| The Tax Publishers2020 TaxPub(DT) 0281 (Del-Trib) INCOME TAX ACT, 1961
Section 69
Where no plausible explanation as well as documentary evidence was provided by the assessee to contradict this finding regarding sale and purchase of shares of one out of the three companies and regarding the balance loss for the sale and purchase of sale of remaining two companies, therefore, matter relating to STCL on account of sale and purchase of remaining two companies was remanded back to AO to examine afresh after giving full opportunity to the assessee.
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Income from undisclosed source - Addition under section 69 - Bogus long-term capital gain/short term capital loss -
During assessment proceedings, AO observed that assessee had sold one plot at TDI and earned short term capital gain from sale of a plot. Assessee had set off this gain from short term capital loss in securities. According to AO, on the basis of Investigation Report, the shares of 3 companies have been used for providing accommodation entries in the form of bogus LTCG/STCL. AO was of the view that on the basis of various Reports, it was found that the said companies were only paper companies and were conduit in providing accommodation entries and getting commission for the same. The basic aim of this scheme was to route unaccounted money of LTCG beneficiaries into their account / books in the garb of exempt LTCG. AO was of the view that assessee had not discharged her onus for substantiating the claim made in her return of income and finally held that the STCL earned by assessee was a sham transaction with the accommodation entries providers. Held: No plausible explanation as well as documentary evidence was provided by the assessee to contradict this finding regarding sale and purchase of shares of one of the company out of the three companies. Therefore, STCL on account of sale and purchase of the said company was confirmed. As regards the balance loss for the sale and purchase of sale of remaining two companies, AO had not asked specifically for the reasons for causing the loss with supporting evidences from the assessee and assessee had also not explained the reasons for causing the loss and supporting evidence. It would be in interest of justice, issues relating to STCL on account of sale and purchase of remaining two companies was remanded back to AO to examine the same as per law, after giving full opportunity to the assessee.
Relied:Suman Poddar v. ITO [ITA No. 841/2019, dt. 17-9-2019] : 2019 TaxPub(DT) 6695 (Del-HC) Udit Kalra v. ITO [ITA No. 220/2019 & CM No. 10774/2019, dt. 8-3-2019] : 2019 TaxPub(DT) 3068 (Del-HC) Suman Poddar v. ITO [ITA No. 1006/Del/2019, dt. 25-7-2019] Sanat Kumar v. ACIT [ITA No. 1881/Del/2019, dt. 14-6-2019] : 2019 TaxPub(DT) 5143 (Del-Trib) Udit Kalra & Anr. v. ITO [ITA No. 6717/Del/2017, dt. 8-1-2019] : 2019 TaxPub(DT) 2566 (Del-Trib) Suman Poddar v. ITO [SLP(C) No. 26864/2019, dt. 22-11-2019] : 2019 TaxPub(DT) 7939 (SC)
REFERRED :
FAVOUR : In assessee's favour by way of remand
A.Y. :
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