Aadesh Commodities Pvt Ltd Vs National Faceless Assessment Centre (ITAT Mumbai)
ITAT Mumbai held that addition u/s. 68 of the Income Tax Act towards unexplained cash credit unjustified as sale consideration of shares duly reflected in the profit and loss account of the assessee.
Facts- On the basis of the information that scrips of NYSSA Corporation Ltd and M/s ACI Infocom Ltd were used by a syndicate of persons for providing accommodation entries of bogus long-term capital gains/bogus short-term capital loss/bogus business loss of entries to various beneficiaries, and the assessee is one of the beneficiary, who has received sales value ofRs.1,03,29,744 from the sale of scrip of NYSSA Corporation Ltd and Rs.29,66,102 from the sale of scrip of M/s ACI Infocom Ltd., proceedings u/s. 147 of the Act were initiated.
AO treated the transaction to bea colourable transaction and made the addition of the entire receipts from the transaction in shares of NYSSA Corporation Ltd and M/s ACI Infocom Ltd to the tune of Rs.1,32,65,671 u/s. 68 read with section 115BBE of the Act.
CIT(A) upheld the addition. Being aggrieved, the present appeal is filed.
Conclusion- The profit earned from the sale of shares of NYSSA Corporation Ltd and M/s ACI Infocom Ltd and offered the same to tax. Therefore, we find no merits in reopening of assessment in the case of the assessee for the year under consideration on the basis that the assessee has received bogus gains by trading in scrips of NYSSA Corporation Ltd and M/s ACI Infocom Ltd, which was not disclosed, and thus the income chargeable to tax has escaped assessment within the meaning of section 147 of the Act. Therefore, the entire observation/basis of the assessment is factually incorrect, since the assessment has been reopened on the wrong facts. Thus, the impugned assessment order deserves to be quashed.
