The Income Tax Appellate Tribunal (ITAT), Raipur Bench, has recently, in an appeal filed before it, on finding that unexplained money under section 69A was received back through banking channel as sale consideration of shares, upheld the addition made under Section 115BBE of the Income Tax Act.
The aforesaid observation was made by the Raipur ITAT, when an appeal was preferred before it by the assessee, as directed against the orders passed by the Commissioner of Income-Tax (Appeals), Raipur, which in turn arose from the orders passed by the A.O in their cases under Section 143(3) of the Income Tax Act, for the assessment year 2015-16.
The ground of the assessee’s appeal being that the CIT(A) erred in confirming the addition of Rs.5,40,000/- made by the AO as undisclosed income, holding the transaction of sale of shares to be bogus, the brief facts of the case were that the assessee-HUF had e-filed its return of income for A.Y.2015-16, declaring an income of Rs.17,96,730/-. And subsequently, the case of the assessee was selected for complete scrutiny under CASS for examination of suspicious sale transaction in shares (Penny Stock tab in ITS), and notice under Section 143(2) of the Income Tax Act was issued.
During the course of assessment proceedings, it was observed by the A.O that the assessee had claimed to have earned a profit of Rs. 2,81,049/- on account of Short-Term Capital Gain (STCG) by transacting in shares of CCL International Ltd. And on the basis of her aforesaid exhaustive deliberations and verifications, it was observed by the A.O that the assessee in the garb of the transaction in question, of purchase/sale of shares, had in fact introduced its undisclosed funds in the form of capital gain.
of the CIT(Appeals), that the assessee has presently carried the matter in appeal before Raipur ITAT.
Hearing the opposing contentions of both sides as submitted by Shri R.B Doshi, CA, on behalf of the assessee, and by Shri Piyush Tripathi, the Sr. DR, on behalf of the Revenue, the ITAT Coram of Ravish Sood, the Judicial Member thus held:
“In terms of my observations, I concur with the view taken by the lower authorities and uphold the addition of Rs.5.40 lac made by the A.O, on the ground that the same was the undisclosed fund of the assessee that was routed back in the garb of the aforesaid transaction of purchase/sale of shares. Thus, the Grounds of appeal raised by the assessee being devoid and bereft of any merit, are dismissed in terms of my aforesaid observations.”
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