No Addition for Bogus LTCG on Mere Suspicion or in Violation of Natural Justice

Rajeev Agarwal & Sons Vs ITO (ITAT Delhi) ITAT Delhi allowed the appeal of Rajeev Agarwal & Sons, challenging the addition of ₹21,85,891 under section 68 of the Income-tax Act, 1961, which the Assessing Officer (AO) had made by treating long-term capital gains (LTCG) from share sales as unexplained income. The AO considered the transactions sham based on statements from individuals involved in accommodation entries, including the MD of Unno Industries, the company whose shares were sold. Despite the assessee providing documentation of share purchase through a broker, bonus share allo...