ITO Vs Abhishek Harshkumar Jain (ITAT Mumbai)
Summary: These two appeals were filed by the Revenue against separate orders dated 21.06.2024 passed by the learned CIT(A) for Assessment Years 2014-15 and 2015-16. Since the grounds and facts were substantially similar, the ITAT Mumbai clubbed both appeals and decided them through a common order, treating AY 2014-15 as the lead case.
For AY 2014-15, the assessee had declared long-term capital gain of Rs. 23,27,832/- on sale of shares of Lifeline Drugs and Pharma Ltd. and claimed the gain as exempt under Section 10(38) of the Income-tax Act, 1961. The assessment was reopened under Section 147 based on information from the Investigation Wing concerning alleged accommodation entries involving penny scrips. The Assessing Officer treated the entire sale consideration of Rs. 24,00,000/- as unexplained cash credit under Section 68 and also made an addition of Rs. 72,000/- under Section 69C towards alleged commission.
Before the CIT(A), the assessee submitted documentary evidence including the share application form, purchase and sale broker notes, bank statements, demat statement and evidence of receipt of sale consideration. The assessee contended that the transaction was genuine and that the Assessing Officer had relied upon third-party information without bringing any adverse material specifically against the assessee. The CIT(A) accepted the assessee’s submissions and deleted both additions.
