IN THE ITAT, DELHI 'G' BENCH

H.S. SIDHU, J.M. & O.P. KANT, A.M.

Sanjay Kaul v. ITO

IT Appeal No. 1593 (Delhi) of 2019

A.Y. 2015-16

7 January, 2020

Appellant by: Deepak Kapoor, Advocate

Respondent by: Shailesh Kumar, Sr. D.R.

O.P. Kant, A.M.

This appeal by the assessee is directed against Order, dated 14-1-2019 passed by the learned Commissioner (Appeals)-8, New Delhi [in short 'the ld. CIT(A)'] for assessment year 2015-16, raising following grounds :--

A. Addition of Rs. 1,22,76,352

1. BECAUSE the Commissioner (Appeals)-08, New Delhi, has grossly erred both in law and on facts in denying the claim of set off of Short Term Capital Loss of Rs. 1,22,76,352 on sale of shares sold on recognized stock exchange and bringing to tax as unexplained credit under section 68 of the Act.

2. BECAUSE the learned Commissioner (Appeals) has erred in concluding without any basis that appellant has introduced his unaccounted income in the form of Short Term Capital Loss by manipulating the penny stock. This conclusion is absolutely perverse in as much as on account of Short Term Capital Loss the capital of the appellant stands depleted/reduced. The inference by the Income Tax Officer as well as Commissioner (Appeals) is perverse and against the common accounting principles.

3. BECAUSE the learned Commissioner (Appeals) has also erred both in law and on facts in making an addition of Rs. 1,22,76,352 being capital loss incurred by the appellant on sale of shares listed on recognized stock exchange as unexplained credit under section 68 of the Act read with section 115BBE of the Act.