PANNALAL KEJRIWAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal under S. 260A of the IT Act, 1961 is at the instance of an assessee and is directed against an order dt. 12th July, 2004, passed by the Tribunal, "B" Bench, Kolkata, in income-tax appeal being ITA No. 1738/Kol/2003 for the asst. yr. 1998-99 and thereby allowing the appeal of the Revenue and setting aside the order passed by the CIT(A). Being dissatisfied, the assessee has come up with the present appeal.

(2.) THE facts giving rise to filing of this appeal may be summed up thus :

(3.) MR . Khaitan, the learned senior advocate appearing on behalf of the appellant, has strenuously contended before us that the learned Tribunal below committed substantial error in law in setting aside the relief granted to the assessee by the CIT(A) on erroneous ground that sufficient funds were not available to the partners for purchasing the shares or that the purchases and sales could not be lawfully transacted by the partners by mere book entries. By referring to the balance in partners' capital accounts on the dates of debit for their personal share investment, Mr. Khaitan points out that on the dates of purchase of those shares in the two companies, each of the partners had sufficient amount in the capital share of the business. Mr. Khaitan submits that the partners of his client have the right to purchase shares through the assessee-firm although they are the partners of the firm and it would appear that the necessary brokerage fees and service charges have been credited in the account of the assessee-firm for those transactions. Mr. Khaitan, therefore, prays for setting aside the order passed by the Tribunal as regards the readdition of the amount relating to the transaction of shares in ITC and Tata Tea Ltd.