Archit Gupta Vs ACIT (ITAT Delhi)
ITAT Delhi deletes ₹47 lakh bogus LTCG addition – “human probability” cannot override documentary proof
Delhi Tribunal deleted the addition of ₹47.22 lakh made u/s 68 on alleged bogus Long-Term Capital Gain (LTCG) from shares of Goenka Business & Finance Ltd.
AO treated the LTCG as accommodation entry citing investigation reports & “penny stock” features. However, Tribunal noted that all transactions were through stock exchange, demat account, banking channels, & subject to STT, and that no evidence linked Assessee with any entry operator or price manipulation.
Following its own earlier orders in assessee’s cases for AYs 2012-13 & 2013-14, and relying on Pr.CIT v. Krishna Devi (Delhi HC), Pr.CIT v. Ziauddin A. Siddique (Bom HC) & Sumati Dayal v. CIT (SC), ITAT held that suspicion cannot replace proof and that “mere high profit or abnormal share price rise does not make a transaction bogus.”
Accordingly, the entire addition was deleted and appeal allowed in full.
FULL TEXT OF THE ORDER OF ITAT DELHI
The present appeal is filed by the Assessee against the order of the Commissioner of Income Tax (Appeals)-30, New Delhi [‘Ld. CIT(A) ’ for short] dated 19/09/2022 pertaining to Assessment Year 2016-17.
