Case Law Details
Hiralaxmi Ishwarlal Mehta Vs ITO (ITAT Mumbai)
ITAT noted that the assessee already disclosed the bogus long term capital gain claim on sale of penny stock shares under income disclosure scheme. The sum so disclosed was Rs. 16,20,156/-. The cost of these shares was Rs. 30,673/- which was a component of the total sale proceeds of Rs. 16,50,829/-. In this regard in this year the Assessing Officer proposed to add the cost of the shares Rs. 30,673/- as undisclosed income under section 68 of the I.T. Act. Section 68 provides for addition of credits, the source of which is not disclosed. It is beyond comprehension as to how the sum of Rs.30,673/- being the cost of purchase of the shares can be unexplained credit. No case has been made out that the Assessing Officer wanted any explanation for the source of purchase. Without any finding in this regard, the addition under section 68 of the Act of the cost of share is not legally tenable. Hence, I set aside the order of revenue authorities and decide the issue in favour of the assessee.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal by the assessee is directed against the order of learned CIT(A) dated 2.8.2021 pertains to A.Y. 2014-15.
2. The grounds of appeal read as under :
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