Superdeal Resources Pvt. Ltd. Vs ITO (ITAT Kolkata)
₹9.32 Cr Bogus Share Sale Addition Quashed- Human Probability Can’t Override Evidence – ITAT Kolkata Strikes Down Addition on Share Sale
The dispute revolved around the confirmation of addition of ₹9.32 crore by AO u/s 68 read with section 115BBE, treating the proceeds from sale of unlisted shares as unexplained cash credits.
Assessee had filed its return of income declaring merely ₹1.94 lakh. During scrutiny, AO concluded that Assessee was not engaged in genuine business activity & that the sale of investments was only a facade to provide accommodation entries. It was alleged that the companies whose shares were sold did not have any real business operations or tangible assets, & therefore the sale of shares worth ₹9.32 crore was held to be a bogus transaction. CIT(A) endorsed this view by applying the theory of “human probabilities” & dismissed Assessee’s appeal.
Before the Tribunal, Assessee produced extensive documentation to establish genuineness. It was argued that the shares had been acquired way back in FY 2012-13 & consistently disclosed in its books, supported by bills, vouchers, & reflected in the balance sheet. Assessee highlighted that in earlier scrutiny assessments (AYs 2017-18 & 2018-19), these investments had been duly accepted by the Revenue. During the year under appeal, the shares were sold, & sale bills, bank statements, & confirmations from buyer companies were placed on record. Notices issued u/s 133(6) to the buyers were duly complied with, thereby proving identity, creditworthiness, & genuineness of the transactions.
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