The Tax Publishers021 TaxPub(DT) 3442 (Ind-Trib) Shweta Agrawal v. ACIT In Favour of Assessee, Ind-Trib, ITA No. 281/Ind/2019, ITA No. 279/Ind/2019, 25-May-2021

INCOME TAX ACT, 1961

Section 68

Onus as cast upon revenue to corroborate the impugned additions by controverting documentary evidences furnished by assessee and by bringing on record, any cogent material to sustain those additions, could not be discharged. The allegation of price rigging/manipulation had been levied without establishing the vital link between the assessee and various entities of alleged entry providers the whole basis of making additions was third party statement and no opportunity of cross-examination was provided to assessee to confront the said party. As against this, assessee's position that that transactions were genuine and duly supported by various documentary evidences, could not be disturbed by AO, therefore, addition made by AO was not sustainable.

Income from undisclosed sources - Addition under section 68 - LTCG on sale of shares treated as bogus on basis of investigation report -

AO based on statement recorded by investigation wing in case of alleged entry provider, treated long-term capital gain declared by assessee on sale of shares under section 10(38) as bogus and made addition under section 68. Assessee challenged this on the ground that assessee had not been provided any access to such report nor any opportunity was provided to cross examine those persons who accepted to have provided accommodation entries for the bogus LTCG to assessee. Held: Onus as cast upon revenue to corroborate the impugned additions by controverting documentary evidences furnished by assessee and by bringing on record, any cogent material to sustain those additions, could not be discharged. The allegation of price rigging/manipulation had been levied without establishing the vital link between the assessee and various entities of alleged entry providers the whole basis of making additions was third party statement and no opportunity of cross-examination was provided to assessee to confront the said party. As against this, assessee's position that that transactions were genuine and duly supported by various documentary evidences, could not be disturbed by AO, therefore, addition made by AO was not sustainable.

Pr. CIT v. Krishna Devi & Ors. ITA No.125/2020 : 2021 TaxPub(DT) 544 (Del-HC) and Dipesh Ramesh Vardhan v. DCIT ITA No.7648/Mum/2019 dated 11-8-2020 : 2020 TaxPub(DT) 3189 (Mum-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



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