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2020 (12) TMI 1276 - AT - Income TaxReopening of assessment u/s 147 - assessee is beneficiary of bogus long term capital gain - HELD THAT:- AO after analyzing the information received from the Directorate of Investigation recorded reasons u/s 148(2) by referring to the return of income filed by the assessee and information furnished by the assessee qua the sale of shares and long term capital gain and came to conclusion that assessee’s income has escaped assessment accordingly. Reopening of assessment is based on specific information as the director of investigation has specifically provided information to the AO that assessee is beneficiary of bogus long term capital gain which is a part of big racket - we do not find any merit in the contentions of the assessee that there is no linkage between the report of the investigation wing, statement of various individual recorded during the search with the facts of the appellant. Though the statement of various persons/brokers/exit provider did not name the assessee, however, during overall investigation of the entire scam the assessee’s name came to light that he is beneficiary of these bogus long term capital gain - we are inclined to dismiss the ground raised by the assessee on jurisdiction. Accordingly ground no. 1 is dismissed. Addition u/s 68 and u/s 69C of the Act being 5% commission on total sales proceeds - As we find merit in the arguments of the Ld A.R. that assessee has furnished all the informations, details, documentary evidences before the AO but the AO has not done any further verification to find out the truth or done anything to prove the money trail of the funds as has been alleged in the order. Under these circumstances, we are not in a position to sustain the order of Ld. CIT(A) upholding the order of AO wherein the long term capital gain has been held to be non genuine and bogus - we are inclined to set aside the order of Ld. CIT(A) and direct the AO to delete the addition made under section 68. Addition made by the AO towards commission paid on the accommodation entry is a consequential one and is also deleted.
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