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| The Tax Publishers2019 TaxPub(DT) 5390 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
Assessee had conducted all the share transactions through a recognized broker and received and made payments through account payee cheques. AO had nowhere in assessment order referred to any material to prove complicity of assessee in alleged accommodation entry operation genuine transactions could not be treated as ingenuine merely on arbitrary view of suspicion taken on the basis of report of investigation wing.
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Income from uundisclosed sources - Addition under section 68 - Sale proceeds of shares -
AO on the basis of information emanated from investigation wing treated long-term capital gain declared as exempt by the assessee on sale of certain shares as bogus and accordingly made addition of sale proceeds of shares under section 68.Held: Assessee had conducted all the share transactions through a recognized broker and received and made payments through account payee cheques. AO had nowhere in assessment order referred to any material to prove complicity of assessee in alleged accommodation entry operation genuine transactions could not be treated as ingenuine merely on arbitrary view of suspicion taken on the basis of report of investigation wing.
Followed:Usha Singhania in ITA No. 1495/Kol/2018. Relied:Lalchand Bhagat Ambica Ram v. CIT (1959) 37 ITR 288 (SC) : 1959 TaxPub(DT) 181 (SC). Distinguished: Ratnakar M. Pujari v. Assessee -- ITA No. 995/Mum/2012, Order, dt. 3-8-2016 [Asst. yr. 2006-07] : 2016 TaxPub(DT) 4414 (Mum-Trib), Ritu Sanjay Mantry v. ITO ITA No. 2003/Mum/2017, Order, dt. 9-2-2018, ITO v. Shamim M. Bharwani (2016) 69 Taxmann.com 65 (Mum-ITAT) : 2015 TaxPub(DT) 1489 (Mum-Trib) and Vidya Reddy, ITA No. 126/Chny/2017-Chennai ITAT.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
IN THE ITAT, KOTKATA BENCH
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