Case Law Details
DCIT Vs Shri Rajesh Aggarwal (ITAT Delhi)
Introduction: This case pertains to an appeal filed by the Department against the order of the Commissioner of Income-Tax (Appeals) in New Delhi. The Department’s appeal was directed against the assessment order passed by the Deputy Commissioner of Income Tax for the assessment year 2011-12.
Detailed Analysis: The grounds cited by the Department in their appeal revolve around the addition of Rs. 7,20,130 made by the Assessing Officer. The form submitted indicates a tax effect of Rs. 2,22,520 on the mentioned addition of Rs. 7,20,130.
During the proceedings, the bench queried the Senior Deputy Registrar about the applicability of CBDT Circular no. 17/2019 dated 08.08.2019, as the tax effect was below the threshold prescribed by the circular.
The Senior Deputy Registrar argued that the present appeal pertained to Long Term Capital Gains arising from the sale of shares of Nouveau Multimedia Ltd., which had been classified as a penny stock. The Assessing Officer treated these share transactions as bogus or sham with the involvement of accommodation entries. Consequently, the Senior Deputy Registrar claimed that this appeal falls within the exception clause of the CBDT Circular and must be dealt with based on the merits of the case.
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