PCIT Vs Renu Aggarwal (Supreme Court of India)
The matter concerned an appeal arising from proceedings for Assessment Year 2014-15 involving an addition made by the Assessing Officer on the allegation that certain share transactions represented penny stock transactions. The supplied material records that the assessee had obtained relief against the assessment order before the CIT(A), and the Revenue subsequently challenged the appellate order before the Income Tax Appellate Tribunal, Lucknow Bench “SMC”, in ITA No.205 of 2020. By order dated 17.01.2022, the ITAT dismissed the Revenue’s appeal.
Read HC Judgment in this case: Allahabad HC Dismisses Revenue Appeal Against Deletion of Penny Stock Addition
The material records the ITAT’s findings that the CIT(A) had examined the basis of the Assessing Officer’s additions and found no adverse general or specific statement from the stock exchange’s officer or the company whose shares were involved. According to the findings reproduced by the ITAT, the Assessing Officer had relied upon facts concerning unrelated persons whose statements had been recorded, while the assessee’s name was not mentioned by those persons and no material relating to the assessee was found during the investigation conducted by the Investigation Wing. The CIT(A) had relied upon evidence furnished by the assessee before the Assessing Officer and various decisions of the Lucknow and other Benches. The ITAT found no adversity in the CIT(A)’s order and noted that Lucknow Benches had, in various cases, granted relief after relying upon the Delhi High Court decision in Krishna Devi and others.
