Anoop Jain Vs ACIT (ITAT Delhi)
The appeal before the ITAT Delhi was filed by the assessee against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2015–16. The dispute related to additions made under Section 68 of the Income Tax Act, where long-term capital gains (LTCG) of Rs. 5,70,91,750/- from sale of shares of Lifeline Drugs and Pharma Ltd. (LDPL) were treated as non-genuine. Additionally, an amount of Rs. 11,41,835/- was added as presumed commission for alleged bogus transactions.
The assessee had purchased shares of LDPL through a transaction involving sale of shares of another company, and later sold a substantial number of LDPL shares after stock split, generating LTCG. The assessee provided supporting documentary evidence during assessment proceedings.
The Assessing Officer disbelieved the transactions, relying heavily on reports of the Investigation Wing, Kolkata, and general findings regarding entry operators and alleged manipulation of share prices. It was concluded that the assessee failed to discharge the burden under Section 68, and the gains were treated as accommodation entries. The CIT(A) upheld the additions.
The Tribunal examined whether the assessee had discharged the burden of proof. It noted that the assessee was a habitual investor with substantial investments and consistent history of gains and losses across several financial years. Despite this, the Assessing Officer questioned only one scrip (LDPL), while accepting other transactions, including short-term capital gains and other LTCG.
