CIT Vs Rohan Agarwal (ITAT Delhi)
ITAT Delhi held that addition towards accommodation entry and bogus capital gain exemption upheld since the shares were purchased in off market mode. Accordingly, appeal of revenue allowed.
Facts- During the year the assessee claimed a sum of Rs.80,88,456/- as exempt under section 10(38) of the IT Act, 1961 being Long Term Capital Gain from the sale of equity Shares. The name of the assessee was flagged as a person who had traded in Penny Stock Scrip of M/s CCL International Limited by the Investigation Wing of the Department. Thus, the assessment was re-opened by issuing of notice u/s 148 on 30.03.2021.
AO concluded that assessee’s own money was being routed in through the mechanism of penny stocks/long term capital gain. Hence, entire receipts from the sale of shares Rs.95,25,646/- was taxed as unaccounted income u/s 69A of the IT Act.
CIT(A) allowed the appeal of the assessee. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the order of single bench has hinged on the unfavorable statement which has been held as against the assessee and the assessee has purchased the share in the off market mode. In this case the assessee has purchased shares by cheque and hence, the facts are materially different. There is no whisper of any statement in the order. The order of the division bench is exactly on the same issue is held to be appropriate in this matter to be followed. Accordingly, the appeal is allowed.
