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2022 (11) TMI 879 - ITAT MUMBAIAddition u/s 68 - bogus LTCG - Addition relying on the report of the investigation wing and the steep increase in the price of the shares - HELD THAT:- Assessment order in the present case does not have any mention about the independent inquiry that was conducted by the AO relevant to the impugned transaction. It is also observed that the AO has failed to examine the alleged Directors of M/s. Diamant Infrastructure Limited as to the nature of business carried out by the said company nor has the AO examined the alleged brokers involved in the impugned transactions. As decided in Swati Bajaj [2022 (6) TMI 670 - CALCUTTA HIGH COURT] on similar issue which held that the AO should conduct enquiry on the impugned transaction to substantiate that the claim of the assessee for LTCG/STCL is non genuine and further held that the AO can rely on circumstantial evidence based on the doctrine of preponderance of probabilities in such cases where it is beyond the reach to carve out direct evidences. But, in the present case we find that the AO has made no enquiry other than relying on the report of the investigation wing and the steep increase in the price of the shares. We are of the considered opinion that the AO should have done a further analysis and enquired into the genuineness of the alleged transaction. In the present case in hand the assessment order is flawed by lack of enquiry by the AO. Appeal filed by the assessee is allowed.
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