand of the case to the Assessing Officer and it is a clear case where the Tribunal had failed to exercise its jurisdiction in the manner known to law. The Tribunal, being a last fact finding Authority, is under the legal obligation to record a correct finding of fact. [emphasis supplied by us]. In the present case before us, it is an uncontroverted factual position accepted by the Ld. Sr. DR on the material made available to the assessee vis- -vis requirements of provisions of section 142(3) of the Act. Furthermore, copy of investigation report of the Investigat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the file of Assessing Officer with similar directions. 4. The learned Departmental Representative did not object to the prayer put forth by the learned A.R. 5. We heard the parties and perused the record. We notice that the SMC Bench of Bangalore Tribunal has considered an identical issue in the case of Shri Vinod Kothari (HUF) (supra) and the matter has been restored to the file of Assessing Officer with the following observation: 4.3.1 I have considered the rival submissions and first of all, I reproduce Para No.8 of the judgment of Hon'ble Karnataka High Court rendered in the case of M/s. Chandra Devi Kothari (Supra) and this is as under: 8. In the light of the facts and circumstances as adverted to above and as the petitioner has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 As the facts prevailing In the instant case is identical nature, following the aforesaid decision of the Tribunal, we set aside the order passed by the learned CIT (Appeals) and restore all the issues to the file of Assessing Officer with similar directions mentioned in ITAT Order (supra) for examining them afresh. 6. In the result, appeal of the assessee is treated as allowed for statistical purposes. 14. Considering the uncontroverted factual position accepted by the Ld. Sr. DR on the material made available to the assessee vis- -vis provisions of section 142(3) of the Act which casts a mandatory statutory procedural compliance requirement on the Ld. AO in completing the assessment proceedings which otherwise may vitiate the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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