Case Law Details
Gaurav Goel Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi addressed the appeal in ITA No.369/Del/2019 for Assessment Year 2015-16. The appeal stemmed from the Commissioner of Income Tax (Appeals)-Ghaziabad’s order against an assessment by the Assessing Officer, ITO, Ward-1(2), Ghaziabad.
The primary contention was the denial of exemption u/s 10(38) of the Income Tax Act, amounting to Rs 49,33,062. The appellant, an individual, purchased 12500 equity shares of CCL International Ltd and subsequently sold 9500 shares during the relevant year. The appellant claimed exemption under section 10(38) as the shares were held for over a year.
The Assessing Officer (AO) raised doubts regarding the genuineness of the transactions and applied section 69 of the Act, alleging unexplained investments. However, the tribunal found the AO’s suspicions unfounded. Detailed evidence, including share purchase receipts, sale notes, and bank statements, corroborated the genuineness of the transactions. Furthermore, the appellant’s shares were sold through a registered stockbroker, and Securities Transaction Tax (STT) was duly paid.
The tribunal emphasized that suspicion, without concrete evidence, cannot justify additions under section 69. The appellant provided comprehensive documentation, including financial statements of CCL International Ltd, establishing the legitimacy of the transactions. The tribunal, therefore, ruled in favor of the appellant, deleting the addition made under section 69.
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