2016 (5) TMI 1457 - ITAT INDORE

Additions u/s 153A - additions by invoking provisions of sec. 68 - Held that:- We allow the appeals filed by the assessees on the issue of section 153A r.w.s. section 143(3) of the I.T. Act wherein we have already held that in absence of any incriminating documents found and seized during the course of search, the Assessing Officer is not justified in making the additions in nonabated assessment orders while passing the orders u/s 153A r.w.s. 143(3) of the Act. Thus, we quash the non-abated assessment orders for the A.Ys. 2002-03, 2003-04 & 2005-06. Accordingly, this issue of incriminating material involved in the assessee’s appeals allowed in favour of assessee

Addition in respect of RIB Bonds, on protective basis - addition u/s 68 - addition on ground as assessee has purchased this bond by his own money by paying cash to the donor - Held that:- we find that during the course of search, no such documents or evidences establish any payment of cash by the assessee to the donor. We also find that on merit, this issue is covered by the decision of this bench in the case of ACIT vs. Phoolchand Agrawal [2012 (3) TMI 621 - ITAT INDORE] as held that gifts of RIBs received by an assessee from one NRI cannot be treated as income of the assessee - addition made by the Assessing Officer u/s 68 of the Act on account of RIB gift and subsequently, enhanced by the learned CIT(A) is not sustainable.

Issue of genuineness of LTCG/STCG - AO found that there was sudden increase in price of these cos. and as such increase in price was abnormal and not based on fundamentals - Held that:- During the course of assessment proceedings, we find that there was no incriminating documents or loose papers or any other evidence was found or seized from the assessee that the transaction of long term capital gain or short term capital gain is not genuine. various documentary evidences placed on record and in the light of the various judicial pronouncements, we are of the considered view that there was absolutely no justification for both the authorities below in disbelieving the genuineness of the long term capital gain and short term capital gain shown by the assessee in his return of income, merely on guesswork, conjectures and surmises. Accordingly, these additions are directed to be deleted. - decided in favour of assessee