Puja Gupta Vs ITO (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi heard an appeal filed by Puja Gupta against the order of the Commissioner of Income Tax (Appeals)-6, New Delhi. The case centered on the addition of ₹1,69,12,820 to Gupta’s taxable income under Section 68 of the Income Tax Act, alleging unexplained cash credit. The Assessing Officer (AO) claimed that Gupta’s transactions involving shares of Dhanleela Investment & Trading Co. Ltd. were part of a pre-arranged scheme to create artificial long-term capital gains (LTCG). Additionally, an amount of ₹5,07,385 was added as unexplained expenditure under Section 69. The CIT(A) upheld these additions, citing the lack of genuine financial backing for the share price increase.
Gupta argued that her transactions were supported by documentary evidence, including bank statements, contract notes, demat statements, and financial records. She pointed out that her dealings were carried out through a registered stockbroker and that securities transaction tax (STT) was duly paid. Furthermore, she contended that the AO’s reliance on statements from third-party brokers, Sri Anil Khemka and Sri Harshvardhan Kayan, was unfair since she had no transactions with them, and their statements were neither provided to her nor was she given the opportunity to cross-examine them. Citing the Supreme Court ruling in Andaman Timber Industries v. CCE (2015), Gupta maintained that such evidence should not be used against her.
