Case Law Details
DCIT Vs Krishan Kumar (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi recently addressed an appeal filed by the Department against an order from the Commissioner of Income-Tax (Appeals) concerning a share transaction. The case pertains to the assessment year 2011-12.
Detailed Analysis: The Department had contested the decision made by the Commissioner of Income-Tax (Appeals) in favor of the taxpayer, Mr. Krishan Kumar. The Department’s main grievance was related to the deletion of an addition of Rs. 58,17,415 made by the Assessing Officer.
In the course of the proceedings, it became apparent that the tax effect in this particular appeal amounted to Rs. 17,97,581 on an addition of Rs. 58,17,415. The ITAT inquired about the applicability of CBDT Circular no.17/2019 dated 08.08.2019, which set certain thresholds for filing appeals.
The issue at the heart of this case revolved around Long-Term Capital Gains generated by the taxpayer through the sale of shares of Nouveau Multimedia Ltd. These shares had been classified as penny stocks by the Assessing Officer, who perceived the transaction as involving accommodation entries.
Please become a Premium member. If you are already a Premium member, login here to access the full content.