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| The Tax Publishers2021 TaxPub(DT) 4397 (Ind-Trib) INCOME TAX ACT, 1961
Section 68
Assessee had purchased shares online, payments were made through banking channel, and shares were dematerialized and sales were routed from demat account and consideration was received through banking channel. AO had been guided by the report of investigation team in respect of bogus transactions of capital gain. However, no finding specifically against assessee had been made in the investigation report and, therefore, AO was not justified in making addition under section 68.
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Income from undisclosed sources - Addition under section 68 - LTCG on sale of shares alleged as bogus -
AO, based on information emanated from investigation wing, treated long-term capital gain on sale of shares declared by assessee under section 10(38), as bogus and made addition under section 68. Held: Assessee had purchased shares online, payments were made through banking channel, and shares were dematerialized and sales were routed from demat account and consideration was received through banking channel. AO had been guided by the report of investigation team in respect of bogus transactions of capital gain. However, nothing was brought on record by revenue to show that persons investigated, including entry operators or stock brokers, had named assessee was in collusion with them. No finding specifically against assessee had been made in the Investigation Report and, therefore, AO was not justified in making addition under section 68.
Relied:Andaman Timber Industries v. CCE (2015) 281 CTR 241 (SC) : 2015 TaxPub(DT) 5186 (SC) and Anoop Jain v. Asstt. CIT (2020) 181 ITD 218 (Del-Trib) : 2020 TaxPub(DT) 402 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, INODRE BENCH
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