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| The Tax Publishers2020 TaxPub(DT) 0245 (Del-Trib) INCOME TAX ACT, 1961
Section 68 Section 115BE
LTCG earned on sale of Shares of Kappac Pharma was bogus and accommodation entry for which assessee was beneficiary hence, there was lack of genuineness as such, addition confirmed by CIT(A) was justified following the order of ITAT as confirmed by Delhi High Court.
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Income from undisclosed sources - Addition under section 68 - Bogus LTCG -
The LTCG earned by assessee from sale of Shares of Kappac Pharma under section 10(38) was denied by AO which was confirmed by CIT(A). Addition under section 68 was thus, made by the revenue authorities. Held: Shares of M/s Kappac Pharma Ltd. as held by the assessee in the present case, the genuineness of the same had already been examined by the ITAT Delhi Benches in the cases of Udit Kalra and find that M/s Kappac Pharma Ltd. had been de-listed from the Stock Exchange and was suspicious and was denied the exemption under section 10(38) by treating the accommodation entries as bogus. Delhi High Court in the case of Udit Kalra v. ITO had not given weightage to these legal grounds because when M/s Kappac Pharma had already been declared as bogus and it made to provide the accommodation entries in which the present assessee was a beneficiary, then the assessee was not entitled for getting benefit in such technical/legal grounds. Therefore, there was no other option, except, to follow the decision of the Delhi High Court, because no other contrary judgment had been produced by the assessee. Accordingly, following the aforesaid precedent, the well reasoned order of the CIT(A) was upheld and the issue in dispute was decided against the assessee by dismissing the appeal of the assessee.
Followed:Udit Kalra v. ITO [in ITA No. 6717/Del/2017 : 2019 TaxPub(DT) 2655 (Del-Trib) and Udit Kalra v. ITO [ITA No. 220/Del/2019 dt. 8-03-2019 : 2019 TaxPub(DT) 3068 (Del-HC).
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2014-15
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